Do many credit cards affect credit score?
With the development of the civilization and the technology of the world, the fact we realize is that
apart from the main needs of humans (food, drink, shelter and dresses) money has came to the first place in all corners. Previously human were living a simple life and they were able to manage their expenses in very few dollars. With the development of technology and civilization, the needs of humans have been increased and they needed more money to survive.
Since people always trying to live a luxurious life, they were always looking for ways to do each and
every thing in a fast and easy way. While considering the old cash transaction system built with cheque
and deposit slips, they felt this is a very slow and looking forward to new methods which are fast and
reliable. So they managed to develop "credit card" which has a uniqueness ability to access your account
from anywhere in the world and make real time transactions day or night.
People used to use this small Electronic card because it is easy to use and only needs a small space of
your wallet and can keep your bank account data which enable you to pay any amount through internet or anywhere without the risk of money being robbed. Because of this easy to use method, currently a single person has a number of credit cards from various local and international banks. They never think about one question. That is "do many credit cards give bad score". By thinking about this concept, my idea is to provide the fact regarding "do many credit cards give bad score".
If a person has a several bank accounts, and these banks offers free credit cards to the particular
person and he/she won't say no to the offer. The reason for that he/she never thinks about the fact on
"do many credit cards give bad score". If they think on the above fact, they will never accept credit
cards from each and every bank where they have invested their money. There are several reasons which
made me to think like that;
Why should I think "do many credit cards give bad credit score"?
01) Is there any additional benefit by keeping five "ten credit cards??? NO
02) Are those credit cards are free?? - It seems like that, But It is not
03) How many credit cards should I Use??? Maximum 3
04) "do many credit cards give bad score" - Yes
Now let me explain what I meant from the above;
Even if you have several credit cards from different banks around the world; they won't give you any additional benefit to you if you use all cards at once. The Only thing it will do it will make you pay to the banks which provided credit cards, than you spent using credit card. So "do many credit cards give bad score"? You will agree with it.
If you think these credit cards are provided for free, then I guess most of time you're in trouble.
Because, with usage of these credit cards (even it's provided free) there will be an interest charged to
the amount which you spent using the credit cards. So At the end of the day, you have paid much more
than you think...
Now think "do many credit cards give bad score"? Why should I limit my credit card
limit to a maximum of three?? After thinking further on the fact of "do many credit cards give bad
score"? You will realize that, you can do all your payments, transactions just using maximum of three
credit cards issued from different banks and it will control your expenses than using ten credit cards
from different banks. If you have ten credit cards, then you have 10 different credit limits and you can
spend as much as you want until you reach the credit limit. You will realize the fact of having multiple
credit cards when you're going to pay the interest of these cards and at that time you will be starting
to think about "do many credit cards give bad score"?
Yes
No
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Comments
Amazing article! I definitely enjoyed reading it, and learned quite a bit...I will refer it to anybody that is curious about the subject matter.
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