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New Member
Tony007x
Posts: 4
Registered: ‎01-15-2009
0

Should I open a new CC?

Hi I'm 20 and college student who is looking to improve his credit score.

I was looking to find ways to improve my credit score from what it currently is.

I purchased Score Watch 4/16/2008 and my score been hoping up and down depending on my balance.

I was thinking about opening a new CC in order to not have my score effected heavily because of the debt/balance ratio. I know opening a CC will hurt me short term, but will it be worth it?

 

I currently have 1 credit card @ 9.99% APR $3,000 Limit.

 

Any Suggestions? 

 

Here's my history:

 

Score Watch®  Equifax 

3/1/2009           740       

1/24/2009         684    

12/24/2008       667    

11/26/2008       678    

10/11/2008       674    

9/27/2008         675    

8/27/2008         727    

7/26/2008         695    

6/28/2008         693    

5/28/2008         683    

4/26/2008         693    

4/16/2008         714    

Established Contributor
YoungEntrepeneur
Posts: 586
Registered: ‎03-03-2009
0

Re: Should I open a new CC?

What is the card you currently possess?
New Member
Tony007x
Posts: 4
Registered: ‎01-15-2009
0

Re: Should I open a new CC?

[ Edited ]
WaMu Visa Platinum
Message Edited by Tony007x on 03-05-2009 10:41 PM
Established Contributor
YoungEntrepeneur
Posts: 586
Registered: ‎03-03-2009
0

Re: Should I open a new CC?

What's your current balance on the card? Any baddies on your reports?
New Member
Tony007x
Posts: 4
Registered: ‎01-15-2009
0

Re: Should I open a new CC?

Aprox $300, and no baddies.

With automatic payments of $100/month.

Established Contributor
YoungEntrepeneur
Posts: 586
Registered: ‎03-03-2009
0

Re: Should I open a new CC?

If that's the case, then you don't need another credit account. You're using 10% of your limit which is fine.
Regular Contributor
Nmbr1ballr
Posts: 134
Registered: ‎05-07-2008
0

Re: Should I open a new CC?


YoungEntrepeneur wrote:
If that's the case, then you don't need another credit account. You're using 10% of your limit which is fine.

Although this is true, it probably would not hurt you to get another card.  I only had 1 card myself for about 4 years.  I applied for a second credit card and after being approved my score went up about 20 points for having more of a variety of credit.  

Score Watch: EQ 767 (6/30/09)
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Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Should I open a new CC?

Agreed --it seems there's hardly any penalty on scores for cards #2 and #3. After that, take it easy.

Banks are so squirrelly these days that it's hard to come up with a stable bank that won't mind your short history. Since you're still in school, you might check out the student versions of Discover or Chase. Does your college/ university have a credit union?

Another option is to get a store card, depending on what's in your area. Best Buy store card (not their MC) is a good option, and Macy's is endlessly popular around here. With Macy's, you do better to apply in the store, as they tend to hold people to a very low initial CL with online apps, for security reasons.

As for evening out your scores, trying setting your automatic payment date to about 3 days before your statement is due to drop. That way a lower figure will report, which helps your scores.

Are you a sophomore or a junior? Four year plan or five? (Or six, or seven...) The credit plan for my two younger kids (wasn't tuned into this with my oldest) was to graduate from college with a four-year longest history, a 2-year AAoA (average age of accounts), and scores around 740. It's very doable; you already have the scores.

This really helps for student loans for grad school, renting an apartment and buying furniture, getting a car loan, etc. HTH
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Regular Contributor
pez478
Posts: 114
Registered: ‎04-29-2008
0

Re: Should I open a new CC?

[ Edited ]

I definitely agree with HTSU. I'm 23 and only had 1 CC until this past summer. In college, I had no lates or other baddies and always PIF, much like you. I got several new cards last summer with the intention of having them all age together for 5 years until I buy a house. If you can get another card or two now at age 20 and continue your responsible CC habits, you'll be in a great position after graduation with a solid credit foundation.

 

 

ETA: By looking at my scores, you're probably wondering why I got new CCs in the first place - well, I knew I would qualify for prime cards with great rewards and I plan to hold onto them for eternity. I figured I'd app a lot over the summer because right now I can take the score hit without any ramifications. That's the beauty of apping for CC while you're young and likely don't have any big purchases on the horizon.

Message Edited by pez478 on 03-06-2009 01:02 PM

Starting Score: EQ 749 TU 751
Current Score: EQ 758 TU 776
Goal Score: 780


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New Member
Tony007x
Posts: 4
Registered: ‎01-15-2009
0

Re: Should I open a new CC?

I'm not sure if my college has a CU, i'll look into it Tuesday.

I'm currently a Sophmore @ San Jose State University.

By the looks of things, i might apply for the Citi Forward card.

Unless you guys have some better cards suggestions? :smileyvery-happy:!

 

-Thanks

Tony

 


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