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.
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.
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.
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
Good point, I’ll consider it in the future