Does several open credit card accounts always negatively affect your credit score?

This should help you to understand how credit scores work..

FICO scores from 300 to 850 and Vantage Plus scores from 501 to 990.

Here is the breakdown for both systems.

Vantage Plus system scores from 501-990.

A-901-990

B-801-900

C-701-800

D-601-700

F-501-600

FICO system scores from 300-850.

Elite-740-& up

Prime-700-739

Preferred-660-699

Standard-625-659

Sub-prime-624-& under

FICO is the only one that matters since it's the one that all major lenders look at.

So as you can see it depends on if your looking at a true FICO score or a Vantage plus score.

As far as what makes up credit scores it's the following;

1. Payment history (longer the better) 35%

2. Time in bureau (longer the better) 15%

3. Types of credit (mix of credit cards & installment loans) 10%

4. New credit (new accounts and inquiries) 10%

5. Debt to credit ratio (lower the better) 30%

Things that don't effect your score.

1. How much you make or how long you have been on your job.

2. Where you live or how long you have been there.

3. Any account not considered real credit like cell phones, rent, utilities, cable, insurance or gym memberships.

4. If your a registered voter or not.

5. Having a checking or savings account.

6. How wealthy you are.

So as you can see credit is based on opening and paying accounts. So without that you would have no score at all. To have the best score and profile people need 3 credit card accounts (revolving) and 2 cars, boats, homes, personal loans etc. accounts (installment) all with good long payment historys.

The credit bureaus use different scoring systems, Equifax scores from 250 to 843, Experian from 253 to 893. Transunion from 250 to 877.

There are also 3 different types of scores. The standard that you see, the auto enhanced that only auto dealers and lenders see and the factual which only mortgage companies and lenders see.

So each person can have 12-15 different scores none of which will match. Great system huh. Add to this the fact that all lenders do not even report to all 3 credit bureaus and some don't report at all and you begin to see the problem with our current system.

As far as a real score goes, go to myfico.com it will cost $20.00 but you will get a real FICO score. You might also go to annualcreditreport.com where you can see and print free once a year all 3 credit reports. Not scores just the actual reports.

To answer your question, it makes no difference how many credit cards people have, it's how they are paid and the usage that effect your score.

Good luck.

If several is only a few, then no. Keeping the balance to 20% or less of available credit is good. Just keep making all payments on time and you are good.

If more than a few, that isn't good and can affect your score. Close them out and only keep a couple of the most useful and widely accepted ones. Use balance transfer opportunities to move other balance to these and close them out.

The number of accounts does not negatively affect your credit score. However, the credit limits, the age of the accounts, or various other things about the account may affect your credit score, positively or negatively.

The more you apply for credit — especially in a short amount of time — the more your score drops. Credit agencies interpret this as a sign that you’re desperate for funds.

If "several" means three or four, that's fine. If "several" means 20, that's a negative.