I'm thinking of getting another credit card. I have three already, but they have either have 0 balances or low balances. Would another credit card overextend myself in the eyes of the credit bureaus?
2006-07-16 13:48:39 · 6 answers · asked by leedogg1981 3 in Business & Finance ➔ Credit
35% - Your Payment History
30% - Amounts You Owe
15% - Length of Your Credit History
10% - Types of Credit Used
10% - New Credit
First of all, 4 cards is not a lot. I have like 14. Its not hurting me, but it really isnt neccesary either :) 4 is reasonable.
I know from personal experience that what does hurt your score is carrying high balances. I watch my reports and 3 scores very carefully and know exactly what changes my score. Credit card usage has a big effect on your score. Carrying high balances is bad. Having many cards WITH BALANCES is bad.
Debt to income ratio has nothing to do with your score. How much money you make isnt even on your report. Its a seperate issue.
Just keep your balances below 35% (preferably 15% or less). I pay off most of my cards every month. Pull your own scores from myfico.com (doesnt count as an inquiry when you pull your own).
coupon code cppsavings gives you each score for 11.96 instead of 14.95.
BTW, what will drop your score is the inquiry from applying for the new card and opening a new account. Not a huge drop usually but it will be a temporary drop. Ive seen it everytime I open a card. But its not a big deal and recovers quickly.
Good luck!!
Read this page:
http://homebuying.about.com/cs/yourcreditrating/a/credit_score.htm
2006-07-16 23:04:15 · answer #1 · answered by Bobbie 3 · 0⤊ 0⤋
No one knows (except the credit bureau) how the credit score is calculated. If you have three credit cards with no balance - as long as they are major credit cards like Visa or Mastercard - I would not get a new one. Your credit score gets reduced anytime someone checks your credit, your late or your debt to income ratio is low. If you have three with a zero balance it looks like you are doing pretty well.
I would just stay as you are - you could charge at least $50-$100 each month and then just pay the bill when it comes in - that will make your credit even better and show that you are not a credit risk. Once you do this for a year, your current credit cards will most likely raise your limit and/or lower your interest rate.
2006-07-16 13:55:45 · answer #2 · answered by totalstressor 4 · 0⤊ 0⤋
Remember the only requirement to answer questions on here is to sign up for an account.
Having more credit cards than you need or use even if they have zero balance goes against you. The creditors look at them as potential debt and they may throw your debt to income ratio in the toilet.
2006-07-16 14:06:18 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Your credit score is calculated by your credit balances on your credit cards and by the number of accounts you have opened. Also by the number of inquiries from creditors for you credit report.
2006-07-16 13:53:12 · answer #4 · answered by Thomas G 3 · 0⤊ 0⤋
Basically, they lok at how long you have been buying on credit, how much of the monthly balance you pay, and how well you pay. If you skip payments, don't expect a high credit score.
2006-07-16 13:55:39 · answer #5 · answered by WC 7 · 0⤊ 0⤋
yes the credit card companies just want your money a person with bad credit can apply and receive multiple credit cards
2006-07-16 13:56:24 · answer #6 · answered by derrick d 2 · 0⤊ 0⤋