• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

w00t! Got yet another CC

Hello, new CC.

Goodbye, good credit rating.




The more credit cards you have, the worse your credit rating gets. Even if you don't ever use the cards, ever.
 
Originally posted by: NuclearNed
Hello, new CC.

Goodbye, good credit rating.




The more credit cards you have, the worse your credit rating gets. Even if you don't ever use the cards, ever.
Click to expand...

Uh, prove it.

KK
 
Originally posted by: KK
Originally posted by: NuclearNed
Hello, new CC.

Goodbye, good credit rating.




The more credit cards you have, the worse your credit rating gets. Even if you don't ever use the cards, ever.
Click to expand...

Uh, prove it.

KK
Click to expand...

I actually can't prove it, but it is something I have been told numerous times when applying for loans, talking to my financial advisor, etc. The rationale is that if you have a large number of cards, even if you normally never use them you have the potential to snap and go on an insane buying spree, thereby putting yourself in enormous debt. Maybe someone can confirm this?
 
Originally posted by: KK
Originally posted by: NuclearNed
Hello, new CC.

Goodbye, good credit rating.




The more credit cards you have, the worse your credit rating gets. Even if you don't ever use the cards, ever.
Click to expand...

Uh, prove it.

KK
Click to expand...

Have you ever applied for a mortgage? That's all the proof you need.
 
Originally posted by: edro13
WHAT CARD?!??!?!?! OMFG I WANT ONE.>>!>!>!@ OH NOESS!!!

ok... seriously... what card is it?
Click to expand...

Bank of America VISA. Got it when I got the new checking account set up here in VA.
I was preapproved because of my L337 credit score.

😎
 
Originally posted by: KK
Originally posted by: NuclearNed
Hello, new CC.

Goodbye, good credit rating.




The more credit cards you have, the worse your credit rating gets. Even if you don't ever use the cards, ever.
Click to expand...

Uh, prove it.

KK
Click to expand...

From The Fool
4. Amount of new credit. Each time you apply for new credit, an inquiry shows up on your report. Red flags start waving when you take on more credit -- or even just apply for new credit -- in a short period of time. This is one area where good habits can work against you. If you prove yourself a reliable bill payer, charge card issuers will be quick to offer additional credit.

Future lenders, however, may not take kindly to all this readily available credit. Some fear you will use it to go on a spending binge, quickly undermining standard calculations for determining how much additional debt you can shoulder. This area of credit management carries a 10% weight on your overall credit score.
Click to expand...
 
Originally posted by: NuclearNed
Originally posted by: KK
Originally posted by: NuclearNed
Hello, new CC.

Goodbye, good credit rating.




The more credit cards you have, the worse your credit rating gets. Even if you don't ever use the cards, ever.
Click to expand...

Uh, prove it.

KK
Click to expand...

I actually can't prove it, but it is something I have been told numerous times when applying for loans, talking to my financial advisor, etc. The rationale is that if you have a large number of cards, even if you normally never use them you have the potential to snap and go on an insane buying spree, thereby putting yourself in enormous debt. Maybe someone can confirm this?
Click to expand...

I've heard the oppsosite concerning credit score. A higher ratio of unused vs. used available credit is better.
 
Melly: Yes, and I still don't have the proof.

KK

Edit: Like what Jzero posted, I've heard that applying for cards/credit will hit your score, but I haven't heard what the second part says about the future lenders.
 
Originally posted by: NuclearNed
Originally posted by: KK
Yes, and I still don't have the proof.

KK
Click to expand...

Uhh... Jzero's link isn't good enough? What do you require? Alan Greenspan making a personal visit to your house?
Click to expand...

as always, it depends.

Having large outstanding credit with little to no balance is a good thing.

The fool.com article was about applying for new credit frequently.
 
Originally posted by: spidey07
Originally posted by: NuclearNed
Originally posted by: KK
Yes, and I still don't have the proof.

KK
Click to expand...

Uhh... Jzero's link isn't good enough? What do you require? Alan Greenspan making a personal visit to your house?
Click to expand...

as always, it depends.

Having large outstanding credit with little to no balance is a good thing.

The fool.com article was about applying for new credit frequently.
Click to expand...

I bolded the part that I bolded for a reason - I was hoping people would read it.
 
Originally posted by: Jzero
Originally posted by: spidey07
Originally posted by: NuclearNed
Originally posted by: KK
Yes, and I still don't have the proof.

KK
Click to expand...

Uhh... Jzero's link isn't good enough? What do you require? Alan Greenspan making a personal visit to your house?
Click to expand...

as always, it depends.

Having large outstanding credit with little to no balance is a good thing.

The fool.com article was about applying for new credit frequently.
Click to expand...

I bolded the part that I bolded for a reason - I was hoping people would read it.
Click to expand...

I gotcha. I was talking about the 30% of your score that deals with accounts in use. That's at little more than 10%?

For example in my case getting more credit actualy improved my score. So I now have 4 revolving accounts with a limit of 50K, instead of 3 with a limit of 35K.

Jumped me up score wise.
 
If any, getting new credit card and carrying no balance will improve your credit utilization %, which help boosting your credit score.
 
Originally posted by: spidey07
I gotcha. I was talking about the 30% of your score that deals with accounts in use. That's at little more than 10%?

For example in my case getting more credit actualy improved my score. So I now have 4 revolving accounts with a limit of 50K, instead of 3 with a limit of 35K.

Jumped me up score wise.
Click to expand...

There are lots of factors, especially your income. If you are pulling in $20k a year, a total available credit of $50k is going to make a mortgage broker somewhat skittish. If you are pulling in $90k/year, the lenders won't be so concerned.

It might not kill your credit score if you have a ton of available credit, but everyone should at least be aware that it does have an impact.
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top