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MrScottyTay@sh.itjust.works 9 months agoCredit 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
MrScottyTay@sh.itjust.works 9 months ago
Good point, I’ll consider it in the future