Will opening a credit card improve my credit score?
I currently have flawless credit but no revolving accounts (ie No Credit Cards and very little debt) and a score between 727 and 768 (varies by credit reporting company).
If I go get a $5000 credit card and keep the balance very low, how will it effect my credit: A) Immediately and b) 3-6 months down the road?
I don’t plan on using the card for anything but to improve my score. Only keep it active for reporting to the credit bureaus.
Related posts:
- I have a credit score of 519 and want to improve my score… How?
- Should I get a second credit card to improve my credit score 6 months from now?
- how fast does your credit score improve after paying off credit cards?
- Is it better to close paid off credit card accounts or keep them open, if you want to improve your score?
- Where can I get a joint secured credit card and will this help improve both person’s credit score?
6 Responses to “Will opening a credit card improve my credit score?”
Comment from Olympics
Time February 7, 2010 at 3:30 am
it will help you only if you use it correctly by keeping a low balance and make your payments on time, http://www.fastcreditcardapprovals.com has all major credit cards.
Comment from STEVE P
Time February 7, 2010 at 3:50 am
Having credit cards will improve your credit score providing you make the payments on time. Your credit report will show the cards you have. I myself have four (4) credit cards and a credit score of 796. It would be higher if I had other payments that I could pay on time.
Comment from latebreakfast
Time February 7, 2010 at 3:58 am
You’re scores are high, so don’t expect a huge loss in points over one credit pull. Maybe just a few points!
But, it will go back up in a relatively short amount of time.
It will help you believe it or not, because a fraction of the FICO scoring model likes to see that you have all types of credit. Credit cards are just one of them. Keeping that card active is another, and keeping the balance low (best scores are below 19% usage)
In the long run, it will help.
Good luck!
Comment from Anjell
Time February 7, 2010 at 4:13 am
Initially your score will drop minimally as do all attempts for credit attract a score drop.
If you are successfull in the your application and keep your usage to a minimum ideally less than 20% and pay in full and on time you will establish a positive repayment history.
And this will add points to your existing score.
Comment from allcredits@ymail.com
Time February 7, 2010 at 4:44 am
Why don’t you get a gas credit card ? Most of the time you will also get a better price for your gas.
Comment from slacker4life
Time February 7, 2010 at 3:20 am
Immediately it will decrease your credit score.
Down the road, it will help improve it as it shows you are able to handle multiple types of credit.
Do not keep too high of a balance, your total debt to credit limit ratio should not be more than 30%
You should use the card at least once a month maybe for a small purchase. Do not leave it inactive