I have no credit and got a credit card to build my credit and I am being responsible with it but?

Question

Is it bad or good for me to have 2 credit cards, i just use a little at a time and pay it off before its due, my cards are credit one bank and the other i applied for is capital one and its coming in the mail so is it bad to have 2 crdit cards with no credit score and will it help build my credit?

Answer 1

its fine. as long as you pay them regularly (i pay mine in full everytime so that i dont have to pay interest), you'll have perfectly fine credit, whether you have 2 or 200.

Answer 2

Hi there. Having 2 cards is fine. Just don't overdo it. When creditors look at your credit report and see that you have a number of credit cards with moderate balances, even if they are all paid on time, that can start to have a negative effect on your overall credit rating.

Why is that? Because there are numeric factors in figuring your credit score that actually SUBTRACT points for having too much outstanding credit. For example, if you have 2 cards with $1,000 credit limits on them, that means you could potentially go into debt $2,000 overnight. That's not much debt, but let's say you had 5 cards or 10 cards (not uncommon these days). Having that much potential credit card debt is almost as bad as having that much ACTUAL debt, because with a credit card, you can spend the whole amount anytime you want.

My advice is, use the two cards carefully and keep paying off those balances IN FULL each month. Your credit score will go up and up, making you a great credit risk when it comes time for you to buy a car or a home.

Oh, and once you get those first two cards, call the 800 number to OPT OUT of any further card offers. That way you won't be tempted to take on more potential debt than your income can handle.

Good luck!

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Answer 3

Actually 2 credit cards are better than 1, just dont' get a 3rd.

Keep doing what you are doing. Paying off each month is the best way. However if it does start to build up, just make sure the balance you owe is always less than 50% of the total credit limit you are alloted. This helps keep your DTI (debt to income) ration low, so that when you need to apply for a loan (car, house, etc) you will have a better chance for approval and probably a better interest rate.

They will help your credit score as long as you continue being responsible with them.

Answer 4

Actually, as long as you keep your credit cards at a balance less than 80% of the credit limit, and make your payments on time you will continue to build your credit. However, it sounds like you manage to pay off the balances every month after using your cards which is even better. What you want to try to do is maintain a good payment history, as well as show that you have credit lines available that are not "maxed out".

Answer 5

Credit is built by having debt and paying it back on a timely basis.
Two credit cards are fine. Just be careful that you don't get sucked in to the credit card world of applying every time you want
to get a discount. Your credit score (called a fico) is determined by the amount of credit and the way you pay. Most score on 12 to 24 months so it takes some time to build. Closing cards that you have had for a period of time but don't use often with good history can change your score because once you close you no longer have that history to score. I attached a link for you to veiw.
Hope this helps

http://moneycentral.msn.com/content/Banking/Yourcreditrating/P41876.asp?GT1=5734

Answer 6

The sad fact is you can't get and build credit without using credit.

So long as you are paying your credit card payments (and other bills such as car payments, rent and utilities - YES those affect your credit score as well) on time, then you are building good credit.

Just be careful to not overextend yourself by spending more on the cards than you can afford to repay.

Also, a good tip is to pay the minimum payment plus a small amount. Minimum payments are calculated in such a way that by paying *just* that amount, you will eventually repay 2-3 times the amount you borrowed. In addition, depending on the limit on the card, it will take anywhere from 2 to 15 years to repay the debt.

By adding a small amount to each payment, say an extra $5-10 a month, you can cut the interest you're charged in half. Plus you will repay the debt in about half the time.

Answer 7

Typically having two credit cards will not be detrimental (one will get you about the same result though) Any more than 2 especially with high credit limits will hurt your credit. Never use more than 50% of the cards credit limit, that will also hurt your credit if you carry a balance. USe them then get home and mail the check and you should be fine. Resist the temptation to splurge

Answer 8

Per my friend the loan officer, never have more than 40% of your card limit used up. Per TransUnion, however, never use 35%. It shows that you are responsible with yor credit and do not urgently need another card because you filled up the first one. Just pay them on time and wait maybe 6 months or so, then check your credit score again to see what the improvement is.

Answer 9

credit cards are a good way to build your credit.Two is ok, but make sure to keep payments up. as for me i would rather start with a bank loan or morgage. less interest. another way , put so much in savings then borrow that amount or a little less. let your saving stand good for it. when you get it payed off you will have good credit with that bank and also still have your money in your saving plus interest. if needed repeat the process. no matter how little or large the amount is. you come out ahead of the game.

Answer 10

In terms of credit scores, there isn't anything wrong with having several credit cards (within reason). The most important things are to NEVER pay it late or let it max out - some credit scores are based on the balance to limit ratio. In terms of general life lessons, the most important thing is never to use it to buy something you can't afford to pay for immediately. This is the way most people get into financial trouble.

Answer 11

Credit can be tricky. Yes, it can help establish credit: IF they report it and report it correctly! Check you credit report after 6 months. You are entitled to 1 credit report per year for free - just go into a credit reporting agency and they will review it with you. BE VERY CAREFUL TO ALWAYS READ ALL THE TERMS AND CONDITIONS - know how much interest and fees you are paying and what happens if you are late or miss a payment - IT CAN UP THE INTEREST RATE DRAMATICALLY. Also, ONLY DEAL WITH WELL KNOWN AND ESTABLISHED COMPANIES- I recommend going through YOUR LOCAL BANK. IT CAN BE HELPFUL LATER TO HAVE LOCAL HELP IF YOU HAVE A PROBLEM. ALWAYS pay WELL BEFORE THE DUE DATE - ALLOW TIME FOR MAILING AND PROCESSING! One day can make the difference between 14% interest and 24% or more.
Good luck and God bless!