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Old 09-07-2009, 05:26 AM
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Quote:
Originally Posted by ActYourWage View Post
No, you shouldn't apply for a Credit Card to increase your credit score. Credit Scores are "I love debt scores". Save, be frugal, earn extra cash, etc.
As much as Dave Ramsey might believe that, it simply isn't true. Having a good credit score matters for a lot of reasons besides just getting a good rate on a loan. Even so, unless you are planning to pay cash for a house, you'll want a good score. Your credit score also comes into play when getting insurance, when getting some jobs, when renting an apartment, etc.

To further answer your original question, you should NOT open a new card. It will NOT increase your score. In fact, it will lower your score because it will shorten the average age of your accounts. You will also get dinged for the new inquiry and new account.

Keep the card you have. Pay it in full and on time every month. And be patient. Over time, as the age of the account increases, your score will increase along with it.
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