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Does Adding a Credit Card Improve Your Credit Score

28 January 2020 No Comment

Is your credit score lower than you would like it to be right now? There are some easy ways to fix that.

For example, you can check out your credit report and dispute any errors found on it. Studies have shown that about 20% of people have errors on their credit reports that are impacting their scores.

You can also bring your credit score up by applying for a new credit card. The answer to the question, “does adding a credit card improve your credit score?”, is almost always “yes!”

Take a look at how adding a new credit card to the mix will help your credit score.

Brings Your Credit Utilization Down

Credit utilization is one of the most important factors when it comes to your credit score. It illustrates how much of your available credit you’re using at any given time.

Generally speaking, you should try to keep your credit utilization under 30% to avoid having it bring your credit score down. If it goes above that mark, it could take a huge toll on your credit score right away.

When you get your hands on a new credit card, it’ll open up some available credit for you. This will lower your credit utilization and send your credit score skyrocketing before long.

It’s one of the main reasons why the answer to the question, “does adding a credit card improve your credit score?”, is “yes.”

Allows You to Prove That You’re Responsible With Credit

When you add a new credit card to your wallet, it’ll do more than provide you with available credit. It’ll also give you a chance to show that you know how to be responsible with another credit card.

As long as you keep the balance on it very low and make timely payments on it, you’ll be rewarded for getting your new credit card. You’ll be able to prove that you can use a credit card responsibly by not maxing it out and by not missing any payments on it.

Motivates You to Improve Your Credit Score in Other Ways

Once you see how a new credit card can work wonders for your credit score, you’ll be tempted to find other ways to bring your credit score up. You can do it by attacking any debt you might have hanging over your head.

There are loans with no credit check available that can be used to pay down any debts you might have. You can secure a better interest rate on your debt and make it more manageable as you move forward.

It won’t be long at all before you’re sitting pretty with a credit score in the 700s or possibly even the 800s.

Stop Asking “Does Adding a Credit Card Improve Your Credit Score?” and Apply for One Now

Your credit score is very important to you. It can help determine whether or not you’ll be able to buy a house, purchase a car, or even get a new job at some point in the future.

It’s why you should do everything you can to keep your credit score high. You should always ask questions like, “does adding a credit card improve your credit score?”, to see what steps you could be taking to make your credit score even higher.

Learn more about credit cards, credit scores, and other financial issues by browsing through the rest of our blog.

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