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ScoobyDoo27@lemm.ee 9 months agoDoesn’t matter to me. I have like 10 different credit cards to get the best cash back depending where I’m shopping. Currently the best I get at Microsoft would be 2% so this is a pretty sweet card.
bob_wiley@lemmy.world 9 months ago
Sludgeyy@lemmy.world 9 months ago
You want a ton of cards to get good credit
5% is a lot bigger than 1%
Rewards add up
bob_wiley@lemmy.world 9 months ago
[deleted]Sludgeyy@lemmy.world 9 months ago
My credit score is over 800 and I have 8 cards plus some store ones.
Getting more cards helps your credit score in the long run
No you don’t have to have a lot of cards to get a good credit score
But it does help
MrScottyTay@sh.itjust.works 9 months ago
Credit scores usually go down with every new card you get, it only goes up when you’ve been stable with current card(s) (usually for, house etc (usually for 1-3 years range). Cause then they know you’re reliable with money in your current life situation.
Sludgeyy@lemmy.world 9 months ago
Getting a new card will temporarily drop your score a few points.
If you’re like me that charges everything to a credit card, then you need a lot of available credit to keep the credit utilization low. You want it below 10%.
High credit utilization is going to drop your score more than opening a new card.
Say I have 1 card that has 15k limit. If I spend 10k on it. I have a 66% credit utilization. My score would be horrible.
Now, if I get 7 cards and each have 15k limits. If I spend 10k on them then I have less than a 10% credit utilization and my score would be good.
Can I get 1 or 2 cards that have credit limit of 105k. Yes. But I have found increasing limit is harder than getting a new card.
With a new card you can get 0% apr which is free borrowing of money for 12 to 15 months.
You can get a welcome bonus which are usually very good.
And you can set it up so that you might be getting more rewards like 5% cash back on dinning or other things that another card might not give.
Getting more cards has it’s advantages
SeriesOfTubers@lemmy.world 9 months ago
Yes but if you need 1500 points at minimum before you can cash out, that means you aren’t seeing any cash back until you’ve spent $300 at Microsoft. The payout might be bigger, but you have to wait a lot longer to get it.
If that’s worth it for you, that’s great! But if I’m spend $60 at Microsoft a few times a year, I might rather just have $1.20 next month that I can spend on many things than $3.00 in two years that I can only spend at Microsoft.