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9 myths on how to build better credit

Build Better Credit » 9 myths on how to build better credit

Opening many accounts will improve my credit score
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Opening many accounts will improve my credit score

Some consumers with credit problems believe opening many accounts will be proof that they can handle credit. Actually, it has the opposite effect.

"That makes lenders scratch their heads and wonder why you need all that credit," says Rod Griffin, director of public education at Experian. "It's a sign of risk." Your credit score can suffer as a result.

What lenders will see is a boatload of new, hard inquiries on your credit report. Those inquiries will deduct from your credit score, while lenders will worry that you're in dire financial straits and desperately need access to credit to make ends meet.


 

 

 

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