I used to shred every credit card offer like it was a scam. Now I keep a folder for the ones with 0% balance transfers.

About 2 years ago I was cleaning out my apartment in Portland and found like 50 unopened credit card envelopes. I used to think applying for new cards was gonna wreck my credit. Then my buddy Matt (works at a bank) told me that if you don't have at least 3 cards your credit mix looks thin. So I grabbed one with a 0% offer for 15 months and used it to pay off my furniture from Ashley. My score went up 32 points after 6 months. Has anyone else noticed a bump from opening a new line responsibly?

3 comments

3 Comments

torres.thea1mo ago

That credit mix looks thin" thing is SO real. Same thing happened to me, now I notice applying for stuff strategically feels like cheat codes for real life.

jana_shah1mo ago

Yeah the "cheat codes for real life" thing is true but you gotta be careful with the timing. Opening a new card does give you a temporary hit from the hard inquiry usually like 5 points for me. The real jump comes from lowering your overall utilization which sounds like what happened with your furniture. But heres the thing I see people miss all the time. If you close that old card after paying it off you lose the credit limit and your utilization goes back up. I accidentally did this with a Kohl's card I opened for a mattress and my score dropped 20 points cause I cancelled it 2 months later.

vera_johnson91mo ago

Is it just me or does anyone else feel like a credit card wizard after figuring this out? I used to throw them in the trash like they were junk mail, now I treat them like golden tickets. My buddy Matt was right - I opened one for a 0% balance transfer and my score went up, guess I'm not as dumb as I look.