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.
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Sludgeyy@lemmy.world 9 months agoYou want a ton of cards to get good credit
5% is a lot bigger than 1%
Rewards add up
MrScottyTay@sh.itjust.works 9 months ago
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
MrScottyTay@sh.itjust.works 9 months ago
Good point, I’ll consider it in the future
bob_wiley@lemmy.world 9 months ago
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
bob_wiley@lemmy.world 9 months ago
Sludgeyy@lemmy.world 9 months ago
I’ve always found it difficult to increase the credit limit on cards I have had.
My first card started at 400, and then after a while, I finally got approved for a credit line increase, and it went to 1000.
A couple of months later, I opened a new bank account and got their credit card. I had like a 15k credit line at the start.
I’ve never asked for a credit line increase again
However, add on some more cards, and now I have a hefty credit line
The best thing about getting a new card is the rewards and perks.
For example, I just got a new card with 0% apr for 15 months. I get to borrow money conveniently for over a year while making interest on it. I get to keep my money in my investment portfolio while making interest the whole year.
More cards with higher credit lines means I can spend more during that 15 months while not affecting my credit score. It keeps credit utilization low.
Yeah, credit cards are easy to abuse. You should always be able to pay off a credit card if need be. You shouldn’t be overspending. Emergencies unfortunately happen, but unless you have the money, you shouldn’t be swiping the card. Treating is like a debit card is the best policy.