Too Many Credit Lines

Lenders don't want to see that you have too many lines of credit as this can be a sign that your finances are overextended and you might not be able to make the repayments on any money that you borrow from them.

Even when you can prove that you have been making all of your current repayments for loans and bill payments it will be difficult to get additional credit as that particular source of credit might be the one that changes your ability to competently manage your debt.

Every time you borrow more money your ability to make your payments on time diminishes and lenders will take into account the amount of money you are requesting from them in addition to your current debt and they will usually place more importance on your ability to pay them than your other debts.

Not only will they look at your current financial position and your ability to pay your current debts but they will also take into account your ability to handle unforeseen problems that might occur.

Sickness and other problems will place additional loads on finances in the form of an inability to generate the income required to make the payments and also the added cost of healthcare.

In addition to this it has been shown by the research that is available to the lending institutions that the additional stress that is placed on people who have excess or high levels of debt can cause divorce, stress related illnesses and other problems that will have an impact on the ability to cover the repayments on debt.

Lenders will always look at the worst-case scenario as they need to protect their investment and if they have any doubt about your ability to pay them you won't get the credit.

The credit bureaus also understand these facts and they will re-rate your credit score accordingly to help lenders make better decisions.

Obviously then, you will want to be reducing the number of credit lines you have to a more reasonable number to help improve your credit score.