topic Re: Should I get a 3rd Credit Card? in Credit Cards

Should I get a 3rd Credit Card?

mintons — Thu, 20 Mar 2014 00:21:38 GMT

Hello All - I am in the process of rebuilding my credit, and currently have 2 credit cards:

Capital One - Limit is $2000 and balance is $80.00. The limit on this one was 500, but was just bumped to 2000 this week.

Credit One Bank - Limit is $1000 and balance is $70.00.

I have never had a late payment on either of these credit cards from the time I got them 2 years ago.

My credit is SLOWLY creaping up, and is currently at 650, was at about 520 over a year ago, but it seems to have plateued quite a bit...not much movement. So my question is this, would it be beneficial to open another line of credit?

I have a card offer to open with a 1000 limit, and it will double in 6 months to 2000. Would this be a good thing to help with the upward movement of my credit score?

As for other accounts, I have two auto loans, and 1 student loan.

Thanks!

Re: Should I get a 3rd Credit Card?

Anonymous — Thu, 20 Mar 2014 00:33:55 GMT

You may wish to add another card for long-term purposes such as qualifying for a mortgage.

For the sake of variety, you could go talk to some local CUs and see what they can do for you.

Re: Should I get a 3rd Credit Card?

Creditaddict — Thu, 20 Mar 2014 00:38:08 GMT

@mintons wrote:
Hello All - I am in the process of rebuilding my credit, and currently have 2 credit cards:

Capital One - Limit is $2000 and balance is $80.00. The limit on this one was 500, but was just bumped to 2000 this week.
Credit One Bank - Limit is $1000 and balance is $70.00.

I have never had a late payment on either of these credit cards from the time I got them 2 years ago.

My credit is SLOWLY creaping up, and is currently at 650, was at about 520 over a year ago, but it seems to have plateued quite a bit...not much movement. So my question is this, would it be beneficial to open another line of credit?

I have a card offer to open with a 1000 limit, and it will double in 6 months to 2000. Would this be a good thing to help with the upward movement of my credit score?

As for other accounts, I have two auto loans, and 1 student loan.

Thanks!

Who is the card offer with? Merrick? What are the fees?

You are getting close to or maybe already able to get a credit card with Barclay and Discover and I would replace the Credit One.

Re: Should I get a 3rd Credit Card?

hyp0luxa — Thu, 20 Mar 2014 01:20:00 GMT

I applied for a Chase Freedom and BOA 321 Cash Rewards card the day after my Cap1 (only card at the time) was auto CLI'd to 2k. My EQ and EX fico's were in the 630 range at the time. Adding these has definitely been beneficial to me. After 5 months my EQ and EX fico's are now in the 670 range.

Re: Should I get a 3rd Credit Card?

Chris679 — Thu, 20 Mar 2014 01:41:14 GMT

I would dump Credit One if there are fees and apply for two of these:

1. Local CU (to build relationship)
2. Discover IT (rewards and free FICO)
3. Walmart (free FICO and can upgrade later)

Re: Should I get a 3rd Credit Card?

fot1 — Thu, 20 Mar 2014 01:50:02 GMT

You have loans and CC's that should be a good mix to improve scores all on there own.. really no need to add another.. Although replacing Credit one with a prime card would save you money on interest and fees.. Maybe go after what it is that is holding your scores down.. PFD's GW letters that suort of thing..

Re: Should I get a 3rd Credit Card?

angelcred10 — Thu, 20 Mar 2014 02:08:32 GMT

@Chris679 wrote:
I would dump Credit One if there are fees and apply for two of these:

1. Local CU (to build relationship)
2. Discover IT (rewards and free FICO)
3. Walmart (free FICO and can upgrade later)

upgarde wal-mart?

As for the other suggestions, yeah I would recommend Discover very highly!!

not so much the wal-mart since Discover now includes the FICO too!

EDIT: also, if the credit one is charging rates, dump it after it's paid off.

Re: Should I get a 3rd Credit Card?

mintons — Thu, 20 Mar 2014 03:27:29 GMT

Hi there, yes, that is what I am trying to get to....qualifying for a mortgage!

