Ravi Shankarappa wrote: I understand having too many credit cards is a liability when looking for mortgage. (yes I am in USA)
Actually, its not really the number of cards that is a bad thing (tm).
Its the sum of the unused credit limits across all cards, lines of credit, car loans, etc.
A mortgage broker wants you to owe money only to them, no one else.
If you have outstanding balances on credit cards, loans, etc. those are all technically liabilities for you. When you have unused credit limits, its not technically a liability for you today, but could be in the future.
Remember, a banker is a guy who lends you an umbrella on a sunny day, and is happy to let you keep it as long as it is sunny. As soon as it starts to rain, they want it back.