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Originally Posted by journey075
the more credit cards you have, the more unsecured credit you have and therefore the lower your credit rating.
unsecured credit is for stuff like credit cards where if you wanted, you could max them all out and go to mexico.
secured credit is like paying for a house. you cant really do much -- if you stop paying for it the bank will just take it back.
This isn't exactly correct. It's completely impossible to tell the EXACT effect on your credit, because the companies keep their formulas under lock and key.
Nevertheless, I'll try to help. As long as you aren't a slow pay, your "revolving" credit (credit that does not have a finite payoff date -- like a CC) only affects your credit in one way: the amount of your open credit you are using. So, actually, if you were to open this card and NEVER USE IT (here's the catch with most people), it would actually IMPROVE your credit score, because your "percentage of revolving credit used" would actually decrease.
It is true, however, that an "inquiry" on your credit report does decrease your credit score. Nevertheless, unless you have MANY, it's not something that really affects your score beyond a point or two. Also, the inquiries stop affecting your score after approximately six months. Basically, this is built into place because people that shop credit heavily are less likely to remain solvent customers.
Just my opinion. I've spent a couple years in the secondary mortgage business, and used the application of these principles to help people legitimately improve their scores -- and in turn, demolish the rates they could of attained otherwise. It was tough work, but it was a good time.
Best,
EW
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