Boosting Your Credit Score By Getting Credit – Pros And Cons

It may seem strange, but you can boost your credit score by getting credit. In fact, it may be a very good idea for some people. Your credit score can determine whether or not you’ll be approved for credit, such as credit cards, or a loan, and how much interest you’ll pay on that credit. This makes it one of the most important numbers of your life.

What Is Your Credit Score?

Your credit score is a number between 300 and 850 that has been assigned to you based on your credit report. Your credit report contains historical information on your financial decisions, such as when you pay your bills, your level of credit debt, and if you’ve ever been declared bankrupt. You may still be able to get credit even with a low credit score, but your interest rates may be higher as a result. There are ways to improve your credit score.

Improving Your Credit

The first thing you need to know about improving your credit score is that it takes time. It isn’t going to happen overnight. Creditors, and lenders need to see that you have a track record of paying your debts on time. Bridget Connolly is a manager for, a popular online loan lender, and she says that many people are confused around the concept of credit.

“Many people think that if you have never taken a loan, a credit card, or any kind of credit then your credit score must be excellent. This isn’t true. If you’ve never had any credit then lenders can’t see how reliable you are in paying it back. This makes you an unknown risk. Some people would benefit from applying for an installment loan, or a personal loan to improve their credit score.”

Ms Connolly also said that there are some pros and cons to using this method of improving your credit. It’s a good way to build your credit as long as it is carefully managed, but it also gives you the potential to overspend.

How To Improve Your Credit Rating

Ms Connolly had a number of suggestions on how people could improve their credit rating. Some people would benefit from contacting a direct lender to apply for a loan. It can prove close to impossible to get a bank loan if your credit score is low, or if you’ve never had credit before. Online loans, personal loans, or installment loans may be easier for you. You should make sure that the repayments are within your budget.

She also recommends only making one application for credit at a time, and leaving long periods between applications. If you apply for multiple forms of credit, then creditors can view this as panic, or desperation. This reduces your chances of getting an approved loan, and can increase the interest on any loans you do manage to get approved for.

Some people don’t realize that even household bills, such as energy, phone and television bills, can affect your credit rating. These bills need to be paid on time, and you need to be aware that constantly moving from one company to another can have a negative impact on your credit score. Pay your bills on time, and try to stick with one provider for as long as possible. If you’re having difficulty with your bills, try to negotiate with your current provider to reduce your bills, rather than moving to a new one.

The best way to improve your credit is to take out flexible loans, or one credit card. Make sure you make the repayments on time, and keep any revolving debt low. Don’t live with a maxed out credit card. You also should close any of your credit accounts if you are struggling. This can have a negative impact on your credit rating. You should also dispute any errors on your credit report. You can request a free copy of your credit report once a year from each of the three credit bureaus – Equifax, Experian and Transunion. Make sure you read it carefully, and ask for errors to be investigated and removed.



  • Builds credit over time
  • Provides potential lenders with historical information
  • Allows some financial breathing room in case of emergencies, if properly managed



  • Needs to be carefully and responsibly managed
  • Temptation to overspend
  • You need to be very disciplined

Always remember that improving your credit score does take time. You should consider trying to a get a loan or credit card, and managing it well. This will help you build your credit, and encourage lenders to look at you as a ‘good risk’.


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