I just opened an account with capitol one which will have a limit of $1K. I've just started working on disputing/removing the collection accounts but then that will leave me with only my student loan as open and positive. I want to make sure I have a mix of installment and revolving accounts. Should I get a second secured card for another $1K or just add another $1K to capitol one?
If I should get a second card, should I do it right now and take the hit for having two inquiries and two new accounts or wait a few months and then open the second one. I've read about the negative impact of both inquiries and new accounts and I don't know if I should just take the hit now (while my credit is in the tank anyway) or wait.
Thanks in advance!
Adding a second card will add another positive TL to your CR. i believe it to be good for you. Let them age while you clean your report.
I have only been rebuilding for a few months, but I have a store card & 1 secured card and my score has increased.
I Had no credit so I got 1 secured card through Cap1 with a credir line of $300 and a First Premier cc (which I do not recommend only for low credit scores) I am assuming you have better than average credit since you have a CL of 1k.
I saw my credit start to raise from a score of 554 to high 500's within a few months of using the secured credit card and by using I mean not letting it sit in a drawer. I stared to see my credit improving so I took out another Cap1 with a CL of $200,again I started to see an improvement and with each month of USING the card my scores continue to raise, with each mnth I put $50 towards my CL with Cap1 because, take note this because you stated you were inquiring about getting a 2nd card with Cap1, they denied me a CLI since I had 2 accounts with them, so I recommend getting a second card with someone outside Cap1, I am sure you could get a Navy first as they have been known to be very relaxed giving secured cards with lower than average credit. (before I found myfico)
I started my endevour in January, my Experian is 637, 634 EQ and 724 TU (no negs on that one) I started with 27 negative items and I also was added to a Amex as an AU that gave me a bump of 13 points.
Dont feel so much intimidated with the inquiry's, I can say I have had 9 (i know) since December 2011, it counts for a small percentage of your of your credit score , maxed credit cards count for the most, 30%, but if you try to get a mortgage or auto loan it will be a issue, they count against your credit score for a year and stay in there for 2.
I hope a little of what i did and the mistakes i made help out just a little...
I would suggest getting a second secured credit card. At this point another HP will not matter to your scores.
I would suggest getting the second card with Bank of America. They are really good at graduating these cards to unsecured after you demonstrate 1 year of good credit behavior. They will send you your deposit back at that point.
Once your scores reach 640 you should apply for a Walmart card.
IMO...two secured cards are better than one. Some people believe one secured card with a higher limit is better, versus two secured cards with lower limits. The reason for that, is because by having one secured card with a bigger limit, it will help you in getting approved with other creditors with the same or higher CL down the road. I dont have a problem with that theory at all. But when I started rebuilding two years ago, I had absolutely zero credit card or tradelines open. So in my case, rebulding with two secured cards was better than one secured card. Hope that helps.
Oh, I forgot to add. While I do agree that the BOA secured card is a good to get, they are not as friendly to rebuilders compared to Cap One and the like. So you may have issues getting approved with the BOA secured card. I guess it doesnt hurt to try, but dont feel too bad if you get turned down.
Thank you so much for your advice, guys! I should clarify: the $1K limit I have from Capitol One was because I added $800 to the $200 they offered me. If I had found these boards sooner I would have known to split that into two cards with different companies insted of giving it to them. Now I know that the ratio of use to limit is just as important as the amount of the limit so I should have gone with lower limits and more credit accounts. I will go ahead and a get a second one next month and worry more about showing that I can use it responsibly and not worry so much about the limit on it.
Datx, I am terrified of getting rejected! I think I'll give them a call first and explain my score and situation and get an idea if I'm likely to fall within their guidelines. This time around I need to do a lot of research before I jump in. I saw on a few other boards that capitol one was the easiest to get and I just jumped at it. Only later did I realize that you can't ever graduate; you have to close that account and open a regular one when your credit gets good enough. But closing an account isn't good for you either. No wonder they're easy to get.... they know people are motivated to fix their credit and they get to keep them for ages...
Thank you for your encouragement!