$1000 on 1 secured card VS $1000 spread out over 3

[Anonymous]

I want to start rebuilding my credit.  I just received a $200 First Premier Card (i know i know) & now I'm looking into spending $1000 on a secured card(s)

Would it be better for me to...

1 - get a single $1000 card with Wells Fargo

2 - get 2 $500 cards (Wells Fargo/Orchard)

3 - get 3  $300 card?

So I guess I'm asking...is it better to have a card with a higher limit...or several cards with low limits?

Any feedback will be REALLY appreciated!! 

[BungalowMo]

I would go with the higher limit.  When (down the road a few months) you apply elsewhere for credit, they will see that someone gave you 1k in rev credit, so they may give you $1200 or 1500.  This is better than a potential creditor seeing 3 or 4 $300 cards & figuring "that's all this person is worth", so they extend the same.

The First Premiere....hey we all started with those, or one like it.  Mine was the Credit One with a $350 limit.  I still have it simply for the age factor.

[Anonymous]

Do you plan to use them or simply consider them an "investment" in rebuilding your credit.  (IE,  use once a month, pay off, rinse and repeat)

 If you are using the card,  you want one with a higher limit so your utilization ratio stays lower.

[Anonymous]

Hmm..from what both of your have said it seems like the higher limit card makes more sense. Thanks for the advice!

If I get a $1000 card, then yes...I will probably use it & try to keep the ratio (which I just started learning about) under 25%  As for the 1st premier card, I'll probably only use $50 and pay it off every month.

My credit is really bad. I made a lot of bad choices when I was younger. I'm turning 25 soon, and I've def. gotten wiser!  Everything is either in collections or charged off. Most of my negative items will be removed in 2011 & the last 2 in 2012. Not sure what my FICO is yet (waiting for EQ to verify my identity)

Right now I have 0 accounts in good standing.  It's been years since anything new has been reported though (except for the FIRST PREMIER card i got yesterday..hasn't been reported yet.

One of my goals is to improve my credit enough so in the next 10-12 months I have a chance at getting approved to rent a house.

[Anonymous]

That First Premier Card with $200..   I would keep that in your desk drawer and only buy a pack on gum on it every couple of months..  Pay it off..    With only $200, you dont want to have much of anything on there at all.  Consider it an Investment card..

[BungalowMo]

Actually, with that being your only cc, you don't want it posting a $0 balance....but around $10 or 15 is good.  Continually showing zero looks like you either haven't used it or you're afraid to.