How Do Credit Cards Affect My Credit Score?

Another 30 percent of your credit score is comprised of outstanding debt, which includes the amount of debt you have on each of your credit cards as compared to your limit.

The age of your credit accounts makes up 15 percent of your score. Like a fine bottle of wine, the older your credit cards, the better.

The type of credit you have makes up about 10 percent of your credit. Ideally, you should have three to five credit cards.

And the final 10 percent of your credit score is determined by credit inquiries. As always, credit cards are a big part this. The more credit cards you apply for or open, the more your score will be hurt, though inquiries only affect your credit for about a year.

Remember that your credit score is the three-digit number that lenders will consider when determining whether to give you a loan and how to assign an interest rate to that loan. Though your credit card score indicates whether you have healthy credit card habits, it should not be relied upon as an accurate means of gauging whether you will receive the best interest rates. Instead, take the credit card score quiz and read the related articles as tools to help you learn how to adopt strong credit-building habits and build your credit score.