In a couple of my credit card posts lately, commenters have asked about the impact of getting new cards on your credit score. As we know, having a good credit score can do all sorts of wonderful things for us -- from helping to secure low-interest loans (we shouldn't be borrowing much anyway, really) to saving on car insurance to passing a check as part of a job interview process. So having a good credit score is certainly something to be desired.So what's a good credit score? According to Money Magazine (July issue), a score of 750 or above is "good" and will get you the best rates, discounts, and so on. They note that approximately 1/3 of people are in this range.To determine the impact of getting a new credit card on your credit score, we first need to look at what impacts your credit score. This piece from the Wall Street Journal breaks it down as follows:
Clients always ask me how certain items play into their credit score. I am certainly no expert in this arena (and do have a great referral if you need one!) but this article gives some pointed tips as to how your credit may be changed.
One of the main tips that I didn't know is that the ideal utilization rate for your card is around 10% (over 30% and the credit companies begin to see you as a risk!).
As always, if you have questions, please don't hesitate to contact me and I will try and find you the best person or answer possible to help you in your situation :)
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