Use the credit u have instead of opening a new account?

[Anonymous]

(1) Is it wise to use the credit u currently have to transfer balances  than to open new accounts?  

(2) When is it adviseable to open a new credit card account? 

(3)  Is  it okay just to leave the balance of a new card  at zero for utilization purposes only?

SandyK

[Anonymous]

1) It's going to depend on your scores. If the cards you have and are being approved for have $300 and $500 CLs, and APRs of 24 percent, and most are at 50 percent util or more, don't expect a 0% BT AMEX Blue.

2) Before heading out to the mall.

3) Util of between 1 and 9 percent is optimal for purposes of FICO scoring.

[Cory]

Hello,

I think that this is a terrific question. I am a believer of using the credit card companies you have history with to better your life and raise fico scores.

But as the previous poster said, if the cards you have are costing you a lot of money each year, high APR, etc you might want to make plans to either refinance with the company for a better card or open another account with another lender.

GE Money Bank approved me last year for a Care Credit Account. Not because of my fico scores, because my fico scores were low, but because I have been a customer for a while with GE Money Bank. I have three credit cards with GE Money Bank.

What they did was look at my credit and said, he's not worthy with his fico scores, but because he has paid us on time every month for eight years we will take the risk on another account with a low limit but it's a jump start.

But opening a lot of accounts is not necessary. And be patient all good things come with time. There is no over night, microwave fico kit or scores it's all about time and patient.

Sorry to type so much, but that's just my belief. Use the companies that you have to established a terrific credit history.

Be Blessed

Cory

[Anonymous]

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@Anonymous wrote:

(1) Is it wise to use the credit u currently have to transfer balances than to open new accounts?

(2) When is it adviseable to open a new credit card account?

(3) Is it okay just to leave the balance of a new card at zero for utilization purposes only?

SandyK

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1. Yes for the short term because.
Inquiries stay on your account for 1 year lowering your score.
New accounts can lower your score for 6 months.

2. When you want more credit, new credit, need to build more activity, using a discount on a new card. But.
You do not want to do this when you need to apply for new credit with in 6 months.
Inquiries stay on your account for 1 year lowering your score.
New accounts can lower your score for 6 months.
I apply for new credit when I have 12 months to wait out the inquiries.

3. Yes. But if you do not use the card at all,
It can go dormant after a year.
You do not get points for UTL.
Best to charge at least $1 every few months.
$0 balance does not hurt you and you are not loosing much leaving it at $0.

[Anonymous]

Thanks everyone for taking the time to answer my questions!

Noah:  I'll remember to open a new account on my way out to the mall!

Cory and ILovePizza....I really learned a lot from your posts.  Didn't know about the inquiries ...ouch!!   I need just one more 0% balance transfer to have all my ducks sitting pretty for awhile and I do mean a long while.   The inquiry will lessen my scores again, but it will be a year before I even apply for a new anything for sure!

Again thanks everyone.  I'm about to transfer and forget 'em!! 

SandyK

[Cory]

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sankofa wrote:

Thanks everyone for taking the time to answer my questions!

Noah:  I'll remember to open a new account on my way out to the mall!

Cory and ILovePizza....I really learned a lot from your posts.  Didn't know about the inquiries ...ouch!!   I need just one more 0% balance transfer to have all my ducks sitting pretty for awhile and I do mean a long while.   The inquiry will lessen my scores again, but it will be a year before I even apply for a new anything for sure!

Again thanks everyone.  I'm about to transfer and forget 'em!! 

SandyK

No problem sweetie!

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[Anonymous]

[Anonymous]

LOL u two!