Re: Should I get a 3rd Credit Card?

mintons — Thu, 20 Mar 2014 03:32:00 GMT

@Creditaddict wrote:
@mintons wrote:
Hello All - I am in the process of rebuilding my credit, and currently have 2 credit cards:

Capital One - Limit is $2000 and balance is $80.00. The limit on this one was 500, but was just bumped to 2000 this week.
Credit One Bank - Limit is $1000 and balance is $70.00.

I have never had a late payment on either of these credit cards from the time I got them 2 years ago.

My credit is SLOWLY creaping up, and is currently at 650, was at about 520 over a year ago, but it seems to have plateued quite a bit...not much movement. So my question is this, would it be beneficial to open another line of credit?

I have a card offer to open with a 1000 limit, and it will double in 6 months to 2000. Would this be a good thing to help with the upward movement of my credit score?

As for other accounts, I have two auto loans, and 1 student loan.

Thanks!
Who is the card offer with? Merrick? What are the fees?
You are getting close to or maybe already able to get a credit card with Barclay and Discover and I would replace the Credit One.

Hello @Creditaddict

Good guess...the Card is with Merrick, I dont really know much about them? As for the fees, it is with a 23.45% APR, which althrough very high, does not concern me too much, as I dont plan on using the card except for maybe a recurring bill such as a website domain name, just somethign that hits it each month, and that I can pay off immediately.

The Set Up, Annual Fee, and Additional card fee are all "NONE"

My wife got the same offer, but her set up fee was 72.00 for first year, 6 per month, and 12 per card.......but her credit is lower than mine right now.

So would you say to do it? or hold off until my score is a little higher and go for Discover??? Not sure where the Discover card range falls at?

Thanks!

Re: Should I get a 3rd Credit Card?

mintons — Thu, 20 Mar 2014 03:35:43 GMT

@fot1 wrote:
You have loans and CC's that should be a good mix to improve scores all on there own.. really no need to add another.. Although replacing Credit one with a prime card would save you money on interest and fees.. Maybe go after what it is that is holding your scores down.. PFD's GW letters that suort of thing..

Hi Fot1 -

Thanks for the response. Unfortunately, I dont have much left that I can go after on my report that will come off. I have a BK from 2009, not going to come off......and 6 or 7 accounts that were included in the BK that will be on my file for a couple more years. I did have 5 collection agencies that I worked with, paid for deletions, and they are all off. All my new open accounts now have been current since 2009.

Re: Should I get a 3rd Credit Card?

Chris679 — Thu, 20 Mar 2014 03:59:54 GMT

Walmart store card can be upgraded to the walmart discover. It's easy to get the store card so it is an easy way to start out. I think you are in good enough shape to not mess around with cards with poor terms. You have enough positive trade lines already, go for cards that you can be useful,

Re: Should I get a 3rd Credit Card?

mintons — Thu, 20 Mar 2014 04:04:54 GMT

@Chris679 wrote:
Walmart store card can be upgraded to the walmart discover. It's easy to get the store card so it is an easy way to start out. I think you are in good enough shape to not mess around with cards with poor terms. You have enough positive trade lines already, go for cards that you can be useful,

Ok, I did not know that Walmart had a discover card. So they have two cards on their website, the basic Walmart card, and then the Walmart Discover card. Are you saying to apply for the basic walmart card, and then you can upgrade it later on to the walmart discover card? What is the method to upgrade? do you have to make so many payments in time or something?

Or should I just apply for the walmart discover card?

Thanks for your input!

Re: Should I get a 3rd Credit Card?

fot1 — Fri, 21 Mar 2014 00:14:14 GMT

So for me now the questions are how old are your credit cards? Any Inquireis still factoring? And what time range you looking at buying a house?. i don't see adding a new card helping with scores.. Your ULT is good so won't help that.. You already have a good mix, and then you will take a hit for inquiry (unless you go a secured card) and then another with AAoA. Having a BK and the acounts listed your score of 650 is pretty good and not sure how much higher it can go..