Credit cards are a convenient financial tool and handy option to use when you don’t have sufficient funds in your wallet. It can be utilised to make big-ticket purchases such as buying a TV or financing your trip.
When will multiple credit cards affect your credit score: Having multiple credit cards does not necessarily mean your credit score will be impacted severely. The credit score is dependent on how you use the credit cards rather than the number of credit cards.
- One must ensure that there is no delay of payment of any credit card even for a day as it can have an impact on your credit history.
- Don’t overutilize the multiple credit cards and do not exceed the total debit-credit ratio to more than 30% as it may affect your credit score.
- If you close your credit card in a short time, your credit score will become less. Closing credit card accounts can lower your total credit limit and debt-income ratio.
- Pre-approved credit card offers can be a significant temptation to get a new credit card. If the new credit card increases the credit and lowers the debt-income ratio, it can be an excellent option to take it.
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