Does it hurt your credit rating to have multiple credit cards with zero balance?

Answer 1

Not necessarily. It can actually HELP your credit rating in certain circumstances. It can help your debt-to-credit ratio, which is how much available credit you have versus how much you are using. Keeping card accounts open that have positive histories can help, too.

Answer 2

It isn't the number of cards but the total available credit limit that affects your score. At some point, having too much would negatively impact your score but we're talking very big numbers.

The problem with a stack of credit cards that you don't use is that you still have to secure the cards and monitor all those statements. I recommend that you keep the two oldest major credit cards without annual fees. Only keep store or gas charge cards if you have some special reason. Otherwise, close all the extra cards.

Yes, closing the cards will ding your credit score but if you keep 0 balances on the ones you keep, that score will rebound very quickly.

Answer 3

I know that my score fell 20 or so points when I opened five credit cards last year (for the $100 each sign up bonus), but that could be that it is new credit. I think new credit hurts more than additional unused balance.

Answer 4

Yes, it does hurt your credit rating to have multiple cards open with a zero balance. It hurts your credit rating because you have the ability to charge on an open account so you're a higher credit risk that if you did not have open zero balance accounts.

Answer 5

NO, NO, NO.

The key here is zero balances. Having a large credit limit and not using (maxing them out) shows that you know how to use credit.

If your total line of credit is 5,000 on one card and you use it to the max each month, but pay it off each month, hurts you since you are using 100% of your available credit.

If you have 5 cards with $2,000 each and only use 1/2 the available credit on each,, this is better.

You should use each card, each month and NOT charge more then 30% of the credit limit. And then pay it off each month.

NOTE: yes, your credit score will drop if you open to many accounts in a space of time.

Answer 6

nope it does not hurt your credit rating to have multiple credit cards with zero balance

RE:
Does it hurt your credit rating to have multiple credit cards with zero balance?
Does it hurt your credit rating to have multiple credit cards with zero balance?

Answer 7

if these accounts are new, you may take a hit of 10 or 20 points. In the long run, however, you will gain much more. 30% of your credit score is based on the ratio of outstanding debt to available credit. In your case, you have lots of available credit and no debt. Your ratio is excellent, which means your credit score will go up. Having availbale credit and not using it makes you look great and financially secure...a plus where fico is concerned