• taiyang@lemmy.world
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    6 months ago

    Key word is “a”, as in one.

    Although you generally are solid in 2 to 4 range, the more important thing as it turns out is (aside from prompt payments) to make sure the credit limit is high. Those store cards with 300 limits are looked down upon.

    • finestnothing@lemmy.world
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      6 months ago

      A big ding to your credit score itself is actually a low amount of lines of credit, I think 10+ is considered “good” which is ridiculous

      Apparently I was wrong, and learned something new today. Your score comes from:
      35% - payment history (everything paid on time, etc)
      30% - amount owed
      15% - age of credit history
      10% - how many new lines of credit
      10% - credit mix (just credit cards vs credit cards, auto loans, etc)

      https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-affects-your-credit-scores/

    • iopq@lemmy.world
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      6 months ago

      I have about 10 of them because cancelling is considered bad. I product change to another card when the annual fee hits to avoid it, and generally get a few cards a year to take advantage of bonuses.

      They still keep giving me 5 figure credit limits on every one, for reasons I can’t explain