I have 2 credit cards. One is secured with a limit of $200 which was how much I deposited when I opened it, and the other card is a regular card with $300 limit. I spend about 30-50% of my limit then pay off in full each month.
Are two cards enough or would a third card help build my credit faster? Also do you think I should increase my $200 limit higher? Will this be better for my credit?
Thanks!
2007-08-23 19:56:18 · 10 answers · asked by Marcel993 1 in Business & Finance ➔ Credit
As long as you pay it off, the more the better. I suggest having no more of a balance than 20% of your limit.
2007-08-23 20:00:48 · answer #1 · answered by rushmore223 5 · 1⤊ 0⤋
I think what you're doing is great! I would continue paying in full and not using more than 1/3 of your credit limit. If you are looking to increase your credit score, I would increase the limit on your secured card, charge around $100, and pay it off over a few months. It doesn't hurt to have a balance at times... in fact it shows a better payment history. Plus, the credit card company will value your business even more if you pay them a little bit of interest! I would need to know how long you've had these cards before I would suggest opening a 3rd card. If it's been longer than a year or two, It's probably ok to get another card. You don't want to open up too much credit in a short period of time. I hope this helps... Good luck!
2007-08-24 03:07:04 · answer #2 · answered by Anonymous · 1⤊ 0⤋
The more cards you have the more you risk not being able to pay them off each month. If you are trying to build or repair credit and you have a lot of cards you can actually hurt your credit score if for some reason the statement got lost in snail mail and you forgot to pay. Therefore, I believe you will be putting yourself at a greater risk.
2007-08-24 10:18:57 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Avoid too applying for too many credit cards all at once. When ever you check your credit score it leaves a mark. If you have too many marks too fast lenders thing you've hit a financial wall and are headed for trouble. One case that comes to mind is about a first time home buyer. They were approved for the home loan but it hadn't been finalized. The buyer thinking he was getting a home applied for a credit card to buy furniture. Because the loan had not closed the new credit card application caused the loan to be rejected at the last minute. This one application caused his credit score to drop to an unacceptable level and he lost the house. The moral: be careful with the timing of your credit card applications. Read more from: http://www.credit-card-gallery.com/article/136,Seven_Must_Know_Credit_Tips
2007-08-24 08:00:18 · answer #4 · answered by Anonymous · 1⤊ 0⤋
depends.for me 1 credit card is enough since i am a college student and get help from my parents.i have a $1200 limit on it though and use it in case of emergencies.if you want a card with a bigger spending limit then get it but cut one of the 2 cards that you have and cancel that card.i learned in economics that the more credit cards you have,the more you spend,the more you are in debt.i think that you spend too much money of your limit.here is my motto:do not spend more than you have..if you have $100 in cash then you know that the money you have has to last you..always keep cash at hand and use a credit card in case of an emergency..you do not need 3 credit cards to increase your spending limit..get one card with a higher amount that you can spend and cut the rest of them up.try to spend less what you spend right now otherwise you will be going in a never ending circle and cycle...save up money for dark days and use it only when needed..remember that credit cards can be both good and bad and so you might not want to abuse them.take responsibility for how much money you have as well as how much money you need to spend vs. want to spend..i hope that i helped..
2007-08-24 03:07:18 · answer #5 · answered by icycrissy27blue 5 · 1⤊ 1⤋
two cards is PLENTY!
They say that you should NEVER spend more than 30% of your credit limit...meaing your balance should never go over $60.00 on your $200.00 card and your balance should never go over $90.00 on your $300.00 card.
That is all you need there to build your credit. Credit cards are evil I tell you...been there, got trapped, went bankrupt...I would stick with what you have got.
Get a debit card and live off of cash except for a few small transactions on those cards to build up your credit cards.
You don't want to get into credit card debt...especially if you are a student or rebuilding credit.
2007-08-24 03:18:17 · answer #6 · answered by Kris 3 · 1⤊ 0⤋
You should keep your credit cards payed %20 or below your actual credit limit on that particular card. That is what looks best.
2007-08-24 03:02:14 · answer #7 · answered by wannabbutch 2 · 1⤊ 0⤋
Put both cards away for 3 months and do not use. Limit inquires. If you call for a credit line increase they might pull a bureau.
Do not apply for another card.
2007-08-24 03:08:30 · answer #8 · answered by Gatsby216 7 · 0⤊ 0⤋
It makes no senst to have to many Credit Cards.
Pay your credit card bills ontime. That's important.
Be careful with credit cards.
good luck!
2007-08-24 04:53:53 · answer #9 · answered by Vampir V 3 · 0⤊ 0⤋
whatever you decide to do, make sure you pay them all off on time and in full that way your credit will only go up, thats what i do
2007-08-24 02:59:39 · answer #10 · answered by ahmed k 1 · 1⤊ 1⤋