How a New Credit Card Can Boost Your Credit Score

Many people are wary of applying for a new credit card because they've heard that their credit score takes a hit when they do it. The truth is that if you play your cards right (pun intended), that credit score ding (typically about five points that lasts two years) will hardly even matter. It will be outweighed by the new card's positive effects on your credit score, which result primarily from your credit utilization rate.