What is the downside of ordering a lot of credit cards?

Question

I mean, I don't intend to use them at all. Nor do i actually intend to order lots of credit cards... I'm just wondering, if someone was to order lots of cards (the ones with no annual/monthly fees) would there be any downside to it?

e.g. to order the BT credit card, then simply never use it, would that affect anything in any way?

Answer 1

Each time you register credit cards it is noted on a credit system so there is only so many credit cards you can get as your ability to pay multiple cards would be looked at and approved denied depending on each institutions standards of lending.

On a personal note it may encourage unneccessary spending which is never a good thing!

Answer 2

A high number of open accounts, as well as a high number of credit inquiries, hurts your credit score.

When additional credit is required, you are better off to request a credit line increase on an existing account.

Answer 3

It hurts your credit score.  Higher insurance in some states.

Answer 4

A lot of debt, or temptation.

Answer 5

Applying for multiple credit cards over a short timeframe will take a big bite out of your score.

If you don't use the cards, the company will cancel them after 9 months or so for inactivity.

Having a big stack of credit cards in your sock drawer is asking for problems with fraud and ID theft.  You have to monitor and secure all those cards.

There probably is a point where too many open credit cards hurts your score, even if you don't use them, but that would be a very large number.

On the other hand, if you don't use any of the accounts, you won't be building any kind of payment history, which is what you need to build your score.

Answer 6

it will hurt your credit even if you do not use them.  having a lot of open credit can hurt you as much as not having any or having bad credit.  why open them if your not going to use them?  its better to have 1 or 2 that you can use if needed.

Answer 7

It is difficult to manage it. The payment and due dates etc., So dont have more than 4

Answer 8

Oddly enough, every time you apply for credit, your score takes a little hit. So if you went out and applied for lots of cards, after your score got dinged up, and all the card requests came in a short span of time I wouldn't be surprised if you just got a card or two and a bunch of rejections.

And a lower credit score.