A credit rating is a number that reflects your creditworthiness. It’s one of the first things that lenders check when you apply for any kind of credit. If you have a high credit score, it implies you pose a lower credit risk and have a better chance of getting your loan or other credit product approved.
The way your credit score is calculated can differ depending on the credit bureau. However, some of the indicators prevalent across most credit reporting agencies are:
The total amount of credit you currently have, this means all the remaining balances of any loans you have and the credit limits of any credit cards.
Your repayment history across both financial products and your utilities or bills.
The number of credit applications you've made, which usually only stay on your file for a specific period.
This means every time you apply for a credit product such as a credit card, it will show on your credit report. But does it mean that opening a credit card hurts your credit? Will your credit score drop if you apply for multiple credit cards?