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Need Help, More Credit Cards?

Member

Need Help, More Credit Cards?

Hey. first of all...i'm 19 (20 in just 3 months) and i'm going to try to buy my first car myself, by my birthday. in 1-4 months. i only have 1 credit card & it's been open for about 8-9 months. the 2 fico scores i've checked are 713 & 687. I got in the mail today a pre-approval letter for a credit card from american express, "based on your exceptional record of financial responsibility, blah blah blah. I usually throw these away. but I was wondering...i've read before that having more than 1 line of credit open is better for your credit score, but i have also heard that opening a new line of credit or getting a loan, etc...will temporarily make your score drop and then it will go back up again after you start making good on the account. so my question is I guess, would accepting this credit card hurt my score and chances of getting an auto loan within the next couple of months, do nothing at all, or possibly help it? thanks. oh and i'm not in debt or anything. i use my card and pay it in full every month.
Message 1 of 5
4 REPLIES
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Regular Contributor

Re: Need Help, More Credit Cards?

At this time, I say go for it and get the Amex card.  While the hard inquiry may initially hurt you, the available credit will raise your utilization, thereby helping to raise your FICO scores.  Just explain to your auto lender that you jumped at the opportunity to get an Amex card recently and that should explain away your recent unquiry just before buying a car.
Message 2 of 5
Moderator Emeritus

Re: Need Help, More Credit Cards?

Check you EX score before applying

Even with a little hit for the INQ - if your DTI is good you should not have an issue getting prime rates on an auto loan.

Who do you bank with?
Message 3 of 5
Member

Re: Need Help, More Credit Cards?

thanks you guys, for replying. My EX score is 713. I bank with Wachovia, i've had a checking account there for almost 4 years, since i was 16. I also recently joined Redstone Federal Credit Union (military) so i'm a member there and have a savings account with them. I'm not so much interested in getting another credit card than I am interested in doing whatever i can to help my chances with getting an auto loan soon. If getting another card won't do much or possibly hurt my chances than I just assume not get it. I could try and get my credit limit on my current credit card raised though. would that help? it's a capital one. how would I go about doing that?
Message 4 of 5
Moderator Emeritus

Re: Need Help, More Credit Cards?

If you are attempting to get major financing such as an auto, dont apply for any ew credit right now.  Lenders like to see a stable payment history and a new card will reage your file possibly lowering your score.
Message 5 of 5