I’ve written about the common misconception that applying for credit cards hurts your credit score.
Continue reading: Does Closing Credit Cards Hurt Your Credit Score?
Share your questions, experiences, and thoughts below.
I get this comment -
Too many accounts with balances
FICO® Scores consider the total number of accounts a consumer holds with balances, including credit card balance amounts that appear from the most recent account statements—even if that balance was paid off. Your score was impacted by having too many accounts with balances.
I am talking about maybe 10 CC which get paid off daily, which have very high credit limits with balances less than $100, and some have minus balance. Yes - even a negative balance counts a balance. Appears that even if a CC is used once for say $20 and immediately paid off it still counts and a minus $50 balance as well - which you can't clear other than charge more.
Am I reading this right?
You have 10 credit cards you pay off *daily*?
What could possibly motivate that?
I haven’t done any research on the accuracy but AMEX shows your credit score and has a “what if…” functionality that simulates the effect on your score based on a predefined set of actions you may take. One option is “what if i close my oldest credit card?” According to their simulator, at least for my situation, it has almost no effect.