| More Cards = Better Score? |
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yasch
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Joined: 26 Nov 2006
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| More Cards = Better Score? |
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I only have one credit card. I have a 10k limit and have never paid any finance charges � I always pay the full balance when it is due.
Would it be wise for me to apply for another credit card so that I have a second line of credit? Would that raise my credit score and make it easier to get a mortgage in the future?
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Sun Nov 26, 2006 11:44 pm |
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efflandt
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Location: Elgin, IL USA
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Something to ponder is what happens if that 1 card is suddenly rendered unusable when you need it.
I was on a trip to California once and upon return found a letter asking me to call my bank. Apparently while I was gone, someone attempted to order 3 sets of flowers by 800 number, but using the wrong name. The flower company immediately reversed the charges and the bank flagged my card. So they did not accept an attempted bogus charge from an online travel agency in Florida. The only unrecognized charge on my statement was a $205 charge at a drug store in Berwin, IL. I questioned when the charge was made, what it was for, and who signed for it, because I could not imagine spending that much at a drug store and was out of state when it posted. Never got the full story, but the charge was dropped.
So suppose you are on a trip and stop for gas, or need an auto repair (battery, water pump, tire, etc.), or stop at a motel after a long day, but they say, sorry we cannot accept that card. Do you carry the cash, or a least a debit card with enough currently in your checking account to cover it?
PS: I use a PO box for billing address, so someone did not get that credit card number from grabbing something out of my mailbox at the street.
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Fri Dec 01, 2006 2:04 am |
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Kiaser
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The only problem with having one card is that if the card is cancelled and another is issued to replace it (ie, it's stolen) then your long time revolving account history will be closed and restarted.
I wanted to dispute a charge on my Discover a year ago, but they decided to cancel the card outright without asking me then issuing me another. It was the oldest revolving account in my credit history, and my credit score dropped pretty badly. Even after speaking with the credit department director they still would not reverse the closure of my credit card even though it had happened only 10 minutes before (saying it's out of their power). I asked them what would happen if an employee maliciously closed someones account, how would they fix that? They had no answer.
Anyhow, there are benefits to having multiple revolving accounts but I'd recommend no more than 3.
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Fri Dec 15, 2006 7:19 pm |
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moneyflow
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Location: New York
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I heard the one thing that will lower your credit score is if you have 2 credit cards and you close an account. Even if you have a card that is paid off and you don't use it, you should keep it open.
http://www.MoneyFlowForLife.com | http://www.DanielCassidy.ws
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Tue Dec 19, 2006 10:46 pm |
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bijan814
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if you get a second card, it won't bring your score up, your score will go up by time, and when you pay of a loan. I usally get a second card to transfer my balance , if my debts are high, just so I will have lower interest rate.
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Sun Jan 14, 2007 2:40 am |
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JCook
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Just for the purpose of getting a mortgage in the future you'll be fine with only one card and a good down payment.
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Wed Jan 17, 2007 2:52 am |
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bijan814
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Your score won't go up, but it won't go down either, it will go down one point, if your score is checked 2times.
But it is a good idea to have two credit cards.
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Thu Feb 15, 2007 12:47 am |
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bfanalej
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Location: va
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| i would say get another card |
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however, it's going to be dependent on how disciplined you are to make sure you don't get yourself into trouble. having more open credit can only increase your score to an extent (i hear that 3-6 credit cards is the hot spot).
and in one of the responses, he brings up a good point for emergencies...what would you do if for some odd reason your 1 cc gets denied and you have no cash/debit with you?
just a thought,
cheers,
brian
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Fri Feb 23, 2007 2:35 pm |
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Davy Dany
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Consider a secured credit card. To obtain a secured credit card, you open and maintain a bank account or other asset account at a financial institution as security for your line of credit. Your credit line will be a percentage of your deposit, typically from 50 to 100 percent. Application and processing fees are not uncommon for secured credit cards. In addition, secured credit cards usually carry higher interest rates than traditional non-secured cards.
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Sat Feb 24, 2007 8:34 am |
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Greer
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Location: Gold Coast
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efflandt is right, if you are a regular credit card user it would be good to have a second credit card for emergencies just in case something does happen that means you can't use your first one.
However coaster is right also, try and get a higher credit limit on your credit card (remember you don't necessarily have to use it all). The fact that your bank approves you for this will help your credit file and should help you in getting a 2nd credit card.
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Thu Dec 10, 2009 3:30 am |
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muaz alwi
Contributing Member
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Better pay in full ammount of your credit balance an dont trry to not have any second card.If we have a lot of cards maybe you will onvole in credit card trap.
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Sat Dec 12, 2009 5:12 am |
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