Is one too few? Are four too many?

You are a good steward of your money and pay off your numerous credit cards in entirety when due. But you like the perks that come with a new card, so you aren’t afraid to get a new card, knowing that you will pay it off before any fees occur.

Is this a good way to handle your credit? Keep in mind that creditors make their reports to the credit bureaus once a month, and that includes the same balance you get in your statement.  To keep your credit score high, it is more important to keep your usage low on every card you have.

Opening new credit card accounts frequently is a red flag to the bureaus and can lower your credit score. The figuring is that each new credit account can at least hypothetically increase the risk of future debt and the inability to pay that debt. Now if you apply for cards, get them and don’t use them, your score can remain unaffected.

The bureaus will also keep your history in mind. No history and two or three card applications can raise eyebrows. Twenty years of a clean history and it doesn’t warrant even a nervous twitch. The general rule is to maintain few accounts, used infrequently with low balances…and no missed payment deadlines.