Should You Get a New Credit Card?
You Still Need to Establish Proper Credit
If you’re just starting to build your credit history, a new credit card can help show future lenders that you’re capable of
handling multiple accounts. “I recommend having at least two cards,” says Nancy Anderson, CFP® with LearnVest Planning Services.
“If you have one card that you’ve already built, maybe add a retail or gas card, and put something on it regularly. Then pay
it off every month to help further establish credit.”
Over time, consistent, responsible spending behavior can be rewarded with increased limits and a healthier credit score. “The key for lenders is history,” says Anderson. “They look to see if you’ve made payments on time, as well as your total utilization, which is how much of your credit you're actually using. You shouldn't utilize more than 30% of your total available credit at once.” By adding another card, you can increase your total available credit, which should make it easier to spend under 30%.