Does getting more credit cards equal higher credit score?

Question

I am an 18 year old in Canada looking to build my credit and save money so that I can invest in the next 12 months. My question is, would getting another credit card or two improve my credit score in the next year? Let me know what you think. Thanks.

P.S - if you have any other ideas for how to build credit leave those a response :)

Zorya Belanger · Answer

Generally no. Better to have one and show long term consistent use. What they want to see is that you are using it but consistently paying it off every month and never maxing it out. I've heard that it's best to only use about 60% of the limit. So if you have $3000 credit limit, don't use put more than $2000 each month. I pay for everything with credit card, and then completely pay it off each month. If you have other monthly payments, like phone, always pay your bills on time. That will help with building credit.

Rahul Patel · Answer

if you are taking another credit card that means you are increasing your liability. I would do regular payments to my credit card to increase the score.

Wendell Fong · Answer

I am going to say yes.    I do credit checks and look at scores all the time.

I do not know the exact metrics that the system uses to move your score up or down, but as long as you are paying off your credit cards every month then I think it helps (at least it cannot hurt) . I do not know if this moves your number up or down, but there is a number on the report that says something like % of credit used.  So if you have two cards with 5k limits..  and 4k in outstanding balance, your % of credit used would be 40%.   If you only had the one card with 4k in outstanding balance your % of credit used would be 80%.

Colleen F. · Answer

@Rylan Conrad  length of credit and different types of credit can improve your score but it will not go up quickly.  Two credit cards you use and pass of regularly may help.  Best thing is to get another card and put both on autopay.  Charge a few things you would already buy with them. So if you get a cashback card you can even get money back on CC use. Now not sure what is different in Canada.  I don't reccommend a car loan but it did positively impact my sons credit even though we had to co-sign.  That said never buy what you can't afford.

Theresa Harris · Answer

I'm in Canada and I have one credit card.  I rarely use it and I always pay off the balance in full.  As Zorya said you will have other bills (phone, gas, electric, etc) that you are paying and those will help with your credit score.

Nathan Williams · Answer

the short answer to this is YES.  Two 1 year old positive credit lines will look better than only one credit line.  It also helps solidity your average age of accounts, and overall credit utility.

edit just realized you are in Canada, not sure how credit scores work out there.

Alecia Loveless · Answer

@Rylan Conrad Once you have started to establish a payment history with that card, ie you are using it and paying it off monthly you can call the company’s customer service and ask for a credit limit increase. Obviously don’t do this and get yourself in trouble with too much spending that you’re not paying off.

This will increase your overall credit limit making you more attractive to banks and lenders because it shows them that you can handle yourself financially and not get yourself into trouble with your credit.

REPEAT: Don’t do this then run and spend it all and get yourself into debt and money trouble.

If you’re a student they may only give you $500-1000 to start out but if you’re working they may give you a couple of thousand.

Best of luck, save up for your down payment!

Rylan Conrad · Answer

Thank you @Zorya Belanger and @Rahul Patel. I will utilize more of my available credit and continue to pay it off fully.

Does getting more credit cards equal higher credit score?

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