Is It Good for a Credit Score to Have Multiple Credit Cards?
Author: minute
Posted: Sat Jan 14, 2006 2:01 am
Post subject: Having multiple cards is good or bad for the credit score?
Having multiple cards is good or bad for the credit score?
If you have two cards, one has a 2K CL (credit line), and the other one has a 20K CL, some people think the 2K CL credit card is going to make the credit score lower than having a 20K CL credit card alone.
Any ideas on this?
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Author: Polonius
Posted: Sat Jan 14, 2006 9:45 am
Post subject:
There's no "correct" answer to the question because there are other factors involved and because there are many scoring models being used.
One factor is average credit limit per card. On that factor, you'll do better without the 2k limit card.
Another factor is average utilization per card. Without knowing what balances are carried on each card, no way to evaluate that factor.
Yet another factor is the average time you've had each active card. If you got the 2k card 30 years ago, your score will be better than if you didn't have it. If it's a new card, your score might be improved if you closed it.
The general rule is that you rarely benefit by closing any card. If you have too many from the same issuer, try consolidating them into the card that you got first, or just reallocate the credit limits if possible to the card which offers you the best deal at present.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: mouse
Posted: Sat Jan 14, 2006 8:43 pm
Post subject: Re: Having multiple cards is good or bad for the credit scor
minute wrote:
Having multiple cards is good or bad for the credit score?
If you have two cards, one has a 2K CL (credit line), and the other one has a 20K CL, some people think the 2K CL credit card is going to make the credit score lower than having a 20K CL credit card alone.
Any ideas on this?
I don't have any credit limits THAT LOW
($2,000)
Author; QikPass
Posted: Sun Jan 15, 2006 10:42 am
Post subject:
Is that really a constructive answer? or do you just try to use every opportunity on this forum to put down others with lower limits who are trying to improve and brag about your enormous limits?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Sat Jan 14, 2006 2:01 am
Post subject: Having multiple cards is good or bad for the credit score?
Having multiple cards is good or bad for the credit score?
If you have two cards, one has a 2K CL (credit line), and the other one has a 20K CL, some people think the 2K CL credit card is going to make the credit score lower than having a 20K CL credit card alone.
Any ideas on this?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Polonius
Posted: Sat Jan 14, 2006 9:45 am
Post subject:
There's no "correct" answer to the question because there are other factors involved and because there are many scoring models being used.
One factor is average credit limit per card. On that factor, you'll do better without the 2k limit card.
Another factor is average utilization per card. Without knowing what balances are carried on each card, no way to evaluate that factor.
Yet another factor is the average time you've had each active card. If you got the 2k card 30 years ago, your score will be better than if you didn't have it. If it's a new card, your score might be improved if you closed it.
The general rule is that you rarely benefit by closing any card. If you have too many from the same issuer, try consolidating them into the card that you got first, or just reallocate the credit limits if possible to the card which offers you the best deal at present.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: mouse
Posted: Sat Jan 14, 2006 8:43 pm
Post subject: Re: Having multiple cards is good or bad for the credit scor
minute wrote:
Having multiple cards is good or bad for the credit score?
If you have two cards, one has a 2K CL (credit line), and the other one has a 20K CL, some people think the 2K CL credit card is going to make the credit score lower than having a 20K CL credit card alone.
Any ideas on this?
I don't have any credit limits THAT LOW
($2,000)
Author; QikPass
Posted: Sun Jan 15, 2006 10:42 am
Post subject:
Is that really a constructive answer? or do you just try to use every opportunity on this forum to put down others with lower limits who are trying to improve and brag about your enormous limits?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 6:27 PM
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