3 Things No One Tells You About Your Credit Score

(And One Big Change That Might Surprise You)

Credit scores are weird.

You know they matter — for credit cards, loans, even renting an apartment — but what actually affects them can feel confusing. Pay your bills on time? Obvious. But what about opening a card you barely use? Or closing one that’s been sitting in your wallet for years?

Let’s clear up a few things that don’t get talked about enough — and touch on one new twist you’ll want to know about if you’ve ever used Buy Now, Pay Later at checkout.

What Actually Moves the Needle on Your Credit Score?

Here’s the short answer:

✅ Opening a card = good (in most cases)
❌ Closing a card = sometimes risky
📉 High utilization = sneaky score killer
🆕 BNPL = now on the radar

1. Opening a Card Could Boost Your Score

Most people think opening a credit card hurts your credit. And yes — in the short term, it might dip a few points when you apply. But long-term? It can actually help.

Here’s why: a new card increases your total credit limit. That lowers your credit utilization (how much you’re using vs. how much you’re allowed), which is a huge part of your score.

Try this:

• Pick a no-annual-fee card you don’t mind keeping around.

   

• Use it for a small recurring charge (like Netflix).

   

• Set it to autopay and forget about it — you’ll be building credit quietly in the background.

What’s a Credit Limit?

Your credit limit is the maximum amount a lender lets you borrow on a credit card. 

If your card has a $5,000 limit, that’s the most you can spend before hitting the ceiling.

Your credit utilization is how much of that limit you’re using.

So if you carry a $1,500 balance on a $5,000 limit, that’s 30% utilization — and that number matters a lot for your credit score

Quick tip:

The higher your credit limits (especially across multiple cards), the easier it is to keep your utilization low — even if your spending doesn’t change. 

2. Closing a Card Can Sometimes Hurt You (Even If You Never Use It)

This one’s counterintuitive. You’d think closing an old card is the responsible move — especially if it’s collecting dust. But it could backfire.

When you close a card, your total available credit drops. That makes your utilization go up — and that can pull your score down. It can also mess with the average age of your accounts, which matters more than people realize.

How to tell if a card is helping your credit:

• Check if it has a high credit limit — that helps keep your utilization low.
  
• See how long you’ve had it — older accounts boost your credit history.
• Look at your credit report (free at annualcreditreport.com) to see how it fits into your overall profile.

Before you close a card:

• Make sure it’s not helping your credit more than you think.
  
• Consider keeping it open, especially if there’s no annual fee and you’ve had it a while. 
• If you do need to close it, pay off balances on other cards first to soften the blow.

3. Your Credit Utilization Is a Bigger Deal Than You Think

This might be the most underrated piece of the credit puzzle.

Your credit utilization ratio is just how much of your total limit you’re using — and it updates every month. High balances — even if you pay them off — can hurt you if they’re reported at the wrong time.

What to aim for:

• Try to keep your utilization under 30% — under 10% is even better.
  
• That means if you have a $5,000 limit, don’t carry more than $1,500
• Pro tip: Pay before your statement closes, not just by the due date.

Bonus: BNPL Is Starting to Impact Your Credit

If you’ve ever used Affirm, Klarna, Afterpay, or similar “Buy Now, Pay Later” options, this one’s for you.

BNPL has exploded — helping people split payments on everything from groceries to flights. But until now, those loans didn’t show up on your credit report. That’s changing.

FICO — the company behind the most common credit score — is now including BNPL loans in its scoring model.

What this means for you:

• BNPL is finally being treated like a real credit product.
  
• If you pay on time, it could help you build credit (especially if you’re just starting out). 
• If you miss payments or stack too many loans, it could drag your score down. 
• With BNPL usage expected to hit $108 billion this year, lenders are paying attention.

So if you’ve been treating BNPL like a shortcut or an alternative to credit cards — it might be time to think differently. Your score could start treating it like a loan. Because now… it is one.

Want a Smarter Way to Understand Your Credit?

We’re building tools that help you navigate this new world — from traditional cards to new payment trends like BNPL. Whether you’re just getting started or looking to level up, we’ve got your back.

💬 Got questions? Want tips from others navigating the same stuff?
Join our Discord community — it’s a space to ask questions, share wins, and get real answers from people who’ve been there.

Come for the credit tips, stay for the rewards hacks.

Kiwii, Inc. is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as MileValue.com. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

Earn. Stack. Repeat.

Add Kiwii to your browser