More credit cards = better credit?

Question

I currently have one credit card and one checking account. My current credit card has an APR of around 12%. I just got an offer for another card with an APR of around 9%. My current credit card is maxed because I haven't been paid for work I've done this summer yet, but in about 3 weeks or so it will go back down to a $0.00 balance.

Should I get this other credit card to try to raise my credit rating?

I know that it is going to go down slightly because of the last 2 months statements on my current credit card. But if I do not accumulate a balance on my new card, only use it once or twice a month just so it's active, and keep my other card paid off as well, will this raise my credit rating? Or is having two credit cards a bad idea when you are trying to build credit?

Answer 1

It is a good idea to hold up to 5 cards at once. Leave a small balance on each (30-50% max) and do not close them. If you end up paying one all the way off DO NOT close it, just leave it inactive. You should do a balance transfer to get rid of half of the balance of your 12% card.

Answer 2

It really depends on what rewards you're looking for. If you want cash back, airline flights, cash back for spending, cash back for gas. It also depends on how you pay on your credit card, If you pay it all back every month, the sky is the limit. Do you mind paying an annual fee? If you don't mind, then I would go with American Express. I heard it's like $125 but the people who told me about it said it was amazing. Someone bought a TV, which came with a warranty, but AMEX gave a 3 year warranty above and beyond what the warranty they got in the store, then something happened to it during the AMEX warranty and they replaced the TV. It was a high ticket item too. Any credit card will work well, provided you ALWAYS pay the bill. Don't EVER miss a payment. HSBC has a good card. You can check online. Sorry I couldn't be of more help. I hope this helps

Answer 3

Getting the second card would improve your debt to available credit limit ratio which would improve your score. But paying off the maxed out card would do the same thing.

Having 2 major credit cards would be fine. You just don't want to make a habit of carrying balances. The interest will eat you up.

Answer 4

They say to help your credit score you should have 3 credit cards, but don't max them out. Us only 80% max. Then pay them off in three months,1/3 at a time. Use them for your everyday stuff like gas and food. Just make sure you set that money aside to pay them. Because if your not careful you could make your credit really bad by not paying them.

Answer 5

In my experience there are two types of Bad Credit Credit Cards. One is a secured card, and the other has a much higher rate of interest. Both can be used to rebuild your credit worthiness after getting back on your feet. Secured credit cards are great for rebuilding your credit. You send the credit card company a pre deposit amount set by the companybit of interest for you. After establishing yourself with the credit card company, they may decide to give you a unsecured credit card or increase the limit on the one you have with them without having to make another deposit. Secured credit cards are a good choice for anyone wishing to rebuild their credit history.

Answer 6

no, there is a fine balance,
www.ConsumerAction.gov
do your self a favor and get this hand-book. Too many inquiries on a report can be bad, just one line, but it is not current, Not Good!!
but there are a few factors to consider....
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