
Credit cards are the best financial tool for convenience and security. You can use it when you do not have enough amount of cash. Or also if you do not want to carry cash while making a purchase. Credit cards are useful when you want to purchase a huge product such as a refrigerator. They can be most significant while traveling and provides you security from zero liability fraud. However, having too many credit cards can impact your credit score. So, having too many cards under your name can negatively impact your score. There, the question arises of how many credit cards are considered as “too many”.
Choosing the Number of Cards
There are several factors that you can consider to determine the number of cards you can use. Some people think that a small number of cards say, two or three is sufficient. While others think that one can open multiple cards with the offers that come into their mail or online. However, the truth is that the way you manage them and the circumstances are more important. This is important than the number of credit cards you carry. It is quite preferable that you can use one card for most of your spendings and the other for specialized spendings. However, it is important to keep in mind that having too many credit cards can make you risky in front of lenders. Also, can decrease your score.

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How Credit Score is Calculated?
A credit score is a 3-digit number that ranges between 300- 900. Generally, lenders and non-financial banks consider a score of 750 or above as ideal.
It is important to know how a credit score is Calculated. Therefore, below are the key components to calculate your score:-
Payment History
This is an important factor to include in the calculation of credit score. About 35% of your score depends upon it. Thus, if you are paying your bills and EMIs within time, then it makes you a responsible borrower. A responsible behavior will also make you get quick approval for the loan. Making low payments or missing your payments will decrease your score.
Credit Utilization Ratio
Credit utilization is the second significant factor that affects your score. A credit utilization ratio includes the proportion of credit you have used to the total credit limit. According to experts, the consumer generally should use 30-40% of the credit limit to result in a high score.
Age of the Credit
To check your creditworthiness, the lender will also consider your history along with credit while calculating the score. Thus, if you are managing your credit in a good way for a long time, then it will positively affect your score. Therefore, it is better to keep a credit card with a long history than a card that you recently used.
Total accounts
It is important to maintain a better balance of both credits, secured as well as unsecured credit. A credit card is an example of unsecured credit whereas secured credit involves collateral. These collaterals may include loans against houses, cars, land, etc. However, it has a lower impact than other factors, but it is not ignorable too. Therefore, you should avoid borrowing only one kind of credit in huge quantities as it can affect your score. Along with this, your credit inquiries are also included in the calculation of the score.
What you can do to improve your Credit Score?
Your score includes your credit and payment history, number of credit accounts, and everything. Also, a score of 750 or more than that is considered a good score. If this is not the case, then you will not get loan approval. Therefore, below are some ways to improve your score.

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Go through your Report to spot errors
Is your score declining even if you have a good payment history? Then there must be some problem with your credit report. There can be a scenario that you clear the payment but it is not updated in the report, it can decrease your score. Thus, for this, you can contact credit agencies if there is some error, rectifying errors can increase your score. Always be alert, and have a check on the credit bills, and score.
Maintain Older Credit Cards
If you are using your older credit card, your credit history will be more strong, this will result in a high score. Apart from this, if you think that you are no longer capable to make timely payments, then you can close your card. Although, truth is that an older credit card account can help in the increment of your score.
Make Repayments on time
Your credit score will decline if you do not pay on time. Every time, you missed your payment, it will reflect in your report and results in a decline in the score. Always remember, your payment history reflects your creditworthiness. Therefore, timely payments can increase your score.
Try to maintain a different kind of credits
Maintaining both secured and unsecured credit will let you to the safe side. The larger amount of unsecured loans can harm your score. Also, here is a factor which you have to remember if you have not borrowed any type of loan. That is you will not have any sort of credit history. Then you will not have any credit history, which will also harm your score.
Therefore, your score is most important for getting approval for the loan with a better interest rate. This is a cycle where you have to have good scores for better loan approval, and you can avail of a good score only by using credit cards. Thus, if you try to manage your creditworthiness, then your score will increase automatically. Read more financial information on, credit my debt.
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