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does opening up multiple credit cards than negatively impact your credit score well in this video I'm gonna show my personal score and how opening 45 credit cards has affected it and it may not be what you think what's at Weis fliers welcome to another video if you're new here and you want to learn how to travel anywhere in the world almost free by using credit cards and travel points start now by subscribing and hittin the Bell so you don't miss a thing so why would anyone be crazy enough to open up multiple credit cards you only need one credit card to pay for whatever you need the simple answer is rewards credit cards there are over 30 different types of rewards credit cards out there and most of them offer really lucrative saina bonuses and you may be tempted to go for some if not all of those credit cards sign of bonuses with the rewards cards but the only thing holding you back is it negatively impacting your credit score in this video I'm gonna show you exactly how multiple credit cards affect your credit score and I'm gonna show you my personal score of how getting over 40 credit cards has affected now before start I want to be clear that I am NOT promoting getting credit cards just for the sake of getting credit cards and maxing them out and spending more money than you have I'm a big believer of having the zero debt paying off your cards in full every single month and never paying interest because the banks have more than enough money and you shouldn't give them anymore before I explain exactly how getting multiple credit cards affects your credit score it's important to know how a credit score is made so I'm just gonna give you a really quick breakdown if we look at this pie graph here these are the five parts that make up your credit score and as you see the bulk of the pie is payment history and that's why it's so important to always pay your credit cards on time and a simple trick to do that is to go into your credit card account and click the auto pay feature and by doing that it automatically pays your credit cards from your bank account attached to the account so essentially you're turning your credit card into a debit card this way if life gets in the way and you forget to pay your credit card on time it'll automatically do that for you so the second biggest part of the pie which accounts for 30% in credit score is credit utilization this number shows exactly how much of your credit line you are utilizing or using I'll give you a simple example your overall credit line is a hundred thousand and your credit utilization is eight thousand that's only eight percent so not only does it help your credit score to have a higher credit line but it'll also help you look like less of a risk to the banks and they'll approve you for better credit cards mortgages loan and if you pay your credit cards on time every single month your credit utilization will drop down to zero which is really good but let's just say it wasn't having a higher credit line will reduce your credit utilization number and that's why getting multiple credit cards will increase your credit line which will in turn increase your credit score now it's important to note there is a negative side to applying for multiple credit cards sometimes when you apply for a credit card they give you what's called a hard pull or hard inquiry that's the bank's way of looking into your credit report and making sure there's nothing fishy there when they want to approve you for a credit card a hard inquiry on your credit report can drop your credit score two to three points but keep in mind this is temporary and it will go away after two years so I don't want to bore you with all of the my new details of a credit report and credit score and all the five different factors that determine it let's head over to Credit Karma comm and I'll show you my account and how 45 credit cards has affected it just logged into my Credit Karma account by the way it's completely free to check your credit on Credit Karma comm and it won't affect your credit score so as we see here it only shows two of the three credit unions and they're both above 800 so I have an 8 12 and an 802 let's go to the TransUnion one as we see here my credit score has been above 800 for a few months according to this chart but it's actually been above 800 for a few years and if we scroll down a bit these are the factors that determine my credit score out of all the credit cards that have a for I only have one heart inquiry for this credit union so sometimes the banks will give you a hard poll or heart increase sometimes they won't even though it says 42 cards up in here and other credit unions it'll show different accounts open but still over 40 credit cards open and my credit score is still in 818 and that's mainly because I'm paying my credit cards in full every single month so as you see getting multiple credit cards doesn't negatively impact your score in fact they could actually increase your credit score as long as you're paying all your bills on time and if you're looking to get a new rewards credit card and not sure which one to get or where to start you could click the link below and get a free card consultation on my website and I'll give you basic car strategy and tell you which credit card used to go for next hope I was able to dispel this credit myth for you if you like this video share it with someone who would benefit and if you want to watch more videos about credit cards and how to travel anywhere in the world almost free you could click any of these links over here and I'll see you in the next video