Lance asked in Business & FinanceCredit · 1 month ago

Credit cards and credit scores ?

When I got my first credit card I was worried. When I got my 2nd one I was even more worried than the first one. But I did good. I only use the first one I got and pay it off rite away and don't use it much. I have seen my credit score go up and up now I was reading. Now I dont use my second card at all cuz I know closing it will hurt my score. I would like to get one more one that has to do miles. Like for every 2$  you spend you  get one mile. All my cards have no annual fee. I would prob switch back and fourth between the miles card and the card I always use. 

( my question is will it hurt my credit or credit score or fcio score if I get a 3rd one?) I think I have been good with credit have not maxed any cards out only used when had to and paid them off with in that same month of using it. 

3 Answers

Relevance
  • Anonymous
    1 month ago
    Favorite Answer

    Applying for a new card hurts your score - applying for anything hurts your score.  This is minor and usually recovers quickly.

    If approved and you get another card - the average age of your accounts will go down.  This will hurt your score.  This also is minor and usually recovers fairly quickly.  (part of your score is based on the total age of your accounts divided by the number of accounts that you have - a new account would lower that average.)  This is also the reason you should never close your oldest account.

    Now - on the GOOD SIDE - having another card increases your total available credit line.  This means when you do use one of your cards - you can use a little more before you reach the point that using a card hurts your score.  You should always avoid using more than 30% of your available credit line.  That isn't per card - that is per total - so if you have several cards - you look at 30% of the TOTAL of those cards as the amount you could use before it actually hurts your score.

    Personally - I prefer cash rewards cards over mileage rewards.  But if you are going to have a rewards card - then it should be the main one you use to get full advantage of the rewards.  Using the other cards at least once every six months will keep them active.

    I have started using my cash rewards card to pay for things I buy anyway and then I use the money that I would have spent on those other items to pay my credit card bill.  I haven't paid any interest and I am averaging about $20 to $30 per month in rewards just for using the card on things I would have bought anyway.  (groceries - phone bill - cable bill - gas in my car.......anything that I can put on the card.)

    Use any kind of rewards card wisely and you can earn the maximum rewards without ever paying interest on the account.  

  • 1 month ago

    Yes, it will hurt your score.  First, applying for a card always hurts your score (whether or not you actually get the card).  Second, having a new card will mean that the average age of your cards will be lower, and that also hurts.

  • Anonymous
    1 month ago

    You need a card that pays at least 1.5-2 cents per dollar spent.

    Applying for credit is a hard pull and a hard pull dings your score for 12 months. (starting in a month and lasting 12 months an extra  months delay is common so 13-14 months total)

    As for unused cards, try to use every card at least every 6 months so they don't close it on you.  Even a dollar or two is fine.

    Never use "cuz" when writing anything.

    Now, after a year, your score will no longer be harmed by the hard pull.

    I use a 2% card for everyday spending and I also have chase and discover which pays 5% on rotating categories but only 1% on other stuff.

    I need a second 2% card because the one I have gives an occasional 1% bonus but its only after your usual spending.  Like last year, there was a 45 day period where I got an extra 1% on spending over $400. But I did not spend over $400.

Still have questions? Get your answers by asking now.