How opening an account can improve your credit report score
About 10% of your weighted credit report score is based on the kinds of credit accounts you have on your credit report. There are two kinds of credit accounts. Revolving credit, like a credit card, is open ended because it doesn’t have a number of fixed payments. A car loan or a mortgage is known as an installment loan because it has a definite number of fixed payments. When you make the last payment the account is closed automatically.
Your credit account mix is included in your credit report score calculation because lenders want to see how you have handled both kinds of credit. In this case opening a new credit card account if you have no other revolving credit accounts can help your credit report score.
If your credit report score is less than 670 then you probably will qualify only for a credit repair credit card. There are some important do’s and don’ts when navigating credit repair credit cards so a few minutes on the site linked to above can be useful.
If fast credit repair is your objective, and if your credit report score is “Good” then you may want to review fair credit credit card offerings at Credit.com. The purpose of adding a credit card account is to round out your credit mix and improve your credit score.
If you already have very good to excellent credit you may want to review some very good credit credit card offerings at Credit.com. Make use of Credit.com’s FICO score estimator to see the likely affect of adding a new credit card account to your credit report history. Depending on the credit report score outcome in the calculator they will make a credit card recommendation suitable for that credit report score rating.
Credit repair is how you can influence the things you do not control…
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