Credit Cards - Time schedule for applying for new cards?

[jc7622]

New here and am trying to rebuild my credit.  Was about 750, now a FICO8 at about 650.  I hadn't checked it in a while because I fell into the trap of paying cash for most things, closed my credit cards, paid off my mortgage.  Now I'm seeing that wasn't a good idea after applying for my most recent car loan (not the best rate) and I'm planning on getting a new mortgage for a different house.

myFICO suggested that my score is low because I have:  too few accounts, no recent activity of revolving accounts, no recent activity on credit cards (since about 2012).  I also have not had a mortgage since about 2010.  I also had a few late pays on two cards back in 2009, but my score was 750 since then.

Currently I have two open accounts, auto loans both paid on time.  One in 2013 ($23K down to $16K).  One in 2015 ($33K down to $31K).  I have several older accounts on my reports that have all been paid off (two mortgage lenders, two car loans, a few credit cards).

I just applied for a Citibank card and was then turned down.  Then immediately applied for a Capitol One Quicksilver One and was accepted with a $3000 CL (kind of humbling after having cards a few years ago with big limits).  I hope it wasn't a mistake applying for one right after the other.

My question is, when should I apply for a second card?  And another card thereafter?  Is there a correct length of time to wait?

Edit:  And feel free to offer any other advice...

[happypill]

You should have 3 CC accounts for best score results.  At this point, that would probably help you more than any impact on age of accounts.  Once you've established your accounts for a period of time (6 months or so), you will be well on your way to higher limits and easier approvals given your scores.

[Anonymous]

Jc, my situation was probably very similar to yours. I dropped out of the credit game for 8 year's following my 2007 BK. I lived on cash and prepaid cards for everything. I didn't have a single open CC. This past January my wife finally threatened me with divorce if I didn't change my ways and start working towards a mortgage in 18 - 24 months. I pulled my 3 CR's in Jan and my scores were all mid 500's. I opened 3 CC account's, two secured (Wells Fargo 2k & US Bank 1k), and an unsecured Credit One card (400. CL). In just 3 month's, by May, all 3 of my scores were over 700, with my EX up to 790. My EX deleted my public records which contain my 2007 BK and two open judgements, and that's why it climbed so high compared to both EQ and TU. As of mid May, I've since added Cap One QS 5K CL, Venture 20K CL, Chase Slate 5500. CL, CSP 15K CL, Wells Fargo 2500. CL, AMEX PRG, Delta PLAT 4200. CL, BCP 1K CL, SDFCU 1K CL.
So in your case, the good news is, you should be able to significantly raise your scores, and quickly, if you don't have any derogs, just by opening up a few accounts. You definitely need a minimum of 3 CC account's. Credit Limits are not important and it makes no difference if they're secured or unsecured accounts. Luckily if your scores are low based only on non credit use VS derogatory info, you're in great shape.
With Cap One, Chase, and Amex , I did not do back to back apps. Instead I choose to open the second card about a month after the first account. I did receive additional HP's from Cap One and Amex, but not Chase. It's up to you if you want to do back to back apps, but Cap One will probably approve you for a second card if you're interested. If you wait a month or two, you might do better with your initial CL, especially if you use the first card alot and PIF. Good luck.

[Creditaddict]

I would apply for Capital One Venture right now!

Discover it also.

[SOGGIE]

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@Creditaddict wrote:

I would apply for Capital One Venture right now!

Discover it also.

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I agree.

[Anonymous]

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@Creditaddict wrote:

I would apply for Capital One Venture right now!

Discover it also.

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Says the addict

[Anonymous]

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@Creditaddict wrote:

I would apply for Capital One Venture right now!

Discover it also.

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I agree!

In my wallet: Venture 15k; Barclay Ring 12.5k; Discover 10k; CareCredit 7.7k; Amazon Store Card 5k. QS 5k; Band of A Travel Rewards 3.5k; Bank of A Travel Rewards 3.5k; Bank of A Platinum Visa 2k; Barclay Apple Rewards 2k. Total Credit: 66,200. 7/2-FICO: EQ - 788; TU - 777; EX - 690; Utilization: 12%; GOAL: 780 across the board then 800 across the board. Inquiries: EQ: 5 TU: 6; EX 3; Chapter 13 seven years May, 2015. Reset my garden date to 6/27. Gardening until further notice.

[jc7622]

Thanks for the advice.  I just added a second one, an REI Mastercard through US Bank.  Only a $1000 CL but no fee, 1% back on purchases, 2% back on groceries and 5% back on everything purchased at REI (outdoor gear, which I buy a lot of).  With the member dividend I get 15% back on everything I buy there.  I'll eventually add one more card and start using them and paying off to $0 balance every month.  Hopefully that'll make my score start going back up.