How does credit work. We are on track and have a solid score, to improve we heard we should open credit card.?

Of course, get 2 or 3 credits to improve your credit. Doesn't mean you have to use them all the time or max them out. Just get them and use them on occasion and never go past half of your limit. This looks bad to lenders. My score has increased 50 points in the last 3 months because I haven't used them at all and because I pay more than my minimum payment due. Good Luck.

The importance of a good credit score can never be understated. Whether you want a loan with low interest and large amount, a gold or platinum credit card, mortgage at good terms, car loan at cheaper rates or simply have a good financial credibility -- none of it can be achieved without having a good credit score. There is no instant solution to get a good credit score. It builds up gradually based upon how well you manage your loans and financial situation. However, the credit score can degrade at quite a rapid rate if there are consistent defaults on loan and credit card bill repayments. Repairing the credit score is not that difficult provided you take these 5 simple steps into consideration.

1. Check your credit report regularly

This is a must to ensure that you know your current credit score, and what is ailing it. If there are any inconsistencies in your credit report get them corrected. Keeping bills of all the transactions you make can be very handy and helpful in correcting any errors in your credit report.

2. Get rid of those extra credit cards

The temptations to own a new credit card are so numerous in modern times that many of us end up with a purse-full of them without any real need. They stay there and cause a lot of problems in repayment. The confusion that comes with too many credit cards can easy lead to a missed payment and resulting penalties. Frequent defaults will reflect poorly on your credit score. So, keep only the necessary and discard the rest.

3. Repay on time

Every credit card transaction is a loan that has to be repaid on time with interest. Don't ever miss out on any repayment. If you are not able to make full payments, make half, or even the monthly minimum, but don't default. This will keep you in the good books of credit card company and help your credit score. If you are not able to pay anything to the credit card company, don't shy away from them, call them, explain your problem and work out things so that a negative report doesn't land up with the credit reporting agencies. Read more from: http://www.credit-card-gallery.com/article/239,Cre...

Credit cards are the same as car payments. The only reason either is good is that it shows a steady stream of cash flow. If you are able to afford the credit card payments, car payments, etc it shows stability (which makes you more likely to get a loan if needed).

For info regarding credit card rating/score plz check

http://k7c.info/

yes, good for credit to have a card. pay it off completely each month.

http://money.cnn.com/2002/02/15/debt/q_fivethings_...