Is revolving credit bad?

While having too many accounts can hinder your credit score, having more than one account is a good idea. The reason is because having only one account does not show a potential lender enough data to work with in determining how likely you are to pay back a financial obligation. Having multiple accounts can hurt you if you have large balances on those accounts as lenders can view that as a sign that you are living beyond your means and will therefore think twice about extending you a line of credit.

Another case where multiple accounts can hurt you is when you apply for multiple lines of credit within a short period of time. This action also signals a red flag to potential lenders. From personal experience, I know that having multiple accounts is a good thing as long as the accounts are showing a good history of timely payments.

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