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what's better: 1 secured card with a $1k limit OR 4 cards with $250 limits?

New Visitor

what's better: 1 secured card with a $1k limit OR 4 cards with $250 limits?

my goal is to raise my credit score and i'm wondering which strategy will help me the most.

Message 1 of 6
5 REPLIES
Valued Contributor

Re: what's better: 1 secured card with a $1k limit OR 4 cards with $250 limits?

1 card with $1,000 limit is better.

Message 2 of 6
Moderator

Re: what's better: 1 secured card with a $1k limit OR 4 cards with $250 limits?

Welcome to the forums!

 

Depends what's in your credit report currently, but you don't want to be in thin file status and that's far more important both for bucketing and payment history than any individual limit.

 

If you have no credit cards currently, you're far better off going with 2 for $500 each, or even 3 at $300 than a single at $1K.   If you already have credit cards in some form or fashion, then trumpet's advice is more appropriate.

 

Anything more tailored will need additional information from you bigsam.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Message 3 of 6
Senior Contributor

Re: what's better: 1 secured card with a $1k limit OR 4 cards with $250 limits?

I think it depends more on what size limits you want in the next few years.    That should be the amount you use for the deposit.    My preference is to start with $1K limit and then add another later, if you need it.  

Message 4 of 6
Established Contributor

Re: what's better: 1 secured card with a $1k limit OR 4 cards with $250 limits?

 

 

I would go with 2 cards each with $500. In that way, they could eventually graduate at around the same time in the future, and good potential for growth.


Starting Score: EQ=665,TU=618 on Oct 9,2010
EQ=702,TU=725 on Apr 11, 2012 EQ=705 on Oct 31, 2012 Current Score: EQ=702, TU=714 on Dec 8, 2012
Goal Score: 750

Take the FICO Fitness Challenge
Message 5 of 6
Valued Member

Re: what's better: 1 secured card with a $1k limit OR 4 cards with $250 limits?

It just matters how many accounts, current limits and what his AAoA is.
 
Since we dont know the above info then its just a guess....
If he has a lots of accounts and his AAoA is more than a few years then just get the one account.
On the other hand if he has none or just one account with low AAoA then probably best to get more accounts that can be unsecured so the AAoA will age together.  This is assuming he will be able to add money to each account later so they all reach at least 500 CL and with one being at least 1k before they become unsecured..
Message 6 of 6