This article examines the "2-3-4 rule," a strategy discussed for managing and potentially improving credit scores. The core principle involves moderating the number of credit card applications to mitigate negative impacts on an individual's credit health, particularly concerning credit utilization. Proponents suggest that adhering to this rule can lead to benefits such as fewer application rejections and a reduction in hard credit inquiries, thereby contributing to a more stable credit profile over time. However, the text also highlights a potential drawback: each credit card application, regardless of adherence to the rule, still triggers a hard inquiry that can cause a temporary dip in a credit score. Ultimately, the piece underscores the importance of a solid credit score and disciplined credit card usage as more valuable assets than merely accumulating multiple credit cards.
Source: https://timesofindia.indiatimes.com/business/financial-literacy/debt-management/boosting-credit-profile-101-struggling-with-low-credit-score-this-2-3-4-rule-will-help/articleshow/125437750.cms