10 Tricks That Will Improve Your Credit Score
Don’t open retail-card accounts.
Does your Kohl’s card have a lot of benefits? As wonderful as they may be, you may want to think twice about it. About 20 percent off a new pair of jeans isn’t worth the potential damage that opening a store card can do to your credit score. For starters, 5 points are deducted for each new retail or gas card. Second, you are ultimately lowering the average age of your credit history. Typically, these cards tend to have lower limits and higher interest rates. Sometimes 20 percent or more. Finally, running up balances on store cards affects your credit score more negatively than does using one or two bank cards, since bank cards’ higher credit limits increase your debt-to-credit-limit ratio. If you absolutely must have a retail-card, be smart about it. Find one with a low interest rate.