Most Florida residents would agree that it would be wise to avoid having too many credit cards. However, that has not stopped one man from making it into the Guinness Book of World Records for having the most credit cards at 1,497. Many people would say that he is at risk of incurring a significant amount of credit card debt, but the man claims to have a credit score of 750.
Some sources say that he is acting intelligently by having so many open accounts that are not maxed out. However, no one would recommend having the number of cards this man has. Opening numerous credit card accounts can lower your credit score, but that is not the biggest risk that people take when having several accounts. Overspending could easily get well-meaning consumers into financial situations from which they cannot easily recover — if they can recover at all.
It is true that having available credit can increase consumers’ credit scores and make them attractive to lenders, but sometimes it creates too much of a temptation. One couple got into financial trouble when they accumulated nearly $89,000 in credit card debt with just 11 cards. It took them time and several jobs to repay that amount of debt.
Not everyone would be able to pay off that kind of credit card debt. Financial mistakes, job losses or medical emergencies, among other financial calamities can quickly lead to a downward spiral from which even the best-intentioned Florida residents cannot recover. Fortunately, the U.S. Bankruptcy Code exists to help people who end up with an overwhelming amount of debt. The process can be complex and frustrating, so it may be a good idea to enlist the help of bankruptcy counsel.
Source: MarketWatch, “This guy has 1,497 credit cards — does he know something we don’t?“, Maria LaMagna, Jan. 6, 2016