| Grimes said: If you want good credit, don't open new credit cards up just to save a few bucks. Instead, buy a card with good terms, hold a balance occaisionally, and pay in time. Like others have said opening new cards reduces your score and the open line of credit from additional cards also lowers your score. I have owned 3 credit cards in my life and I have an 800 credit score. I didn't get such a high rating by getting a new credit card every time I wanted to save a few bucks. And I have gotten hundreds of dollars in cash back over the years from my purchases. Just from paying my rent I get nearly $100 cash back each year. |
Just checked my credit score and it's over 800 which is impressive like yours. But I do open and close credit cards a lot and I'm seeing no impact. Because every year, of course around christmas, I will buy a lot of stuff from different stores. And they offer 10% discount on the purchase for opening a credit card account. I always do this to save on the purchases, and then pay them off and close the cards the next month. My wife does it in her name too if we've already used the store that christmas. And her score is just under mine but still over 800. That's the only time I do that and it's with practically every store that makes that offer. And I agree with that person talking about the other benefits like air miles, cash back, etc. We have another card that we use and pay off each month just for hotel points with Hilton and we benefit good on those when we travel. And discover we pay off monthly and use for a lot just for the cash back bonus (which isn't much sometimes but is better than nothing). Credit cards can be good. Just not in the hands of a financial infant with no knowledge of the system's advantages. That's just a bad combination to a lifetime of debt and bankruptcy.
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