Having a high credit score opens many financial doors, as well as making potential loan options cheaper. This means that consumers need to aim for as high a score as possible. If you want to improve their current standing, opening a new credit account can be a good step to take.
Establishing a new account can boost your score by two methods:
- The first is by increasing someone's credit utilization ratio. By having more credit available, as long as your balance remains low, you will have a higher ratio of debt-to-available credit. This is a good thing in any lender's view, showing that, despite having access to large amounts of credit, you can refrain from using it all.
- Secondly, having an...
from MoneyTips http://www.moneytips.com/2-ways-more-credit-can-boost-your-credit-score
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