Does having many credit cards hurt your credit ...

Does having many credit cards hurt your credit score

89°
Download
Deal Lieutenant
245
3208
73

Does having many credit cards hurt your credit score
considering the situation
1.spending under 35% of credit limit on each card.(once in every 6 months utilizing full limit)
2. always timely payment
3. I am not talking about the credit hit when we apply for a new card, I am talking about the impact on credit score in a long run if we have many like say 8-10 cards.

if you have any source of information please comment

24 Comments  |  
12 Dimers
Missing
Deal Cadet
50
197
1

When we apply for loan or CC, the cibil will capture our income details. Hence the income vs Loan/credit limit will decide the cibil score. For example, if your income is 10PA and your credit/loan limit is 10PA, you will not get new CC or loan. Other than that, having many cards with less limit is ok. It will not effect your score. But one black mark will put your score down by 50-100 points.

Family in hand %28good%29
Analyst
366
2452
48

I think one should look at list of variables, weightages and mathematical formula of credit score calculation to understand this. Formula and approach and even data supply is common across all credit rating agencies.

Given that variables with top weightages include timely payment and limited utilization, if these are taken care of i eould think there should not be much impact logically even with 10-20 cards. If i m rating personally, i may actually give higher score to somebody having 20 cards and flawless payment track record even with 50%-75% utilization. More imp in all this could be a subjective factor like “adverse remarks” by banks supplying data.. 🤔

Download
Deal Lieutenant
245
3208
73
ramadesidime wrote:

When we apply for loan or CC, the cibil will capture our income details. Hence the income vs Loan/credit limit will decide the cibil score. For example, if your income is 10PA and your credit/loan limit is 10PA, you will not get new CC or loan. Other than that, having many cards with less limit is ok. It will not effect your score. But one black mark will put your score down by 50-100 points.

I may be wrong but I completely disagree

1. How come CIBIL know my income ?
2. upto which I have read Cibil score depends on 3-4 factors and no where I found any mention of income criteria, there are other criteria for calculation of score like timely payment,credit utilization etc.

Download
Deal Lieutenant
245
3208
73
rpal wrote:

I think one should look at list of variables, weightages and mathematical formula of credit score calculation to understand this. Formula and approach and even data supply is common across all credit rating agencies.

Given that variables with top weightages include timely payment and limited utilization, if these are taken care of i eould think there should not be much impact logically even with 10-20 cards. If i m rating personally, i may actually give higher score to somebody having 20 cards and flawless payment track record even with 50%-75% utilization. More imp in all this could be a subjective factor like “adverse remarks” by banks supplying data.. 🤔

yes that is what I concluded but few people told me otherwise so I created a post here because I was not able to find 100% accurate info online specifically about number of cards limit

Untitled 1
Deal Lieutenant
473
3465
91

If you have already acquired 10 credit cards then your CIBIL score won’t take anymore hit because of you managing high number of cards. They don’t care about it at all as long as your credit utilization ratio is low and you pay your bill on time.

Don’t think about it too much. Just use the cards and pay the bill on time.

Download
Deal Lieutenant
245
3208
73
Roushh wrote:

If you have already acquired 10 credit cards then your CIBIL score won’t take anymore hit because of you managing high number of cards. They don’t care about it at all as long as your credit utilization ratio is low and you pay your bill on time.

Don’t think about it too much. Just use the cards and pay the bill on time.

exactly what my thinking is grinning

Untitled 1
Deal Lieutenant
473
3465
91
Expand
SARDARKHAN wrote:

exactly what my thinking is grinning

Credit bureaus are very open about their methodology all over the world. They don’t exactly share their algorithms or how much weightage they give to each of the factors but they let us know what are the most important ones. Because they want us to keep a good score. They are not earning by keeping us in dark or us having low score.

