is it true that having many credit card decreas...

is it true that having many credit card decreases credit score ?

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is it true that having many credit card decreases credit score ?
and if it indeed true how many we should have ideally for a good score
I got my new cc and in the booklet it is written so, previously I thought having more cc have a good impact on the credit score

pls clarify anyone who have idea

ps-
I will only use 30% of my credit limit
I pay all my dues on time
cred have that experian score in which it is shown as the more acc you have(cc, loan etc.) the more your score is

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No having many credit credit cards does not affect your score . but applying for new CC after CC within short frequency shows that you are credit hungry that affects your credit score if the bank make hard inquiry to your CIBIL account .

*closing your exisiting credit card affect your score.

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Puchka wrote:

No having many credit credit cards does not affect your score . but applying for new CC after CC within short frequency shows that you are credit hungry that affects your credit score if the bank make hard inquiry to your CIBIL account .

*closing your exisiting credit card affect your score.

I always take a minimum gap of 6 months when applying for a new card
is it enough ?

A2z1
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More Cards means More Credit
More Credit may lead to More Underutilized Limit
which shows up as your less utilization of limit
This shows you are not credit hungry
So this might impact

Now consider reverse scenario
If you use most of your limits frequently that will have reverse impact

Very low or very high usage leads to some impact
But that’s not alone factor
Timely Payment & other factors do matter

One can hold 5-7 cards without much worry, even more

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A2Zdeals wrote:

More Cards means More Credit
More Credit may lead to More Underutilized Limit
which shows up as your less utilization of limit
This shows you are not credit hungry
So this might impact

Now consider reverse scenario
If you use most of your limits frequently that will have reverse impact

Very low or very high usage leads to some impact
But that’s not alone factor
Timely Payment & other factors do matter

One can hold 5-7 cards without much worry, even more

so my rule is to not spend more than 30% of the card limit except any special case(like once or twice in a year)
so if I am under utilizing my credit limit then if there is no increase in my credit score at least it will not decrease my score, right ?

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SARDARKHAN wrote:

so my rule is to not spend more than 30% of the card limit except any special case(like once or twice in a year)
so if I am under utilizing my credit limit then if there is no increase in my credit score at least it will not decrease my score, right ?

1.true
2.true

A2z1
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SARDARKHAN wrote:

so my rule is to not spend more than 30% of the card limit except any special case(like once or twice in a year)
so if I am under utilizing my credit limit then if there is no increase in my credit score at least it will not decrease my score, right ?

Not as such
Not using card might impact in a way that your credit score won’t rise
If you use steadily it rises but as you are not using it much so score won’t rise
So usage by you is proper but don’t expect Credit Score to go up because of that

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SARDARKHAN wrote:

I always take a minimum gap of 6 months when applying for a new card
is it enough ?

yes . 6 months minimum

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A2Zdeals wrote:

Not as such
Not using card might impact in a way that your credit score won’t rise
If you use steadily it rises but as you are not using it much so score won’t rise
So usage by you is proper but don’t expect Credit Score to go up because of that

yes if it will not increase its no problem
it should not decrease that is the only concern

thanks smile kg

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Puchka wrote:

yes . 6 months minimum

thanks for the info smile kg

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Few things which will impact your credit score -

  • Payment History – High impact on credit score. Timely payment helps a lot.
  • Credit Card Utilization – High impact on credit score. If your credit card utilization is more than 50%, it affects your score. Increase your credit limit, if possible, to keep your utilization percentage low.
  • Age of Credit – Medium impact. Duration since you are having a loan/credit card.
  • Number of accounts – Low impact. More the loan/credit accounts, better the score.
    Hope this helps.
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Puchka wrote:

yes . 6 months minimum

What if we apply 1 or 2 or max 3 Card at 1 shot?

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Puchka wrote:

No having many credit credit cards does not affect your score . but applying for new CC after CC within short frequency shows that you are credit hungry that affects your credit score if the bank make hard inquiry to your CIBIL account .

*closing your exisiting credit card affect your score.

do you work in the field or is it guesstimate only?

this “hard enquiry” is some formal thing? (where one can, bank can, pay and get specific matrices of a person?)

