Are Too Many Credit Cards Bad? Will It Hurt My Credit Score? | Aura скачать в хорошем качестве

Are Too Many Credit Cards Bad? Will It Hurt My Credit Score? | Aura

Is it bad having too many credit cards? Find out: https://www.aura.com/learn/is-it-bad-... How many credit cards are too many? Ok, listen to this. According to Experian the average American has 4 credit cards. You probably have at least 2 active credit cards, and since you clicked on this video - you probably the same question that most of us have. In this video you'll learn how your credit score is determined, how too many credit cards can benefit or hurt your credit score and how to decide if it’s time for a new credit card account. So let’s get the big question out of the way. Unlike popular belief, the number of cards alone DOES NOT affect your credit score. Depending on the state of your finances, 4 or more credit cards can be beneficial or it could be hurting your credit score. Your credit score is determined by 5 factors. These are the factors, in order of importance: 1. Payment History. Creditors want to ensure you’ll pay your bills on time, so this is easy to manage. Pay on time, it’s the most important thing to maintain good credit. 2. Credit Utilization. This is the ratio of available credit, compared to the amount you’ve spent and it should never be more than 30%. That means if your credit card has a credit limit of $10k, you should always aim to put no more than $3k on it each month. 3. Credit History. Your credit score ages like fine wine. So get a credit card early and make sure you follow the guidelines from this video. 4. New Credit. If you submit too many new credit card applications at once, it’s likely that your score will be negatively impacted, because companies will get suspicious. 5. Credit Mix. The more credit accounts you are able to handle, the better your score. A variety of credit accounts could be a mix of credit cards, mortgage loans, student loans and auto loans. Once again, make sure that you pay everything on time. Now that you know how your credit score is determined, you can see how the number of credit cards can affect it. For example, let’s say that you take full advantage of the reward system of your cards. You might be saving a lot of money. And as long as you pay on time and keep a low credit utilization, this can boost your credit score! On the other hand, applying for too many credit cards in a short period of time and managing them poorly, will most definitely hurt your score. Unfortunately, having credit cards with zero balance might be bad for you as well. If your credit cards have a zero balance for several years due to inactivity, your credit card issuer might stop sending account updates to credit bureaus. With less activity on your report, companies will have trouble understanding if you are a responsible credit borrower. In the end, don’t get credit cards for the sake of it, or those free miles! Make sure that you are taking advantage of the benefits of the card and that you can maintain a healthy utilization ratio. This leads us nicely to the final question, how to decide if it is a good time to get a new credit card. Let’s say that you’ve just received a message advertising a very appealing credit card program. Before you start jumping around in excitement from the perks, answer these questions: Will my credit score take a hit after submitting this new credit card application? Will I actually use the rewards and benefits this card offers? Am I able to pay off this card in a timely manner to maintain a low credit utilization? If you feel confident after answering these questions and if you haven’t opened another credit account in the past six months, then maybe it is a good opportunity for you. Finally, I want you to remember that the more cards you have, the harder it is to stay safe from scams. Scammers might try to make unauthorized purchases using your card details and it might be difficult to keep track of too many accounts. An easy solution to this would be to use a service like Aura, that Keeps track of your credit history and warns you if there is suspicious movement in your bank accounts. You can try Aura for free here: https://buy.aura.com/free-trial Timestamps: 0:00 Intro 0:55 How your credit score is determined 2:40 How many credit cards can benefit or hurt your credit score 3:15 When should you open a new credit card account #creditcardfraud #creditscore