Download
Deal Lieutenant
245
3208
73
Expand
Roushh wrote:

Credit bureaus are very open about their methodology all over the world. They don’t exactly share their algorithms or how much weightage they give to each of the factors but they let us know what are the most important ones. Because they want us to keep a good score. They are not earning by keeping us in dark.

absolutely right
thanks for the input

Missing
Deal Cadet
83
328
17

Have 16 cards, no effect on cibil, only when there is a new enquiry for loan or new cc 10-15 point get reduced and restored subsequent month

Download
Deal Lieutenant
245
3208
73
karanoshan wrote:

Have 16 cards, no effect on cibil, only when there is a new enquiry for loan or new cc 10-15 point get reduced and restored subsequent month

thanks for your insight smile
if its fine for you can you tell your cibil score

Screenshot 2019 05 18 10 53 14 876 com.google.android.gm
Deal Cadet
2
754
9

Ontimepayment/creditutilization is major factor. Age of card medium factor. No of cards low factor.

Download
Deal Lieutenant
245
3208
73
JaiKrish1031 wrote:

Ontimepayment/creditutilization is major factor. Age of card medium factor. No of cards low factor.

no. of cards factor
can you please give some more info
like positive or negative impact
and also source if possible

Missing
Deal Newbie
66
85
2

No of cards does not matter, but let me tell you one important thing.
Should your unsecured credit utilization be 30% (across credit cards,personal,education)more than your emi paying capacity(both secured and unsecured), it is going to affect negatively

Screenshot 2019 05 18 10 53 14 876 com.google.android.gm
Deal Cadet
2
754
9
Expand
SARDARKHAN wrote:

no. of cards factor
can you please give some more info
like positive or negative impact
and also source if possible

https://cdn0.desidime.com/attachments/photos/578833/original/Screenshot_2019-08-03-21-42-02-159_com.dreamplug.androidapp.png?1564848828
As per CRIF: Having too many cards is positive. But applying too many cards in short period of time will be a negative impact. You can check your credit report with impacts in cred beta app.

Download
Deal Lieutenant
245
3208
73
Expand
JaiKrish1031 wrote:

https://cdn0.desidime.com/attachments/photos/578833/original/Screenshot_2019-08-03-21-42-02-159_com.dreamplug.androidapp.png?1564848828
As per CRIF: Having too many cards is positive. But applying too many cards in short period of time will be a negative impact. You can check your credit report with impacts in cred beta app.

yes I have also found that having more cards have a positive impact
yes they do negatively impact while applying but that is for a short term

special thanks for the source grinning

Lord of love radha and krishna by parth27 d5gnfyw %281%29
Deal Subedar
195
2431
32

Completely depends on person to person, I personally feel multiple application in short span also dose not affect the score (cibil) most bank don’t enquire with multiple agency,

Thumbimgcrop 1462462871438
Deal Cadet
154
785
12
Expand
JaiKrish1031 wrote:

https://cdn0.desidime.com/attachments/photos/578833/original/Screenshot_2019-08-03-21-42-02-159_com.dreamplug.androidapp.png?1564848828
As per CRIF: Having too many cards is positive. But applying too many cards in short period of time will be a negative impact. You can check your credit report with impacts in cred beta app.

Which app bro?

Screenshot 2015 08 04 16 52 41
Deal Subedar
93
2395
31

On an Average, American adult holds 2.3 CREDIT CARDS
That is fine from the financial institutions Perspective, but that’s not for individuals
Hope you get to hear from credit crisis of USA
Having said that if someone is using them to one’s smartly to earn perks & rewards its fine
But the MENTALITY OF ABUNDANCE is a blessing in disguise especially in the MATTER OF……

Hope the link would clear your doubts
this article is India specific
https://www.mymoneymantra.com/blog/6-benefits-o...

https://www.hdfcbank.com/personal/learning-cent...

Missing
Deal Subedar
255
2795
36

time line is also important.
going for multiple cards within a very short period of time will have a negative impact for 12-18 months. after that, as long as you pay in full, never default and use the cards in moderation, they will actually help get a better score. the longer you hold the cards, the better would be the score.

Screenshot 2019 05 18 10 53 14 876 com.google.android.gm
Deal Cadet
2
754
9
Expand
ItachiUchiha wrote:

How to get it

It’s for selective users. Once cred selects you you will get an option in your app to join their beta program. Also burn 1000 coins to get premium theme/look to the new beta version app.

Missing