Your credit score is an indicator to future lenders of how you have handled credit extended to you in the past. You can also get more information on loan by clicking at flowing source:

(also known as Kreditkarten im Vergleich – AFINU.de in the Germeny language)

If you have behaved with credit then they know from history that you are more likely to repay it. Likewise, if you have misbehaved then you are more likely to do so again in the future. That's the idea of the credit score.

So why could applying for more credit help some people to improve their score, an action that could allow them access to larger loans and lower interest rates than they otherwise would have received?

There is a clear group who can benefit from more credit

Well there is a clearly defined group of people who this should work for. If you credit score shows how you have handled loans in the past, then not having had a loan will prevent you having a score. So, by taking out some form of credit you can demonstrate you are reliable.

If you have never had any form of a loan then you can apply for a credit card and used properly, this might just improve your score. But it has to be used properly! You are showing the future lender that you can be trusted with money and here is where you set your example.

Apply for a free credit card

First, make sure that you apply for a fee free credit card. Some cards will charge you a dormancy if you never use it, avoid these.

Then, when the card arrives cut it up. That's right, chop it in half so that you cannot use it. Do not tell the credit card company that you have done this as they will then cancel the card, which is not what you want.