ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -There’s no such thing as “too many” hard credit inquiries, but multiple applications for new credit accounts within a short time frame could point to a risky borrower. Rate shopping for a particular loan, however, may be treated as a single inquiry and have minimal impact on your creditworthiness.

Detailed explanation-2: -In theory, you can get as many credit cards as you want. This is because credit card issuers generally don’t look at the number of card accounts on your credit report when deciding whether to approve your application.

Detailed explanation-3: -It’s generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.

Detailed explanation-4: -Credit bureaus suggest that five or more accounts-which can be a mix of cards and loans-is a reasonable number to build toward over time. Having very few accounts can make it hard for scoring models to render a score for you.