I've had my mastercard credit card for 10 months, and I'm trying to improve my score.I've been paying on time every month but my score has only gone up 5 points.Should I get another credit card? My limit is only $500.00.
2007-07-15 11:44:44 · 6 answers · asked by Ice Mountain 1 in Business & Finance ➔ Credit
It will take years to go up much, pay your card in full every month and don't charge more than 30% or about $150 ever before paying it off.
2007-07-15 11:49:00 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
No! Getting another credit card could actually hurt you. You have to consider your debt/income ratio. Many people don't realize this, but having a credit card with no balance can actually hurt you as well, because it can be seen as potential debt. The more cards you have, the more potential debt you can accumulate. This can hurt when you apply for a loan.
The key is to make timely consistent payments over several cycles. Credit card companies assign a letter rating to your payments- A-G, G being "paid in full", and A being "minimum". You want to have your payment history reflect as many DEF's as you can, and a "G" every now and again.
You also want to demonstrate that you don't max your card out frequently.
Keep one card, manage it for a year or so, and ask the company for a limit increase. (it's actually smarter to ask for a lower interest rate, but most people are more concerned with "my limit is soooo high")
Also consider that your credit score is a reflection toward your other assets as well- property (do you own a house? a car?) and how many transactions you make per month.
It's not the amount you spend, nor is it the amount you pay back- it's how many times you use the card.
If you use it often and pay responsibly, then it demonstrates behavior consistent with a high score.
2007-07-15 18:54:53 · answer #2 · answered by Dina! 1 · 0⤊ 1⤋
Nope, just keep doing what you are doing....make sure there is NOTHING else on your report which may be bringing your score down (or slowing it's ascent). Too many inquiries can adversely affect your score, so don't apply for a bunch of things......time is the only real thing which with improve your score after you have taken care of the timely payment thing......
2007-07-15 18:49:16 · answer #3 · answered by Cara D 2 · 0⤊ 0⤋
Maybe you can try below website to get the information you need. It's about credit score and how you can improve it in 90 days articles for your second opinion.
2007-07-16 02:08:20 · answer #4 · answered by Barbara S 2 · 0⤊ 0⤋
it can take years, having multiple cards will not necessarily help - you can try taking a small loan out from your bank and paying it back after a month - make sure there is no early repayment charge - this can help raise your credit score - it takes time to build or rebuild credit
2007-07-15 18:50:20 · answer #5 · answered by Shopaholic Chick 6 · 0⤊ 0⤋
it takes too stinken long in my book, good luck :)
2007-07-15 18:48:18 · answer #6 · answered by Anonymous · 1⤊ 0⤋