Does it hurt your credit score to have several credit cards, even if you do not hold any balances?
2007-07-12 01:47:05 · 8 answers · asked by Tammy 2 in Business & Finance ➔ Credit
Iceman is correct.
How many cards you have makes no difference it's how you manage them that counts.
As long as your balances are below 30% of your credit limit and you pay every month on time you will be fine. Debt to credit makes up 30% of your score.
At one time I had 14-credit cars with over $75,000.00 in credit, my score was over 750 (still is) because I always paid them in full.
2007-07-12 03:29:11 · answer #1 · answered by ? 7 · 2⤊ 0⤋
The first person is completely wrong.
The higher the credit limit the better your credit score. It sais that right on your credit report normally. So having several cards, and always paying them on time is better then having 1 card and paying on time. Because your credit limit is higher, and usually your debt ratio is lower as well. Both of those are good for your credit score.
However, with extra cards comes extra responsibility. The more cards you have the greater your chance of getting into some kind of trouble. But as long as you always make payments, and don't rack up cards hear there limit, your score will actually go up the more cards you have.
2007-07-12 09:19:03 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Every time you apply for a credit card, a credit inquiry is made. Each inquiry 'dings' your credit. It doesn't look good to have a lot of inquiries.
Also, since you already have the cards you should use one or two to help build your score up. Use it to buy gas and then pay it off each month. The responsible use of your credit helps to build your score. Cancel the rest.
What they don't want to see are late pays, no pays and balances that remain too high. You have to have some activity though or you don't build your credit up at all.
2007-07-12 08:57:26 · answer #3 · answered by Debbie G 5 · 0⤊ 0⤋
If you have too many revolving accounts verses overall accounts it can hurt your score if balances were to be placed on a majority of them. A number of Installment(auto, home,ect.) loans along with your revolving accounts(credit cards) should keep your score up as long as your debt ratios remain low.
2007-07-12 09:14:39 · answer #4 · answered by JT 2 · 0⤊ 0⤋
Paying your bills on time and the amount of available debt that you have or have access to affect your score. To improve your score be sure to always pay your bills on time and it increases your credit score more to pay your debt off early. Check out the links in the sources section below for more information.
2007-07-12 09:06:48 · answer #5 · answered by Jackson D 3 · 0⤊ 0⤋
Possibly, if there are high limits on the cards. The notion is that you have the opportunity to get yourself deeply into debt by using those cards at some point, even if you are not currently using them.
I recently applied for a Home Depot card for upcoming renovations in my house. The idjits gave me a credit line of $50,000, which I promptly reduced to less than $10,000, since I have ZERO use for a $50K line of credit on one card.
2007-07-12 08:56:08 · answer #6 · answered by acermill 7 · 0⤊ 2⤋
Find very useful info and tips on getting and managing credit cards on http://creditcardmanager.credithelperhom
2007-07-12 09:20:10 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I agree with Ice and Spifi.
2007-07-12 10:46:56 · answer #8 · answered by Anonymous · 0⤊ 0⤋