Can You Have Multiple Lines of Credit?

Yes, you can have multiple lines of credit in Canada. There is no set rule limiting you to one. You still need to qualify for each new line of credit.

Lenders may review your income and existing debt. They may also check your credit report and credit score.

KOHO Credit Builder

KOHO Credit Builder is designed to help Canadians establish or build their credit history through consistent monthly payments, without relying on a traditional credit card.

With KOHO Credit Builder, you can:

• +74 points average credit score increase seen using our credit building tools*

• Get approved without a hard credit check or minimum deposit

• Pay no interest on the line of credit

• Track your credit score and credit report directly in the KOHO app

• Build your credit history with monthly payments reported to the credit bureaus

How Many Lines of Credit Can You Have?

There is no universal maximum number of lines of credit you can have.

The real limit is how much credit lenders are willing to give you. Each application is assessed separately.

A lender may consider:

• Your income

• Your current debts

• Your credit score

• Your credit history

• Your ability to make payments

Having one line of credit does not automatically prevent you from getting another.

Why Would Someone Have Multiple Lines of Credit?

Different lines of credit can serve different purposes.

For example, you might have a personal line of credit for unexpected expenses. You could also have a home equity line of credit for larger home expenses.

You do not have to use your full available limit. You only pay interest on the amount you actually borrow.

Can Multiple Lines of Credit Hurt Your Credit Score?

Simply having multiple credit accounts does not automatically hurt your credit score.

How you manage them matters more.

Applying for a new line of credit may result in a hard credit inquiry. Too many applications within a short period can negatively affect your credit score.

Carrying high balances can also affect your credit. Try to keep the amount of available credit you use low.

Can Multiple Lines of Credit Help Your Credit?

They can contribute to your overall credit history when managed responsibly.

Making payments on time can help establish positive payment history. Keeping your balances low can also help your credit profile.

However, opening additional lines of credit just to improve your score is usually unnecessary. More available credit can also make it easier to take on more debt.

Is It Bad to Have Multiple Unused Lines of Credit?

Not necessarily.

An unused line of credit does not normally charge interest because you have not borrowed anything. Some products may still have fees. Check the terms of your account.

Having access to credit can be useful for emergencies. The risk comes from borrowing more than you can comfortably repay.

Should You Get Another Line of Credit?

Consider why you need another one before applying.

Ask yourself:

• Do I actually need more available credit?

• Can I afford the payments if I use it?

• Am I already carrying debt?

• What interest rate will I pay?

• Will the application require a hard credit check?

Having multiple lines of credit is allowed. The important part is making sure the total amount you borrow stays manageable.

*Based on users with a starting score of 450 or under and who used all of our credit building tools (i.e. Credit Building, Secured Credit Building) for 12+ months with on time payments. Credit building tools we offer are not a credit repair tool and does not guarantee an improvement in credit score. Credit scores are based on complex models involving a variety of factors. Consistent on-time payments help improve scores and missed or late payments may cause credit scores to decrease. Outcomes may vary among users.