I'm trying to build credit. 1 secured card with higher limit or 2 cards lower limit?

[TsuSurf]

I was approved for a capital one secured with a 200 deposit about a month ago.  I was thinking about getting a wells fargo secured card with a 300 deposit.  What would be the best way to build credit?  Capital one is my first credit card.  I pulled my experian plus score which is 629.  I have about 4 or 5 hard inquries and 3 paid collections and 1 i have to pay for about 600.  What you recommend is the best way for me to build my credit besides paying off collections(which I'm doing right now)and getting them removed.  Should I increase my capital one card to 1000 or so or should I get a wells fargo secured account?  Any advixe would be appreciated thanks.

[bodybuilder510]

I would hang with the cap one secured for year and move on to more prime territory. Get goodwills sent to paid CA's and pfd to the unpaid one. I wouldn't get wells Fargo secured unless you really want their regular visa upon graduation. The both options will take an year regardless.

[TsuSurf]

Thanks for the reply.  I will work on these collections and just increase my credit limit.  Hopefully in a year or less I can get a prime card.  Thanks.

[FrugalRican]

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@jconvinced wrote:

I was approved for a capital one secured with a 200 deposit about a month ago.  I was thinking about getting a wells fargo secured card with a 300 deposit.  What would be the best way to build credit?  Capital one is my first credit card.  I pulled my experian plus score which is 629.  I have about 4 or 5 hard inquries and 3 paid collections and 1 i have to pay for about 600.  What you recommend is the best way for me to build my credit besides paying off collections(which I'm doing right now)and getting them removed.  Should I increase my capital one card to 1000 or so or should I get a wells fargo secured account?  Any advixe would be appreciated thanks.

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My first piece of advice would be: Get your REAL FICO score.

That 629 is a FAKO and is really not an accurate representation of what your scores are at.

I'd suggest getting the Equifax FICO score on this website.

[Revelate]

You want more than one card to rebuild with.  Get a Wells secured or any other, doesn't really matter much but you don't want to just be increasing your positive payment history on one tradeline, you want a second at a minimum or even a third.  

One card is just dragging the process out for longer, and making it more painful FICO-wise than it needs to be.

[TsuSurf]

I'm in the process of getting a EQ FICO score and I realize EX is a FAKO score but it's all I have until I get an EQ score.  Another bit of information is my debt of total collections paid and unpaid is less than $1,500.  Just excited to start building some credit.

[TsuSurf]

Do you think adding another inquiry is worth it to add another secured card?  What would you consider too many inquiries?

[RobertEG]

With the emphasis placed by FICO on showing of effective use of discretionary, revolving credit, all I have read indicates that having at least two revolving accts is favorable to long term FICO score improvement.  Higher CL on just one card does not show the effective securement and use of multiple revolving TLs, and the CL itself is not scored by FICO.

You can manage % util without higher CLs.

I would definately secure at least two revolving lines of credit.  The issue then becomes when to secure them.

To apply too early (i.e., before your score will most likely lead to approval) just creates frustration and builds unnecessary inquiries.

However, to wait will mean that the inevitable reduction of AAoA associated with the new card will be delayed.

[FrugalRican]

If you're rebuilding while having baddies, the last thing you should be worrying about are inquiries.

You need those inquiries if you want to rebuild.

[TsuSurf]

Based on the information I provided what would any of you consider a good FICO score goal for me to have in 6 months to a year.  I realize I don't have a real FICO score yet.