I just received my first card this week from a very good bank. Also another application to Chase Bank was declined. I want to apply for another credit cards, is it a good idea? or it can be bad for my (just born) credit history?
Thank you!
2007-12-30 05:52:53 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
Every application results in a credit inquiry which dings your credit score. If you have multiple credit card applications in a short period, your score will take a huge hit!
If you had a lot of credit inquiries from car loan companies in a short period, it would be considered as just one. But that is not so with credit cards.
If you really want to build your credit, use the new card but only charge what you can afford to pay in full each month. In another 6 months or so, you can apply for another credit card. In the long run, you don't really want to have a big pile of credit cards just for the sake of having them. They each have to be monitored and secured to prevent problems.
2007-12-30 07:57:32 · answer #1 · answered by bdancer222 7 · 0⤊ 0⤋
Not only CAN it be bad, but it most certainly WILL be bad! Why did the other bank turn you down? Wait until you get the rejection letter as it will have an explanation, and if it is still not clear, call them. You must find out why they turned you down before you apply for anything else. Your future creditor's will be asking that question also. My guess is the first card has a limit that is acceptable and any more will screw with your debt to credit ratio. You never want to have more than 30% and never less than about 15%. In other words, another card puts you in a higher risk category. Expect to get many more offers now that you have been approved for the one as this kicks off a chain reaction. All the banks and lenders out there who buy any list with your name on it will now see that you have been extended credit, especially if you USE the credit.
I have written an e-book that deals with some of this as well as describing a FREE way to get ID theft protection while protecting your credit at the same time.
You can go here http://www.howtogooru.com/lifeguard.html
to download a copy.
Good luck and make smart decisions with your new credit! It is quite a lengthy project to fix it once it is screwed up!
2007-12-30 06:11:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Not a good idea. You only need one credit card and it should be paid off every month. Living above ones means is easy when you have a lot of credit cards but eventually things will catch up with you and your credit will be ruined because of unwise spending.
2007-12-30 06:22:58 · answer #3 · answered by Pancakke 3 · 0⤊ 0⤋
No it is not a good idea. Every time you apply for a credit card a credit check is run on you. Every time a credit check is run, you lose 5 points off your credit score.
2007-12-30 06:19:28 · answer #4 · answered by CarolSandyToes1 6 · 0⤊ 0⤋
I don't see why you would, you can get as many as you can get if others get ahold of them they can use them and you do have to pay them back you know? I don't have a lot of credit the bank is the worst to get me into credit that there is
2007-12-30 06:28:30 · answer #5 · answered by Friend 6 · 0⤊ 0⤋
ACcording to Experian, It is not bad to have inquiries of the same type in a certain period of time
2007-12-30 06:27:46 · answer #6 · answered by eyecue_two 7 · 1⤊ 1⤋