# of Accounts - Really help or hurt?
11-07-2012 11:03 AM
So I just got my credit score for the first time from CreditKarma.
It says I have a 740. This is after applying for about 4 new cards over the past 2 months (mostly cards for points for a lot of new business travel I am doing).
Anyway, one of the areas I was marked low in was # of accounts. It says I have 13 accounts, with 9 closed.
It additionally states:
"Total accounts is another measure of your creditworthiness. Consumers with more credit accounts generally have better credit scores because it means more lenders are willing to grant credit. This metric represents the total number of accounts listed on your credit report. A breadth of different account types is indicative of good credit."
To get an A rating, it says I should have 21+ accounts. This seems counter-intuitive to me. Just because I can get credit, it means I should apply for a bunch of cards that I won't use? Applying for those cards will hurt my rating (in the short term) - but does it really drive my rating up long-term to have that many accounts?
CreditKarma seems to make its money by pushing CC apps on its members, so I'm not sure how reliable it is for them to tell me to have so many accounts.
Can someone give me the low down on this?