Getting a new CC: Yay or nay?

[ellefante]

I'm a newbie that fell on this forum from browsing the web on auto loans and credit questions.  Everyones improvement based off their signatures is amazing and I'm hoping I can improve my credit also.  From what I had found throughout the forum briefly so far is keeping a balance around 10% or below on a CC.  I'm looking to getting a new car this year, preferably soon but I really want to increase my credit first since I'm not in dire need of a new car.  I was careless and ignorant of the detriment my actions and credit would be to my future so I'm trying to get out of this hole I got myself in.  So my question is will adding a new CC to my credit benefit my case or to just wait for my next statement?

Currently:

I'm monitoring all 3 via USAA experian.  My score there is 573 right now. 

No auto loan

No mortgage

I have one CC with NFCU with a 2k limit, balance is at 1700.

A 500 overdraft protection with NFCU

There are 9 negative accounts .  A few were already closed and paid/settled.

I just recently paid/settled with 4 of those 9 accounts last month but from my understanding those accounts will still remain negative on my report, correct?

Anyway.... my minimum due on my CC is $0.  

I disputed the accounts I just recently PIF so it will be reported to my report sooner than later. 

It would still make sense to pay a a big chunk of that $1700 balance I still have on my $2k CC or is it too late? (I read some where on another forum to someone else to "just save your money and still make your minimum payments, the damage is already done")

And also, if it's smart to not get anymore line of credit and just depend on my CC to build my credit in my case? Or apply for another one for my DTI?  All I have is my CC and overdraft protection for line of credit.   TIA !

[guiness56]

You need to get the balance paid down on that CC.  It is at the maxed out point and that is another ding.

Whoever told you to make minimum payments since the damage is already done is very wrong.  Utilization is the fastest way to get your score to move.  Just because you are maxed out this month, paying it down to a much lower utilization will definitely help your score.  FICO has no memory of utiliization and you will be scored for what it is on the day it reports a lower %.  You need to know when the CCC reports to the CRA and get the balance down before they report.  After that you can pay the rest so you are not paying interest also.

All of the paid/settled accounts send out GW letters to see about having them removed.  You are right, the affect your score the same.

It is not a good idea to dispute accurate information and disputing to have it updated faster isn't helping you.

Some people with 800+ scores have no CC at all so higher scores are possible.  It isn't the number of cards or CL you have but how you manage them.

Another CC could help but the same rules would apply.  All but one report a 0 balance and the other at 9% or below for optimum FICO scoring.

[ktl72455]

Just wanted to say hello and welcome to the forums! Lots of great advice and nice people here to help you out!

[ellefante]

Thanks.  I'm just going to pay the balance down..

[ellefante]

Thanks!