Why Having Too Many Credit Cards Can Hurt Your Credit Score (cont.)
Contributed by Kristy George
How credit cards can help your score
Do not get the wrong idea. You must have some sort of credit to have a credit score, so credit cards are not all bad. The best way to help your credit score is by getting a line of credit and paying off the balance as you charge them. That keeps your credit line open and shows you have the ability to repay the credit extended to you. Having a few department store credit cards and maintaining a good history will not hurt your score.
Your credit score is not only determined by your credit card history but by all your credit history. This includes loans for cars, homes, or personal use. Your credit score fluctuates as your credit changes. This can be effected by credit card balances changing, new credit cards being opened or closed, and how well you pay everyone. Always pull your report a few months after major changes such as opening or closing credit cards to make sure your credit report reflects them properly.
This will also help you keep in the know of your credit score.
