Originally Posted by Tark
as Will said it's only when there is a lot of credit inquiries in a short period of time. Also sometime when you apply for a mortgage some bank consider the credit limit as debt even if you card has a 0 balance. Having a couple of credit card is good for your credit and if you have an unpaid balance you should spread it out not put all the debt on 1 credit card.
Facts:
1) Having only a few credit cards with balances makes it appear to as though you are living beyond your means and are relying on credit to get you by, to potential creditors
2) If you have many credit cards, or a few but with high credit lines, and you have 0 balances on them, to a potential creditor it may appear as "potential debt". Like there is enough slack in your "credit rope" to hang yourself with.
** DO find a medium between the two extremes. DON'T rack up CC's and let them sit without use. DON'T get 10 lower-limit cards and have balances on all of them. DON'T close CC accounts unless absolutely necessary. -If you continuously change CC's for better rates THAT smart, but by closing your previous ones you are eliminating whatever "credit history" you had with that company and hence you appear less stable to potential creditors.
Hope that helps, its my take on it at least.