Money experts: I have one credit card, is this bad?

Question

I have a "good" credit score. I have one credit card + a student loan. I watch my score so I can qualify for lower interest rates on future loans (auto, home) and save money. Is having one credit card bad?

Answer 1

If you pay off your balance every month or your keep less than 30% of the credit as carryover then it is not bad.

Just keep a job for a long period of time and stay in the same residence for a long period and those will help you out greatly.

I would get one more card and setup a bill for it to pay every month like your phone or internet. Then just pay off the credit card every month. You could also use the card just to get gas and then pay that off every month. This will show that you have more open credit which is one of the factors in the credit score.

Answer 2

Keep the balance under 50% pay on time every month and dont switch credit cards often. Loaners can see when the account was opened and like it if you have had the same account for a long time. It shows loyalty and that you will not refinance every 6 months. That means they make more off you and are more likely to give you a good rate. Also, make it a major card like Mastercard or Visa. They check that, too.

Answer 3

Not at all. Using one credit card responsibly is far better than using several recklessly. You are also building credit through on time payments of your student loans and payment of utility bills. The only reason I have more than one is that I keep my oldest account with the largest credit limit open for emergencies or unusual purchases, and that makes two accounts.

Answer 4

Depends on how you use it. If you go out and use it all the time and fall back on your payments it's bad, but if you can keep up with your payments and are responsible about not using it all the time then it's not bad. It all depends on your responsibility.

Answer 5

no its not, but it depends how you will use it!