INSUBCONTINENT EXCLUSIVE:
Your credit score is like a report card for your borrowing history
When you want to borrow money, lenders check this score to see how risky it is to lend to you
A higher score usually means less risk
Now, the big question is, how does having multiple credit cardsimpact your credit score? Well, it's like this: you can have several credit
cards as long as you are careful about maintaining a good credit score.But, here's the catch - if your credit cards are fairly new, your
credit score might be lower
That's because having newer cards brings down the average age of your credit history.Your credit score is calculated using five main
factors, and some of these factors are more important than others.Payment history (35%): This is the big one, carrying the most weight
It's all about how good you are at paying your debts
Having multiple credit cards means you have to keep track of payments for each one
Missing payments can seriously hurt your credit score.Debt-to-credit ratio (30%): This measures how much of your available credit you are
Going over 30% can bring down your score
Having multiple credit cards can increase your total available credit, but it's crucial not to go over that 30% limit.Average age of your
credit cards (15%): The age of your credit cards matters
Having new cards can lower your average credit age, which in turn, can lower your credit score
People with a long credit history tend to have better scores.Types of credit (10%): The variety of credit you have matters too
Lenders like to see a mix, such as credit cards, mortgages, and installment loans
Having only multiple credit cards might not be ideal for your credit score.New credit accounts (10%): Opening a new credit account can
temporarily lower your score
Too many new accounts can signal risk to lenders
So, it's wise not to open too many credit cards in a short time.ConclusionIf you are thinking about getting multiple credit cards, don't get
That could bring down the average age of your credit history, hurting your credit score
If you already have multiple cards, it's better not to close them, as that could increase your total credit and improve your score
Instead, use one or two regularly, keep an eye on payments, check your credit score regularly, and make sure you don't go over that 30%
limit on your credit cards.
