How to Improve Your Credit Score Through Credit Cards
Picture this: you’ve been committed to one credit card for years. Then your friend shows you her new deal. You see something that could be better than what you already have. Should you go for it and close down your long relationship? Or do you stay in the realm of comfort? Let’s have a look at where your loyalties need to lie for your credit score to stay healthy.
Zooming in on the importance of a good credit score
Let’s bring a little more clarity to the importance of credit scores. Your credit score is your key to being lent to. If you have a high credit score, you’re more likely to be granted loans, mortgages, and lines of credit. These are all important depending on your financial and life goals.
Will opening a new credit card hamper your credit score?
As long as you’re well organized with your finances and don’t lose track of what needs paying for when, it’s okay to make the most of new deals. Just like a no-strings-attached relationship, you don’t have to be limited to just one credit card. If anything, this can give you a better credit score because you’ll have a longer credit history.
Should you close your old credit card down?
No. Just like your oldest, comfiest trainers, you don’t need to get rid of your old supplier just because you’ve found a new one. It’s actually recommended that you keep your accounts open and continue to pay at least one thing on each card you have, as it will grow your credit history, and as a result, your credit score. Closing down a card can also cause your rate of spending on one card to spike, which can make you appear to be spending beyond your means.
The bottom credit line:
Utilizing more than one credit card provider isn’t actually a bad thing. As long as you’re organized and pay your monthly fees, you could improve your credit score. So, it might be time to delve into a more open credit card relationship!
-Kyle Green
If you have any questions or would like to learn more,
please fill in the form below!