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New Credit Card or Increase Limit?

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New Credit Card or Increase Limit?

I am slowly rebuilding my credit after BK. It was discharged Nov 07, and I bought a house in Dec 07.
Yes! it is possible!
I have finally passed 700 and have not applied for any credit at all since the mortgage.
So I have zero inquiries since Nov 07 and have been very careful not to get any hits.
Now that it has been awhile I want to increase my credit and was wondering what is better:
To call Chase and ask for a credit limit increase or just apply for another credit card?. It's not like I don't get a few applications every week in the mail.
 
Message 1 of 7
6 REPLIES
Valued Contributor

Re: New Credit Card or Increase Limit?

Either way will cost you a hard inquiry as Chase does a hard pull or CLI. I would search on this site for BK friendly bank cards if you need a new card. Additional tradelines in good standing are always a good thing.
Message 2 of 7
Established Contributor

Re: New Credit Card or Increase Limit?

I'd apply for another card. It's nice to have a back-up in case your card is compromised and you need a new account number or if they screw up and apply your payment incorrectly and you don't have enough credit left for your purchase, etc. I know these things are pretty rare but they can be a hassle.

But like the other poster mentioned, if you go that route look for someone BK-friendly so you don't rack up inquiries for nothing.
Message 3 of 7
Senior Contributor

Re: New Credit Card or Increase Limit?

How long have you had the Chase card and what is the limit? While your scores are good assuming they are true FICO's most issuers won't touch you that close to a BK.

IF they do you might tend to get low limits.
Message 4 of 7
Senior Contributor

Re: New Credit Card or Increase Limit?

In my opinion,

Less than 4 cards, apply for a new one.
4-6 cards, either one.
More than 8 cards, CLI.

I like having CCs in even numbers, more than 4 but less than 24 for just credit cards.
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Message 5 of 7
Valued Contributor

Re: New Credit Card or Increase Limit?

ilovepizza is, as is often the case, right on the money. If you only have one CC, that looks awfully thin to the FICO formulas. For optimum credit you really should have at least four revolving accounts. This is especially true if you're trying to dilute the effects of a previous baddie like a BK.
- - - -
in a credit-scoring postnuclear Stone Age...
Message 6 of 7
Regular Contributor

Re: New Credit Card or Increase Limit?



ilovepizza wrote:
In my opinion,

Less than 4 cards, apply for a new one.
4-6 cards, either one.
More than 8 cards, CLI.

I like having CCs in even numbers, more than 4 but less than 24 for just credit cards.


Do you mean that it's okay to have 24 credit cards?  Or am I reading this wrong?
Message 7 of 7