SatyaHilella

Does having too many credit cards affect CIBIL score?

In this month alone i got 3 new credit cards. Yes bank approached me saying there’s a pre-approved credit card, which will be the fourth one.

This will be the fourth enquiry on my CIBIL this month, but none of them got rejected. Current score is 770+ and age of credit is almost 3y

My understanding is having more credit limit will help keep Credit Card Usage index below 20-30%. Is this correct?

11mo ago

Sreekanth

Unnamed11mo

SatyaHilella

Fintech Startup11mo

Referring to credit utilisation %?

Sreekanth

Unnamed11mo

Having loan accounts or credit card accounts do not matter. It's the payment history that matters. I have 10 credit cards. Applying cards frequently reduces your score slightly but it will come back easily.

TallTales69

Unemployed11mo

You don't need more than 2. Easy to administer and time due dates spaced out by 15 days.

Focus on enhancing card limits rather than getting more cards. They just make managing cards painful.

Also, all the bells and whistles come at a cost - don't make card selection basis rewards. Thats an activity for the #ccgeeks people who don't have anything better to do with their time and burn time / brains gaming the cards.

Cash back / upfront discounts are the best and consistent rewards.

SatyaHilella

Fintech Startup11mo

Right.. some cc benefits do make sense. For instance for frequent travellers Priority Pass is amazing, Vistara club cards are also helpful.

I’m having many right now, but I’ll discontinue some of them before the end of the next cycle. Keeping a track with excel sheet is time/energy consuming. Thanks for the tips ✌🏼

tbk

Startup11mo

If you keep paying on time not miss bills your cibil score will increase.

SatyaHilella

Fintech Startup11mo

Yes I have never missed payments to date, always make sure to keep it on time 👍🏼

RedSummit31

Fintech Startup11mo

Even if your score gets temporarily impacted because of multiple bureau enquiries , it will bounce back in sometime. Not sure about having a new card just because it’s Pre approved, every other bank would say/offer the same thing.