but get too many cards or carry balances and it starts to lower your score.
To learn more and how to improve your score read on…
Consumer credit scores clearly take into account the “mix” of credit types and items consumers have on their reports. This part of the credit score is affected by what kinds of accounts a consumer has and how many of each.
The bureaus will score someone higher, for example, if they have an open mortgage, 3 credit cards, 1 auto loan, and a small amount of other open accounts. Low balances and available credit as well as timely payments are also large factors. So having a few cars is beneficial.
But, if a consumer has a ton of credit cards, their scores will be lowered.
If they have several mortgages, their scores will be lower.
Any “unhealthy” account mixes lower their scores.
The preferred number of credit cards appears to be three. This means a consumer will actually have a higher credit score if they have three open credit cards than if they have more or less than three open.
If you have more DO NOT run out and cancel your cards just yet.
Remember, 30% of the score is comprised of balances in relation to credit limit.
So if you have too many, keep your cards open, but focus on having three large balance cards and pay down the balances on time for maximum impact.
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