One card with a higher limit versus two with a lower limit

[Anonymous]

I've been working on improving my credit for a while now, and I'm wondering what's more beneficial for credit building purposes between having one card with a higher limit versus having two with an equal limit between them. I have two major ccs and au on another, two retail cards and au on two more retail cards if that makes a difference. 

[webhopper]

Definately 2 is better than one for rebuilding purposes. As your age of account grows and your needs change; don't feel shy about evaluating other cards to determine if they fit your needs. Also don't feel shy about closing cards with fees once you have better cards to rely on.

[Anonymous]

I have one credit card with a 7000 limit and one with an 800 limit. Both of them are newer accounts. I applied with the same bank that gave me the higher limit but got declined because my credit history isn't long enough. It's not the increased credit I'm after as much as the increased history to build from. I was thinking about trying a recon with them and offering to split the limit between them and hopefully get my limits increased eventually. Does that make a difference? 

[webhopper]

Which bank issued these cards?

[Anonymous]

US Bank gave me the bigger limit. Discover gave me the 800. The retail cards are Ann Taylor and Target.

[Anonymous]

Just to be clear:  You are trying to Build your credit history and not REbuild due to negatives or baddies on your Credit Report, correct?

[Anonymous]

Just building.

[Anonymous]

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@Anonymous wrote:

Just building.

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In that case, i would recommend to just sit tight.  You just need time to garden your length of history and let your AAoA grow.  You got 7800 in CLs.  That's pretty awesome!

Suggested Read:  

Credit Cards

When it comes to credit cards, always ask yourself "Why am I getting this card?". If your answer is need-based, such as needing credit for increasing expenses or wanting a lower interest rate to reduce monthly payments, then these may be perfectly legitimate reasons to open a new card. However, if you want a new card because it has a pretty logo or it's from your alma mater, then you might want to think twice. We recommend you only apply for new credit cards that you really need. When deciding if you need an additional card, it's also important to be aware of what's called credit utilization.

After asking yourself "why you need more credit", then ask yourself "How much more credit do I need?" If you only need a small amount to pay additional bills for a few months, try contacting your existing credit card companies to get your credit limits raised first. Why is this a better option? While a request for an increased limit may count as an inquiry just like opening a new card would, it won't reduce the average age of your credit accounts, which is also important for your FICO score.

If getting the limit raised on an existing card isn't an option, then try to apply for the fewest number of credit cards so that the combined credit limit meets your needs. If you think you need an extra $5,000, try to get one card with a $5,000 limit rather than two cards each with a $2,500 limit. When applying for new credit cards, each application is counted separately as an individual inquiry on your credit report, and the more inquiries you have, the more that could hurt your FICO score. Historically, people with six inquiries or more on their credit reports are eight times more likely to declare bankruptcy than people with no inquiries on their reports. So having more inquires makes you look more risky to potential lenders.

(From):

http://www.myfico.com/crediteducation/questions/credit-inquiry-help.aspx

[Anonymous]

Thanks for all the responses. I'm still just learning about all this stuff. It gets kind of confusing trying to figure out how to best improve your score and build your history. I'm hoping to prepare for a mortgage approval in two years or less.

I'll keep checking back to see if anyone else weighs in. Thanks.

[webhopper]

You are starting with two amazing cards I'm going to assume that you maybe had a banking relationship with us bank? Either way you have two awesome cards. You may be able to call discover and ask them if they could match your us bank credit line. If they don't; no worries! Just check into the garden; and you can have your pick of any card in about a yr. Best of luck to you! Hopefully I will see you in the garden club!