Will a new credit card help our credit score?

Credit Score Quality - shutterstock_158995727

Q:  Would a new credit card help our credit score? Even though we were pre-approved for a mort­gage, our credit is suf­fer­ing due to the lack of revolv­ing credit.

–Joe, Texas

A:  Get­ting a new credit card and man­ag­ing it well could ulti­mately improve your credit score, but prob­a­bly not in the short term.  As a mat­ter of fact, the short-term impact of open­ing a new card could be neg­a­tive.  It could actu­ally cause your score to down as a result of the credit inquiry needed to get the care and the poten­tial to reduce the aver­age age of your credit vehicles.

Unfor­tu­nately, in most cases it takes quite a long time to get pos­i­tive credit behav­iors to reflect in a mean­ing­fully pos­i­tive way in your credit score. There’s really no quick-fix strat­egy to bump your num­ber up.  Since you’re in the process of try­ing to buy a home right now, I’d wait until later to do any­thing that could impact your credit.

Good luck with your house hunting!

JJ

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Examples given are hypothetical illustrations and not an indication of the benefits or features of any USAA product. You should seek policies and advice based upon your own particular circumstances. Sample loans are for illustration purposes only and are not a rate quote, pre-approval, or commitment to lend.

Scott Halliwell and JJ Montanaro are CERTIFIED FINANCIAL PLANNER™ practitioners with USAA Financial Planning Services, one of the USAA family of companies. Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and Certified Financial Planner™ in the United States, which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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