Hello and greetings expert Mustachians! I have a question that perhaps some of you can answer or offer thoughts on: Should I open a new credit card or request a limit increase on my current (and only) card to improve my credit score in the long run?
My situation: I'm a undergrad student, 22 years old. I'll be graduating in January, and already have a couple potential job offers in IT (entry level helpdesk, gotta pay my dues) when I do graduate. I have a stable living situation, am in control of my finances (though my student loans are looming on the horizon..), and not looking to make any big purchases in the next 5-10, e.g. car, house, etc.
I opened my first credit card about a year ago (August 2012). At the time, I applied for two cards and received one. There were one or two other inquiries prior to opening my card because I was looking for a place to rent last summer. But since August of last year, I haven't opened any other credit cards or had any other hard inquiries on my credit. Before that, the only lines of credit I had open were my student loans. Anyway, my TransUnion credit score is now 713 (according to Credit Karma, which is an awesome site btw).
I've always paid off my credit card in full every month (I usually make payments every two weeks actually) and have never paid interest, missed a payment or incurred any fees. It has a limit of $800 and my credit utilization is about 10-15%.
I'd like to improve my credit score. Since I've had my card open for about a year, I figured now was a good time to either request a limit increase or open a new card. My question is, which will be better in the long run? I'm not requesting a credit limit increase because I plan on spending more, I just want to improve my credit score through either decreasing my credit utilization or opening a new card. I'm wondering if you all have any advice on which would be better. Would a new credit card count as a new source of credit or would it basically be the same as requesting a limit increase? Are there long run ramifications of either that I would need to deal with in the future?
One of the weakest points of my credit report is my low sources of credit (all I have are student loans and my one credit card), so I'd like to improve that if possible.
Any help, advice or thoughts on the matter would be greatly appreciated. Thanks :)