How many credit cards should you have to rebuild credit?

Question

I am trying to rebuild my credit after ID theft, a couple of problems that were mine and years of basically not having any credit reported. (I primarily use my debit card and pay cash for everything). I make good money now and am trying to rebuild in order to purchase a condo in the next couple of years. My good accounts (rental, club, cable, cell, etc.) have not reported my good credit. So how many cards should I take out that will help boost my credit score but not hinder my credit. Thank you!

Answer 1

I would take out no more than 2. I would start out with a secured card. Granted you would have to put a deposit upfront to secure a line of credit, but the deposit would also garner interest while you're proving your creditworthiness. You could start out small, like $200-300 or larger like $1000-2000. Either way, I strongly suggest you to continue to use your debit card and pay cash like you've been doing, and make small purchases that you can pay off in full every month (around $20-50). I would only use the credit card in dire emergencies. After the secured card becomes unsecured, then you could receive offers for other cards, but chances are just the one card could work just as well. Be sure to dispute anything that was involved in the identity theft and make sure that you have a POLICE REPORT. Your "good accounts" (rental, club, cable, cell, etc.) CAN be reported through this reporting agency called PRBC. (http://prbc.com/default.php?) This is for REAL. You can have your good credit reported and complied in a scored report that can be considered with your traditional credit reports. It's become increasingly popular and I'm certain that it will help you out immensely.

Answer 2

I have never had to rebuild credit but I am quite positive that the problem with bad credit is that someone, somewhere isn't good with credit. And that has got nothing to do with how many cards this someone has.

RE:
>How many credit cards should you have to rebuild credit?
>I am trying to rebuild my credit after ID theft, a couple of problems that were mine and years of basically not having any credit reported. (I primarily use my debit card and pay cash for everything)....

Answer 3

I have never had to rebuild credit but I am quite positive that the problem with bad credit is that someone, somewhere isn't good with credit. And that has got nothing to do with how many cards this someone has.

Answer 4

You can request your good credit to be reported as usually the utilities won't report unless you have an issue.

Get two cards and use them! Pay off immediatly and let them up your available balance as you go. The debt to asset ratio does not apply to you. Again two cards (say Visa and Amex) and you will be fine. It will take time but after a while your credit score will start jumping up.

Answer 5

An absolute maximum of 3. You dont want too many new ones all at once becuase that hurts too.

Start with 2, keep the balances below 30%, and pay on time each month. Dispute any old/bad information that you want off and see what gets removed-- even real debts that are yours. Pay any old collections/delinquincies.

Dont get any more inquiries except for the two cards!

Answer 6

You don't need ANY. Find a mortgage lender that still does 'Manual Underwriting'. That's what they call the process lenders used before FICO came along. They look at your income and debts (if you had any, you wouldn't have asked this) and actually DECIDE if you are credit worthy. Anyone doing manual underwriting WILL consider your cable, cell, phone, etc. You may have to sign a release allowing them to check with the cable company, etc., but if you have a good payment history, that's not a problem.

Answer 7

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Answer 8

Only one!! and just keep up with the payments.

Answer 9

You only need one to do that. Don;t let anyone sucker you into debt.