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Posted on 19 July 2017 | 933 views

Open Numerous Credit Cards and Store Credit Card Accounts to Build Your Credit Score

The Strategy — the more credit accounts you have, the higher your available credit and the lower your credit utilization ratio. So when someone offers you the opportunity to apply for a store or credit card, always answer — “Yes, please!”

The Outcome — does it work? In the short run, no. In the long run, yes. Short term, you’ve got all those credit inquiries on your credit report. Too many credit inquiries can act as a red flag. But after six months or so, it will help your credit score because it builds up credit you’re not using. You can actually move your credit score from 630 up to 789 using this strategy.

Read: Wells Fargo Credit Score Promotion Returns in 2015

There are drawbacks to having too many credit cards. For one thing, you have to use them all from time to time to keep the card active, and then somehow keep track of paying each one. The credit score model looks at how you use that available credit, if you don’t use the cards — it’s meaningless.

Open Numerous Credit Cards and Store Credit Card Accounts to Build Your Credit Score


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