Does having a credit card improve your credit?

Answer 1

{| |- | Answer:

Credit cards are often the first step for a consumer to build their credit score. Although insatllment loans and mortgages are much better, you might not have the ability to do so sometimes and therefore credit cards are a good start. If you want to build your credit, get a credit card, charge a few things, and pay off the majority of the balance. Financial experts recommend keeping your account balances less than 30% of your available credit. It shows that you have the ability to pay back your debt.

However, if you're constantly applying for new credit cards, it can hurt your rating, especially if you're getting turned down for them. Applying for too many credit cards, in a way, shows that you don't have enough capital to afford your cost of living on your own income. And if you're getting turned down by creditors, it's an indication that your credit standing just isn't up to par, and other creditors will weigh these rejections against you.

|}