Credit Line Vs. Number of Credit Cards

Every credit card you use affects your ability to get new forms of credit and can raise or lower your credit score. Creditors want to know how well you can manage your credit, and using your cards unwisely results in a lower credit score and a more difficult time in getting credit. You should always know exactly how many cards you have at any time, as well as the associated credit limits that come with them.

Credit Line

A credit line is the amount you are allowed to charge on each of your credit cards. Also known as a credit limit, each card company determines how much each card's limit is. Card companies determine your credit line based on your credit score and your income level. The higher your score and the higher your income, the more you'll be able to charge on each card.

Number of Cards

In general, the number of cards you have doesn't have a big impact on your credit score. Rather, it is how you use the cards you have that has the primary impact on your score. If you have a lot of cards, carry a monthly balance on all of them and are barely able to keep up with the monthly payments, you have too many cards. You should only keep as many cards as you can reasonably manage or you risk damaging your credit.

Credit Score

If you use a credit card and carry a balance from month to month, the amount you carry can affect your credit score. If you charge the maximum amount on any credit card, known as "maxing-out" your card, your credit score lowers anywhere from 10 to 45 points. On the other hand, if you keep any balance to below about 25 percent of your available credit line, you can improve your score, according to Kiplinger.

Other Effects

If your credit score drops, your credit card issuers may also lower your credit lines. Though the creditor has to notify you of any change it makes to your credit card agreement, it doesn't have to ask your permission to lower your credit limit. If you max-out several credit cards and suffer a lower credit score because of it, your creditors may lower your lines on cards you barely use at all.