Does signing up for multiple credit cards reduce my credit score?

I have a lot of offers of airline credit cards that give you bonus miles when you sign up. I am tempted to sign up for all of them but will this reduce my credit?

Does signing up for multiple credit cards reduce my credit score?postage rate

It depends.

Credit scores are based on score card models first popularized by Fair-Isaac Company (that%26#039;s where the %26quot;FICO%26quot; score name came from). FICO is the most popular consumer credit scoring models used by the banking industry, although there are a number of other ones developed by the credit bureaus and even banks.

The model is applied to the credit data in each of the consumer credit bureaus%26#039; database. That is, Experian, Equifax, and TransUnion each have a database of credit information they compiled over the years by the financial institutions who report to them. Each of them will run their own data through their version of the FICO Scoring Model and give you a FICO score.

The way FICO score is comprised roughly in the following way: 35% - Payment History, 30% - Amounts owed, 15% - Length of credit history, 10% - new credit, and 10% - types of credit used.

This means that by opening a bunch of credit card accounts in a short period of time, you would see a negative impact to the %26quot;new credit%26quot; portion of the score.

However, if you didn%26#039;t have many credit accounts prior to this, having access to additional credit may actually improve your score by improving the %26quot;types of account used%26quot; and %26quot;amounts owed%26quot; categories, assuming you don%26#039;t go and max out the credit limit.

I recommend:

1) Don%26#039;t go and sign up for allof them. Just sign up for one or two at this point. One BIG factor in addition to the above is time. Negative events will be weighed less as time passes. At some point in time, having a healthy amount of credit you can tap into and keeping the amount owed low will actually start to improve your credit score. Credit score can change from week to week.

2) Another reason not to sign up for all of them is you don%26#039;t want to spread out your rewards. Since it takes something like 15,000 miles to exchange for a free ticket in a typical mileage program, by concentrating on one or two cards will give you the rewards faster. Otherwise, you may have miles in 5 different cards and no ticket on any of them.

Does signing up for multiple credit cards reduce my credit score?

loan

yes. even checks on your credit can lower your credit score.

if you want the bonus miles picke the best one and get that card. it iwll not lower your score by much. the miles and savings are more important than a point or 2|||Ok depends on how many credits you have. For example I think you shouldn%26#039;t have more than 6. What most people do is they have many but they don%26#039;t use all. Some of them they have but don%26#039;t use at all to build credit score. Now the ones they use they don%26#039;t max them out. You should only use 30-40% of the amould allowed. Max ur credit card and having too many credit card can yes lower ur credit. So if u only have few it actually help build ur credit..Just make ur payemnt on time and don%26#039;t max it out|||yes|||Yes it could.|||You bet your life it will.|||Yes it does lower your credit score.And it takes 12-24 months for each inquiry to come off your report.But there are agencies that say they have a method that gets it off sooner than later.|||Yes. Read this

http://www.ehow.com/how_2002988_raise-fi...

(step 6)|||yes