Do not opt for too many credit cards

Getting a credit card to build your credit score is the best and fastest way to start your credit journey. Even though credit cards will help you, they can hurt you if too many credit cards are opened throughout the year.

When you have one or two credit cards for years, companies see this as a great thing. Having so many credit cards is good from a long-term standpoint, but it will definitely make your credit score drop the short term, as credit lenders will feel you are too desperate to get more money and higher limits. Someone who is desperate to gain more spending power is obviously in need of money. In the company’s eyes, if you need more money, chances are you do not have enough money to pay off your existing cards or bills. Therefore, they do not want to give you a higher spending limit in fear that they will not get their money back.

Every card you apply for, the company will make a call to credit reporting agencies. This will drop your credit score by a few points and it will stay on your reports for roughly 2 to 3 years. Also, keep in mind, having too many credit cards require you to manage them well. The more you have, the more due dates you have to remember and the more payments you have to make.

It is always good advice to set auto-pay on so that just in case you forget to pay, you can avoid negative ratings and a considerable drop in your credit score. Only apply for as many credit cards as you can handle.