Credit Question...

J

Joshua312

New member
After reading through the other Credit thread, readings from Dave Ramsey, and watching the Suze Orman Show I am starting to question whether I should apply for another credit card. Merely on the fact that currently when I look at my debt to credit ratio I am putting all of my eggs into one credit card, allowing for that ratio to be high.



I have one credit card, with a $1,500 available limit and am wondering if I should open up another credit card with a higher limit and just let it sit to have my ratio change, because currently $150 balance would be a 10% credit to debt ratio, so you can see the numbers raise quickly.



I am not bad with money, but I feel this would help boost my credit score even more.



Just some more info on me to maybe help you answer this question...

Currently I am standing at a credit score of 715, I am 20 years old, have a car loan and have never made a late payment, and also have an active Roth IRA account I contribute to monthly.
 
jsatek said:
Dont open another. Just get a credit line increase from the current card vendor.



That will change your ratio quickly with no additional queries on your credit.
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Does this credit increase harm my credit at all, as I know closing a line of credit and lowering the line of credit does?
 
Joshua312 said:
Does this credit increase harm my credit at all, as I know closing a line of credit and lowering the line of credit does?
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no, just call them and request a credit line increase and lower APR. if you've been with them a while and show that you're responsible, it shouldn't be a problem. the worst they can say is no...
 
For 20 years old your credit is already off to a good start, especially considering you have a car loan. Like others have already mentioned, I would not even bother trying to open a new line. And with only a $150 on a $1500 limit, that is nothing to even worry about. Just keep doing what you're doing.



The only thing you have working against you at this point is time. At 20, your credit history is still fairly new.
 
Sounds like your on a good path. One thing they say hurts your credit is to come close to your credit limit (i.e. say you have a 1000 dollar credit limit and your using 900 dollars every month). If your credit company won't increase your credit amount then I would just get another card. If I recall correctly more than one card will not hurt your credit, its when you have a ridiculous amount of cards open when they start to hurt you. Right now making payments on time is the key.



Another reason for having a "backup" card is for emergencies. I had my credit card # stolen not to long ago. Because of this we shut down the account immediately but I had to wait for my new card to be sent in the mail. I don't have a debit card so if it was not for my other credit card I would have been SOL.



I just turned 23 and have 3 credit cards (I only use one regularly). I have never made a late payment. My credit score is a 765. I also contribute to a RIRA.
 
Civicman86 said:
Another reason for having a "backup" card is for emergencies.
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agreed. i have 3 CC's and use one specifically for on-line purchases, and the other 2 for whatever else (emergencies, impulse buys, lol, etc). the cards i don't have are a AMEX and Discover which i might get and then call it quits as i already have a mastercard and visa's...





themightytimmah said:
Just get them to increase it. I'm 21 and I got a $7,500 limit on my visa, by requesting an increase every other month or so since ive had it.
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it's funny, when i hadn't use my CC's in a while, they increased my credit limit which i didn't even ask for, lol...
 
2 credit cards would be ideal. Just in case. And, like others have said, ask for credit limit increases and make sure your cards have no annual fees. If they dont increase your limit or won't waive the annual fees, just tell them to cancel the card and that you're going to get another card. Most times, they'll do it.
 
toyotaguy said:
have a VISA and an AMEX...that way you are covered no matter where you go
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Be careful with an AMEX. Becasue there is no limit, you're always reported at 100% usage. Ask how I know. :) I only had that and a debit card and it was lowering my score, so I added 4 cards in the last year (about $50,000 worth of credit) so my $1200 / mo. AMEX bill only shows up as a small percentage.
 
Well I figure I should add this new info to this thread...little did I know my credit score had changed since 2 months ago when I last checked it...I am now down to 680 :nervous: probably because as of late I had to carry a higher balance than usual. I have now signed up for monthly monitoring at MyFico.com so I can keep tabs on it, and will be alerted once I reach 715 so I am back to normal. I plan on calling tomorrow to have my limit increased to hopefully increase my score eventually. I highly suggest MyFico.com it allows you to simulate situations to see what actions will do for your credit score.



It said what was hurting me:



1. My oldest account was only opened two years ago (Short credit history)



2. High revolving credit usage (Credit to debt ratio 31% - which equates to about $450 balance)



3. 6 open accounts with balances (College loans)



What was good:



1. No missed payments on open accounts



2. Shown recent use of credit cards



3. Minimal credit inquiries



My next goal is to up my RIRA investing, lower dumb spending, and start saving to pay off my student loans :(
 
Man, and to think I was all proud of my FICO score bein 750 being 21... lol Guess that isn't that amazing for my age... of course I have a home loan, two car loans and a bunch of credit cards with no balances. LOL



Oh BTW nice job pullin up a thread almost 2 years old! LOL Not a bad first post. LOL
 
My credit dipped below 500 for a period of time. It was hilariously sad, instead of PreApproved credit card offers I got PreApproved for pre-paid debit cards. In about 2 years I'm up to about a 700 or so.
 
Polished&Waxed said:
wow, you mentioned dave ramsey and you want a credit card increase?



I just payed off $3000 in cc debt. Then I cancelled the cards. If you dont have the cash you shouldnt buy it.



Veruca Salt represents the debt crowd.



YouTube - Veruca Salt - I Want It Now (Willy Wonka and the Chocolate Factory)
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Amen to that P&W, amen. We're the cause of our financial despair and the only way to fix it is to either go further into debt or just say no to that bigger TV that you don't need and "suffer" for a while until things go back to normal.
 
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