Quote:
Originally posted by psyko514
If you have 10 credit cards, each with a $10k limit, all creditors view that as $100k of debt, whether or not you have a balance on your card.
The reasoning behind this? At anytime, you can go out and max those cards. It's pretty much "pending debt".
And the more credit cards you have, the worse it looks on your credit history. It makes you appear as a credit seeker and lowers your credit score each time you get a new one.
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Bank of Nova Scotia is the one (Canadian) exception to that, they don't hold your available credit against you when you are looking for a loan/mortgage, they just look at what you owe at the time of application.