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Should I open a new small cc to balance out negatives on other card???

Established Member

Should I open a new small cc to balance out negatives on other card???

I thought the idea was not to open any new credit cards, however, I just read a long post in the Veni, Vidi, Vinci, Visa or How to Master Your MasterCard section where he suggests opening a new account and  have no late payments.  I think this was to balance out the negative account(s) and rebuild a solid account.
 
My score is low 500, I currently have 3 charge cards and two dept store.  Should I open an Orchard MC/VISA and perhaps use it only for gas to I keep it low and can pay it off????
Message 1 of 7
6 REPLIES
Moderator Emeritus

Re: Should I open a new small cc to balance out negatives on other card???

Yes you should.
Message 2 of 7
Established Member

Re: Should I open a new small cc to balance out negatives on other card???

Thanks Tuscani for your reply.  I applied to Orchard online and was approved even though it's a low credit limit.  I'll use it strictly for gas and set it up for automatic payment.  I'd like to ask you another question:
 
Is it better to pay off all my balances at the present time, or, get them all under 30% utilization and then pay them monthly on time?
Message 3 of 7
Moderator Emeritus

Re: Should I open a new small cc to balance out negatives on other card???

Get them under 10% asap.
Then keep them between 1-9%

Redbud wrote:
Thanks Tuscani for your reply.  I applied to Orchard online and was approved even though it's a low credit limit.  I'll use it strictly for gas and set it up for automatic payment.  I'd like to ask you another question:
 
Is it better to pay off all my balances at the present time, or, get them all under 30% utilization and then pay them monthly on time?



Message 4 of 7
Established Member

Re: Should I open a new small cc to balance out negatives on other card???

Thanks for your response.  In all the material I read on the myFICO site and a couple of others it said you should keep utilization on a card at 30% or lower.  Is keeping it at 1-9% just taking it up a notch in terms of raising my credit score?
Message 5 of 7
Super Contributor

Re: Should I open a new small cc to balance out negatives on other card???

The consensus is that 1-9% is the optimum level for a maximun FICO score.  If your FICO is important (eg for getting a new loan or mortgage) this is the way to go.
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Message 6 of 7
Highlighted
Established Member

Re: Should I open a new small cc to balance out negatives on other card???

Thank you!  I am learning sooooo much through these forums.  I have become FICO-obsessed!  Is that an acronym FO (FICO Obsessed!)?    I am not shopping for a mortgage or loan presently, but I do want to seriously raise my score since it's in the low 500s!!   I travel a lot for business, and need to use my card alot so I'm not sure I can consistenly keep it at 9% util.  That depends alot on how soon my clients reimburse me for the travel expenses. I really hate to take money out of savings to pay these balances, but I guess that's the best thing to do huh? That's gonna hurt!
 
9% will be my goal!!
Message 7 of 7