New Delhi, Business Desk. Does your credit score get affected if you take a new credit card or apply for it? This question is in everyone’s mind. A credit score is a 3-digit number that indicates a person’s credit in banks and other financial institutions. If the credit score is high then the chances of getting a loan or credit card increases. Banks do not like to give loans or credit cards to people with low scores, as they feel that the customer will not be able to pay back. Now know in which cases applying for a new credit card can damage your credit score.
Opening a new credit card account can reduce the average age of all your accounts. Actually your credit age score is 15 percent. It actually measures the experience you used. Apart from this, there are 2 major factors in your credit age. The first is the age of your oldest account and the second is the average age of all your accounts. If you have multiple accounts and have a long history then a new credit card application will have some impact.
Applying for a new credit card will affect your credit score or CIBIL score. For this we talked to Jitendra Solanki, Certified Financial Planner, he said, ‘If you have more than one or two credit cards, then this is your credit score. Will have a negative effect on For example, if your salary is 50 thousand rupees a month and you have taken four credit cards, then it will affect your CIBIL score.
Think of it like this, if your salary is 50 thousand rupees a month and you have a total of 4 lakh rupees including four credit cards and most of them spend the money of the card then how will you pay the money spent on them. It will be very difficult for you.
Solanki said, ‘Loans like credit cards, personal loans are unsecured loans. He said that if someone already has a credit card, it will negatively impact, and if you are taking a first or second card, it will not negatively impact it. Jitendra Solanki said that having more credit cards means that you are maintaining a higher credit score. If the credit limit is more than the monthly income, it will have a wrong effect. He said that one to two credit cards are enough, it should not be more than this.
Source: www.jagran.com
