Open multiple secured cards or build higher limit on one?

[cp94550]

I'm going in today to open up a secured credit card with my credit union.   I asked for a $300 limit, since I'm really just using the card to build up credit, and am not looking for a high limit card for spending, etc.  

I'm wondering if I should open an additional secured card, also around $300 limit, or if I should just start with the one card, and add an extra $50-$100 every month, which will build up the limit on that card.  Or do I just leave it at $300 and that will be good enough?

I'm trying to get the best score boost, in the least amount of time... aren't we all?  Any thoughts on which would have a better impact on building my score?

[PixieQueen80]

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@cp94550 wrote:

I'm going in today to open up a secured credit card with my credit union.   I asked for a $300 limit, since I'm really just using the card to build up credit, and am not looking for a high limit card for spending, etc.  

I'm wondering if I should open an additional secured card, also around $300 limit, or if I should just start with the one card, and add an extra $50-$100 every month, which will build up the limit on that card.  Or do I just leave it at $300 and that will be good enough?

I'm trying to get the best score boost, in the least amount of time... aren't we all?  Any thoughts on which would have a better impact on building my score?

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The credit limit does not really matter if you keep your balance under 10% of whatever it is.  A $3000 limit with $300 is equivalent to a $300 limit with $30 on it.  What is important is how much of a balance you want to carry on the card.  If you want to charge more on it then go with a higher limit.  Also each new card will change/shorten your average age of account so opening up too many too quickly might not be good if your account history is short. 

[cp94550]

Thanks for the input.  I'm not really looking to use the card much, just a little bit and report between 1%-10% utilization.  I'll probably just keep using my debit/checking account for other purchases.  I wasn't sure if showing a higher available credit would bump my scores.

[RobertEG]

Categorization, or "bucketing," of your credit file profile is a preliminary part of credit scoring. All consumers are not scored using the same algorithms.  Determining which scoring brakcet will be used is important.

One aspect of categorization is being placed in what is often called a "thin credit file" category.  FICO likes to see multiple lines of revolving credit, as it weights your use of discretionary, revolving credit higher than it weights installment credit.  It appears that the absence of multiple revolving lines of credit thus places you into a thin profile.

So, to put that in English, it is important, in my opinion, to have at least two revolving lines of credit.  I would thus open a new card rather than rely on only one.

Credit limit, as has been said, is not the important factor.

It is best to open essential accounts as early in your credit building process as possible in order to begin building average age of accounts.  Waiting will harm your AAoA.