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BrookeC4

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Does multiple lines of credit benefit your credit score if they're all paid on time? or...
Does multiple lines of credit benefit your credit score if they're all paid on time? Or does opening a new card hurt your credit? Please explain.

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Long term - yes, multiple lines of credit benefit your credit score, assuming that usage of credit doesn't increase.  Why?  Because total credit line has increased.  If you spend $2,000 a month on credit cards and have a 10k total limit, you're utilizing 20% of your credit (it uses the amount that is shown on your statement, not the amount that is left over after you pay for that month).  If you spend $2,000 a month on credit cards and have a 20k total limit, you're utilizing 10% of your credit.  You don't want to be over 40-50% for more than a few months or random reviews by the credit card companies could result in them increasing your APR or lowering limit.  Use each card at least once a year, or the issuing bank *may* cancel it (usually only if your score plummets, but...).

Short term - It *could* lower your score slightly because of the hard inquiry, those stay on your report for 12 months (but don't have as much of an impact for the last 6 months).

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