Can my credit rating be negatively affected by having too much available credit?
A. You may be turned down for a loan because you have too much available credit. When creditors evaluate your application for credit, they ascertain whether, if you were to use all your available credit, you would be over your head Accounts you no longer use, or have paid off, can count against you if they are listed as “open” on a credit report. The act of paying off a revolving account does not, in itself, result in its being “closed” in the eyes of creditors. Further, some creditors do not report to credit bureaus the fact that accounts are closed.
