How Does The Number Of Credit Cards I Have Influence My Credit Score?

How Does The Number Of Credit Cards I Have Influence My Credit Score?

The number of credit cards you have, and the way you utilize them, has a notable influence on your credit score.
Payment history
The payment history influences about 35% of your credit score. This implies that your history of making on-time, or delayed, payments has the sole major effect on your credit score. Paying off your credit card dues on time will progress your score, whereas delaying the payments by 30 days or more past your due date will harm it, regardless of how many cards you have.
Amount of debt The amount of debt you are obligated also plays a key role in defining your credit score, this factor accounts for 30% of your credit score. Holding more credit cards can relief with this factor, as you may maintain a healthy credit-utilization ratio.
Credit-utilization ratio proportionate your credit limit to that of the amount you used. The less you are using, the healthier it is for your credit score. If you have more cards, your available credit limit is more, resulting in handling credit-utilization ratio.
Length of credit history
The length of your credit history influences about 15% of your credit score. Of course, taking multiple credit cards in a short span of time can hurt your score. Conversely, your score increases if your sources of credit are older.
New credit Opting for new credit accommodates 10% of your credit score. This, interns means going for too many credit cards in a short span will reduce your credit score.
Credit mix Your mix of credit accounts (EMIs to retail accounts) for 10% of the credit score. If credit cards make up excessive of your credit mix — you hold several credit cards — your score could take a small hit.

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