Importance of credit cards in your credit score

06 September 2021
Anindya Mutsuddy

Now, unbeknown to a lot of people, credit scores are pretty important here in Denmark too, not just in the land of the bald eagles. Here in Denmark, credit scoring is widely used throughout, and not just in banks.

So, how do you improve your score? The answer may seem simple at first glance, but it does come with a caveat of sorts. The short answer? Get a credit card. Let’s elaborate.

Credit score: What is it?

In the simplest terms, you can think of credit scores being a numerical representation of how effective you are at managing your debts. That is, whether you pay them on time, your overall performance, so on and so forth. 

Financial institutions use this credit score to gauge how likely a person is to pay their debts on time, and then qualify them for certain benefits as such. The actual score is calculated on a scale of 0 to 1000. Individuals on the lower end of the scale are very likely to default on their payments, whereas individuals on the higher end of the scale have a lower probability of missing a payment or defaulting overall. Pretty neat, right?

So, where do credit cards fit into all of this?

The crest scoring models take a long, hard look into your credit card activity, as they calculate your credit score. Think about it, you’re usually more discreet about how you manage your credit cards, as opposed to something like a mortgage, or a student loan. Therefore, how you handle your credit card account is a good measure of the potential risk you pose to the credit lending party.

Therefore, these credit cards affect your credit score from the moment you apply for a card. Head on over to for more on the credit cards offered.