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of credit you apply for. This especially applies to store credit card offers. The 10% savings that you are offered for opening a store account will be negated by the corresponding drop in you credit score. Credit applications for home or car loans are usually counted as one inquiry as long as they are applied for in a limited amount of time. Pre-approved credit offers, rental and employment checks and self credit checks do not hurt your score.

Types of Credit

Your credit score also considers the types of credit you have. For example, it will look at the number of credit cards, store cards, personal loans, gas cards and other debt. Too many revolving credit cards, especially store cards and gas cards will bring down your score.

Overall, if you are just starting to build your credit score, you will want to start small. You can get a small loan from a bank or car dealership, obtain a credit card with a low limit or get a store credit card. Then make your payments consistently on time and use your credit card sparingly. Avoid using more than 25% of any credit line even if you pay it off by the end of the month. Remember, your credit score is your score on one individual day. It doesn't know that you are planning on paying down a balance at the end of the month. A good credit score does not come overnight, however, by following these tips, you will work your way up to a good score in the long run.

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