I already have one credit card which does the job and has help me get a good credit score. As I read my credit report today, it said that if I wanted to bring up my score I should get credit cards from retail stores and that I have "too few accounts" on it to bring my score up. I was thinking of getting a citi card b/c it has excellent rewards and also a target visa card since I shop there a lot. My question is IF I end up getting approved for both cards, would it be smart for me to keep all three cards? I mean I'm probably not gonna be charging much on my original card since it has crappy rewards. Would that affect my score? Plus I heard that if you cancel one of your credit cards, your score goes down. Im trying to figure out how I should play this out because Im hoping to have an above average score for when I buy a car in another year. Does anyone have any advice?
2007-04-15 12:33:54 · 8 answers · asked by YankeeBaby 2 in Business & Finance ➔ Credit
Be careful with credit cards. Edmunds has some interesting information on credit scores ... http://www.edmunds.com/finance/credit/articles/47274/article.html .
2007-04-15 12:54:20 · answer #1 · answered by Understanding 1 · 0⤊ 0⤋
If you can handle credit and credit cards wisely, then it may benefit you to get those two other cards.
Since your credit file is limited, you would see a score drop from the inquiries and from the reporting of the new accounts.
Though at 6 months you should recoup the lost points from the inquiries and also the inquiries will mean less to your overall scores. At one year the inquires will have no factor in your scores or reports. If a creditor does a manual review of your report after one year, they may not even count it
If you don't pay a fee on the first card, and you leave it open it will continue to help you. Since closing it would mean that you are losing the only history that is reported on on your reports, and that would definitely hurt.
Unless the fee (if there is one) is extremely high, you might wait to close that card until after you purchase the car.
If you pay a fee on the card, contact the creditor and ask that they waive the fee and also lower your interest if it is high.
You might just put it up and pull it out in 6 months to make a small charge on it - a hamburger or something, then put it back up and pay in full when the statement comes.
As long as you keep the accounts in good standing, in about 6 months to a year you will probably see your scores surpassing where they are now. Which will help you in getting a better interest rate on your car loan.
2007-04-15 13:08:20 · answer #2 · answered by echo 7 · 1⤊ 0⤋
Whatever advised you to get more credit cards was an advertisement. Getting more credit cards to improve your credit score is something businesses would love for the American consumer to believe. And, because credit scores are based on a bunch of information, some of it arbitrary, getting another card at this time may in fact, improve your score. That is not a REASON to get another credit card though. If you feel you are conscientious enough to get another card, review the reasons you might want to do this (forget the credit score while you do this). Does getting another card serve you in life? Is it convenient for you? Are the fees worth it to you? As you go through life, you will amass bills, and the prompt paying of them will also improve your credit score. Don't fall for the advertising ploy that getting credit cards is a benefit to you. Only you can determine that.
2007-04-15 12:45:52 · answer #3 · answered by Caper 4 · 0⤊ 0⤋
as quickly as I utilized to get a detect Platinum Card with out credit historic past they despatched me lower back a be conscious asserting i grow to be eligible for there detect classic Card. The pastime grow to be extreme yet there grow to be no annual fee. as a fashion to construct credit i might use the cardboard making constructive I had the money contained in the financial corporation to pay for what i grow to be getting and pay my invoice in complete on the top of the month. I controlled to get a detect Platinum Card with in a twelve months.
2016-10-03 01:11:54 · answer #4 · answered by ? 4 · 0⤊ 0⤋
it takes a while for good credit to accumulate. don't risk more than 2.
also, everytime you apply for a credit card, your credit score goes down.
credit rates/rewards are always changing. plan for the long run.
2007-04-15 12:39:58 · answer #5 · answered by 3dot3dash3dot 3 · 0⤊ 0⤋
Do not buy a car with a car loan. You're just throwing cash out the window.
2007-04-15 12:53:07 · answer #6 · answered by i♥sf 5 · 0⤊ 0⤋
Check out
www.fineliving.com
www.susieorman.com
great financial resources!
2007-04-15 12:38:35 · answer #7 · answered by TantraGoddess 2 · 0⤊ 0⤋
NO!!!!!
2007-04-15 12:36:57 · answer #8 · answered by fworkathome 1 · 0⤊ 0⤋