If you're looking to maintain your credit score, you should try to avoid opening new cards unless there's a real need.
Opening a new credit card account might initially ding your credit score by a few points but closing a credit card account can hurt your credit score as well.
Once that account falls off your credit report, it affects the average age of your credit. If you've had a card open for 40 years and then close it, your average credit age could drop significantly, which typically hurts your score.
Also, if you carry balances on any of your cards, closing an account can increase your credit utilization ratio, as your total available credit will decrease. This could have an even more significant negative effect on your credit score.
Here are some reasons why opening a new credit card account occasionally can boost your credit score:
-Diversity on your credit report-Longer payment history-Decreased credit utilization
Try not using credit for a while and pay for purchases with cash or a debit card before opening a new credit card account.
Good credit utilization, which is your monthly use of your available credit, is one of the most important factors in calculating your credit score.
Your financial situation will dictate how much credit you should take on. Think about your everyday purchases. Select a card that offers rewards on things you regularly purchase, and that will help you steadily establish good credit.
Although only one card is necessary to begin taking on credit responsibility, responsible behavior with additional cards increases your creditworthiness gradually and over time.