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I have heard that if a person has open accounts with a credit line that it will increase your credit rating because you have open available credit. Is there any truth to this and if so does it help to open more accounts and not use them just to have open lines of credit.

9 Thoughts on does opening new credit card accounts increase your credit rating as long as you do not use them?
  1. Reply
    Nick
    August 9, 2013 at 9:41 am

    no, it will actually lower your credit score in the long run.

  2. Reply
    David C
    August 9, 2013 at 10:29 am

    no it doesn’t. you would have to use them to show a history for a credit rating.

  3. Reply
    bdancer222
    August 9, 2013 at 10:54 am

    Not exactly. About a third of your score is based on the ratio of credit card debt to limit. Carrying balances of more than 30% hurts your score. If you get new credit cards, you add to your limit which could decrease your debt percentage if you carry balances. However, if you don’t carry balances on other credit cards, it make no difference.

    You have to actually use the account to establish a payment history to build your score. If you don’t use the account, it is very likely that the company will close the account due to inactivity.

  4. Reply
    Sarah
    August 9, 2013 at 11:21 am

    To get increase your credit rating you have to prove you are “good for the money”, so opening credit cards and not using them doesn’t give the credit card company any idea if you are actually responsible with their money or not.
    It’s great to have all these credit cards and not have to use them (company’s are eager to offer cards to just about anyone who doesn’t have horrible credit history) but if you get them for the sole purpose of increasing credit, use them and pay them off right away. This eliminates interest charges plus boosts your rating.

  5. Reply
    censored_4_tv
    August 9, 2013 at 12:16 pm

    No. Opening them and maintaining them does

  6. Reply
    kewtee469
    August 9, 2013 at 12:29 pm

    yes. if you have a major credit card it shows your creditworthiness. But don’t put too much on it! it shows lenders that you’re a reponsible borrower and they’re most likely to extend credit to you.

  7. Reply
    Gaylon
    August 9, 2013 at 1:16 pm

    A bad credit rating is obviously a big worry – if you are unsure of what rating you have then you should get it checked out – I tried at http://www.expertzworld.com/credit-guide.php – it gave an accurate picture of my credit worthiness!

  8. Reply
    DJ
    August 9, 2013 at 1:20 pm

    You may have heard about debt-to-credit ratio, which is a part of your credit score. However, opening several accounts in a short period of time can be a bad idea. Here is a quote from http://www.myfico.com / Credit Education / Credit Inquiries:

    “Does applying for credit affect my FICO score?
    Fair Isaac’s research shows that opening several credit accounts in a short period of time represents greater credit risk. When the information on your credit report indicates that you have been applying for multiple new credit lines in a short period of time (as opposed to rate shopping for a single loan, which is handled differently as discussed below), your FICO score can be lower as a result.”

    There are a lot of great links on the Credit Education page.

  9. Reply
    TTC#2- Becky Loves Jer Moo
    August 9, 2013 at 1:38 pm

    They want to see that there is activity on the account and that you are paying..
    You cant expect a score for an account that there is no activity on if you use the card and pay them at least the minimum on time every month then it will help you score.
    I think it depends on the card company… if there is no usage after a certain period in t ime the contract may expire. thats what happend to my sister jb robinson card account

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