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On-n-Off wrote:

Few things which will impact your credit score -

  • Payment History – High impact on credit score. Timely payment helps a lot.
  • Credit Card Utilization – High impact on credit score. If your credit card utilization is more than 50%, it affects your score. Increase your credit limit, if possible, to keep your utilization percentage low.
  • Age of Credit – Medium impact. Duration since you are having a loan/credit card.
  • Number of accounts – Low impact. More the loan/credit accounts, better the score.
    Hope this helps.

age of loan: even housing or education loan? which usually might have longer tenures.

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_One_Miller_ wrote:

What if we apply 1 or 2 or max 3 Card at 1 shot?

it will impact your credit score, when we apply for cc bank checks the credit score and that creates a hard inquiry which decreases our score for a short term
and if no cc is approved then the cibil degradation will go in vain

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jakhotia.deep wrote:

age of loan: even housing or education loan? which usually might have longer tenures.

Ha ha. In a way, yes.

Hope we agree that longer tenure of credit card held by us is a positive contributing factor to credit score!!

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SARDARKHAN wrote:

it will impact your credit score, when we apply for cc bank checks the credit score and that creates a hard inquiry which decreases our score for a short term
and if no cc is approved then the cibil degradation will go in vain

@SARDARKHAN Hey can you clear a doubt of mine…i just got my first cc last month and limit of 1.8l was approved…i am hesistant to keep that much active limit as i do not require that much limit as of now so i decreased the limit to 40k..my question is if i use 100% of limit set up by me i.e 40k…will it affect my credit score….

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contact.kartikbutan452 wrote:

@SARDARKHAN Hey can you clear a doubt of mine…i just got my first cc last month and limit of 1.8l was approved…i am hesistant to keep that much active limit as i do not require that much limit as of now so i decreased the limit to 40k..my question is if i use 100% of limit set up by me i.e 40k…will it affect my credit score….

yes it will negatively impact your credit score as it show you are utilizing all your credit limit (credit hungry)

rule of thumb- utilize equal or less than 30% of your credit limit

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I see all myth being promoted online, @contact.kartikbutan452 , I believe you have personally set the limit to 40k via netbanking , and not requested the bank for limit redraft, in that case the agency will consider your original limit set by bank only, so maxing on your internal limit dosen’t affect your score in any way.

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You should be able to spot the lies in youtube videos of get rick quick authors and 17 year old smuck owing a Lamborghini with his business.

Having a higher cibil score mean nothing unless you need to buy a home loan. Which i strongly ask to stay away in current market since over 20 years you pay double the amount as interest while property prices are not inching up and rent cost is half of EMI.

Why you need multiple cards? . Simply because they would have a better cashback offer or Amazon offers.

Never run a business with credit card loan.

If you are buying an appliance and you get a zero interest and zero processing fee then use the loan facility. It will boost your cibil score slightly because you are repaying on time.

Don’t care to check your cibil score unless there is a payment issue and you doubt some lender has put adverse entry.

I had many credit cards but found some bank services bad. SBI didn’t suspend my card for 6 months when I lost my wallet so closed it and discovered it by accident. So chose to cancel a lot of them.
rather I cut the extremely high limit cards in 4 pieces so I NEVER use them for impulse buying.

I use them only to keep them active for good cashback buying on Amazon sale where I just need the number and Cvv.

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AnnamalaiNryaa wrote:

I see all myth being promoted online, @contact.kartikbutan452 , I believe you have personally set the limit to 40k via netbanking , and not requested the bank for limit redraft, in that case the agency will consider your original limit set by bank only, so maxing on your internal limit dosen’t affect your score in any way.

Yes I have personally decreased the limit through netbanking…not requested the bank to do so… @AnnamalaiNryaa @SARDARKHAN Thanks for clearing my doubt smiley

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@SARDARKHAN
have you used sbi simply click?
Now lets suppose you have 80k limit, you transfered 20k to credit card,
Can you use this 1 lakh in one go, while credit limit is 80k only

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Dastro wrote:

@SARDARKHAN
have you used sbi simply click?
Now lets suppose you have 80k limit, you transfered 20k to credit card,
Can you use this 1 lakh in one go, while credit limit is 80k only

I have sbi prime card
but never tried what you are saying
I advice you to pls confirm with cc first as sbi is very strict in levying overlimit charges

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