04-22-2013 02:42 PM
Ok, we can keep asking you for more information, but eventually we also need to give some answers . So, take what I say with a grain of salt, as there are more experienced people on this discussion board.
Basically, you need a 2 pronged approach. This is what i would do:
1) Fight to get as many of the negatives off your reports, any way you can. The others here can assist with that, since I've only read about that in books, whereas there are many here who have experienced it first hand. This is the MOST IMPORTANT of the two steps, though.
2) I agree with you wanting a second credit card. But ONLY a second card at this point, not a third. And you need to get a credit limit increase on that $300 limit card. I would suggest getting a secured credit card for $1000 or so from your bank or credit union. Since its Secured, you should be a shoo-in to get it, and since you're putting up the cash to secure it, you should be able to get a $1000 limit card, which takes you at least one step out of toy credit limit land.
Use both cards, between 1% - 9% usage each month, and pay in full. This should quickly get you at least a small bump in Fico. Then you start asking for the credit limit increase on the $300 card, ask for, oh, $1500 or so, but you really want to get at least $1000. Remember, you're NOT asking for an increase because you NEED it, tell them you want to keep your credit usage to 10% or less, and a higher limit would make it easier to manage the card.
Then, just keep using each card at 1% - 9%, pay each card off in full and on time each month, and just before 12 months are up on the secured card (ie, just before you have to pay an annual fee) your Fico should be in good shape, and you haven't requested credit in about a year, so you would have a good shot at applying for a good credit card from a prime lender. You might even be surprised at how large they might start you out (I was, when they gave me $8,500 on my first non-secured card).
04-22-2013 03:04 PM - edited 04-22-2013 03:06 PM