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Limit cards, hike your credit score The average U.S. household has nearly seven retail-related credit cards, but: "Credit cards aren't like greeting cards. You don't need one for every occasion. I wouldn't shy away from one, but I would shy away from six," says Catherine Williams, who handles financial literacy for Money Management International, nonprofit credit counselors. Besides getting you deeper into debt, taking up too many retail card offers can sink your credit score - a rating between 300 and 850 points. If you score 700 or above, you could snag an interest rate of 6.04 percent or less on a 30-year fixed-rate mortgage of $150,000. At 699, your rate could be 6.58 percent. At 674 points, you're looking at a 7.73 percent interest rate. Each new credit card application could drop your score between 3 and 12 points, said Stephen Snyder, author of "Do You Make These 38 Mistakes With Your Credit?" ($29.95, Bellwether Inc.). Waiting a few months between applications won't help any. Lynnette Khalfani, author of "Investing Success: How to Conquer 30 Costly Mistakes & Multiply Your Wealth" ($24.95, Advantage World Press) offers this advice: If you must give in to temptation, then wait until you have a hefty purchase but don't take that offer unless you honestly can say that within 30 days you'll pay the bill in full. "Don't even wait until you get the bill; write a check immediately," she said. If you plan to apply for a loan or to refinance your home in the next year, hold off opening any credit card so that you can get the highest credit score possible. You don't want $20 in savings today to cost you thousands of dollars down the road because it lowered your credit score.
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