Help with my credit rebuilding plan - plus credit card question
How many credit cards = too many? Or does the limit total of your cards make the most difference? What I'm basically wondering is which effects your score more. If i had 10 credit cards with a total of $10,000 limit or 1 credit card with $10,000 limit. If it makes a difference between the two and if there's a cutoff they look at for having too many open accounts.
This is what I'm currently doing.
-I have an auto loan that I opened in Jan 07. Paying on time with nothing late.
-I have 3 unsecured revolving credit cards. A $300 limit I just paid off in full. Opened Jan 07. A $600 limit I just paid off in full. Opened Jan 07. A $500 limit with $85 on it. Opened April 07.
I'm planning on charging something small under $35 on each card each month and paying it off. I also plan on keeping my credit cards at 3 and not opening others so I can establish them with time. With credit limit increases applied for every 6 months.
Re: Help with my credit rebuilding plan - plus credit card question
I agree with Ok, the second scenario is much better, try working on getting your credit limits increased over the year which will most definetly improve your Fico score. Every time I got a credit line increase, and didnt charge anything that same month, my score shot up 17 points.