Asked by Ambar  |  Submitted February 08, 2016

What should I do when the bank calls to tell me I have a preapproved credit card?

I want to know if I should take it or not. I have a good credit and I just have one credit card for emergencies. I was wondering if having more, even without using them, could affect my credit score in a negative way.

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  Answers  |  1

February 18, 2016

The short answer is that if you already have good credit, already have access to "enough" available credit and therefore don't need the card, don't take it.

A bit more complicated answer would be as follows:

1. If you think there will be a need for additional credit that exceeds the limit of your current card, either ask for a credit limit increase from your current card company or get an additional card from your bank.

2. As long as your total credit utilization is under 29%, that is considered "good" and if it is under 9%, that is considered "excellent."

3. Other factors that impact your credit score are payment history, any derogatory marks, age of credit history (the older, the better), total number of accounts (11-20 is "good" / anything over 21 is "excellent"), and number of credit inquiries.

Hope this helps.

Mike Zaino

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