Knowing how to protect our finances is essential to make a good administration of our money. Just as there are different types of risks on a day-to-day basis, there are also risks in finance, and
Knowing how to protect our finances is essential to make a good administration of our money. Just as there are different types of risks on a day-to-day basis, there are also risks in finance, and this has to do directly with the amount of credit cards you have and the credit line each has.
In this way, the credit line of all our cards is our total risk exposure
The risk exposure implies how many possibilities you have of borrowing and it is calculated taking into account your total credit line, that is, those of all the cards you have, and not just one.
What is the point of having this data in mind?
First, to remember to be careful and calculate how exposed to the risk you are. So, if you are thinking of accepting a new credit card, first evaluate your current situation. The same happens if they offer you an increase in the line of your plastic, because it is recommended that this is not more than twice your salary, and will also contribute to the increase in total risk, so you should not overlook this point.
On the other hand, if you then plan to apply for a car or mortgage loan
Keep in mind that the bank will evaluate you and will not value a single card, but will take into account all that you have and will see what is the risk to which you are exposed. The higher that risk is, the more likely you are to borrow, which makes it more difficult for the credit to be approved without objection.
While it is true, being exposed does not mean that you will get into debt anyway, it does mean that you are becoming a risk factor, and financial institutions will begin to take precautions when having you as a customer.
If you are looking for a new credit card, be sure to evaluate your risk exposure and the offers that appear, because in many cases it is convenient to cancel one before requesting the new one, and thus choose the one that offers you the best conditions.