Lack of Revolving Accounts Hurt Credit Score

By Experian Team

2 min readMar 15, 2018

Dear Experian,

My credit report says my score is reduced because I have no revolving credit accounts. Would it help my score to apply for and use a credit card?

- RYN

Dear RYN,

Each time a credit score is calculated a series of risk factor statements is generated. Those statements describe what from your personal credit report is most affecting the score you received. If your score factors indicate that not having a credit card is hindering you, opening a new credit card account should help.

How Opening a New Credit Card Account Could Impact Credit Scores

However, you might not see an immediate increase in your credit scores. In fact, you might see scores dip a bit when you first open the account. A new, unused card represents risk. It's not yet clear whether you will charge to your limit, or use the card carefully and pay your balances as agreed.

But with time, and wise use, your scores should bounce back up and then surpass your previous scores. The longer your credit card account remains open and in good standing, the more it will boost your credit scores.

Having At Least One Revolving Account Can Help Credit Scores

Having a credit card is important because you decide how much to charge and how much to repay each month. This independent decision making gives lenders additional insight into a consumer's debt management and payment habits. Therefore, demonstrating that you can manage credit card debt over time is often a good way to improve your scores.

You don't have to carry a balance or pay finance charges. Just using your cards and not letting your balances get too high compared to your limits will demonstrate that you can manage your credit obligations well.

Thanks for asking.
The "Ask Experian" team