Should I get a 3rd Credit Card?

mintons · ‎03-19-2014

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!

Anonymous · ‎03-19-2014

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.

Creditaddict · ‎03-19-2014

@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.

Anonymous · ‎03-19-2014

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.

Chris679 · ‎03-19-2014

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)

fot1 · ‎03-19-2014

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..

Too many to list..

angelcred10 · ‎03-19-2014

@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.

Starting Score: 635 Current Score: 659 Discover Pull
Goal Score:720s
Tried to use Images but it was all Wibbly, Wobbly, and Timey-Wimey.

mintons · ‎03-19-2014

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

mintons · ‎03-19-2014

@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!

mintons · ‎03-19-2014

@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.