Should I apply for 2 secured credit cards? I am just building my credit history and I am wondering if it would make any difference if I apply to 1 or 2.
6 Comments Already
April 5th, 2010 @8:59 pm
If you’re willing to pay twice the fees and two security deposits it might build your credit faster. But why not just put a larger deposit on one card– and only pay the annual (and other) fees once???
I’d probably go for one card…
April 5th, 2010 @9:25 pm
Start out with one card.
April 5th, 2010 @10:19 pm
It really doesn’t matter how may card you will have. Building good credit starts and ends with good and on time paying history. No delays, no defaults. With good history, credit card companies will send you all available ones. But don’t get hooked on them. They are good on ruining credit history also as most of their customer service personnel are overseas and can’t really do much when it comes to settling disputes.
April 5th, 2010 @10:56 pm
While one might be all that you need, there’s certainly nothing wrong with having 2. Keep in mind though, that you’ll have to have security deposits for both cards and 2 annual fees as well. But also you can work this to your advantage if you add to both deposits periodically to increase the limits on both. Now this money is only temporarily tied up in these savings accounts which gain interest for you, by the way. As long as you don’t max either of them out and make your payments on time, usually after a year they’ll both covert to unsecured cards or you’ll get an offer for a better card and you’ll get your deposit back. You can think of it like you’re building credit with 2 savings accounts. If you do go through with it, don’t apply for any more major credit cards. 2 will be enough, and if you add to it regularly, you can get the credit lines that you’re happy with. I posted links to some good secured cards that should help
Good luck!
April 5th, 2010 @11:00 pm
Your credit score is based on how much credit you have and how much credit you use. If you take out one secured card and keep the balance around 50% of the credit line your credit score will improve. Maxing out your card is what hurts your score.
Multiple cards, especially secured cards, can create problems. They are usually high in fees, and they don’t always make it easy to pay them automatically. Even Orchard Bank, the credit card we recommend at FiscalSanity.com, has a complicated automatic payment setup. Remember, if you pay them late, your credit report will be negatively effected.
Another way to build credit is with a personal loan. How can a personal loan help my credit, you may ask? Well, if you friends or family hand you $1,000 and you hand them an IOU, then it won’t.
But if your friends or family loan you money through Prosper, then you WILL build credit.
Prosper.com is a marketplace for credit that enables people to lend money to other people in a safe, efficient manner. You create an account with Prosper, type in how much you want to borrow, and then have people bid on loaning you money. You can even invite your friends and family to bid on your loan.
don’t get sucked into the credit trap. all you need is one card and the longer you have it the more credit cards will be sent to you unsolicited. credit card companies make thier money on fees and they hope you screw up. especially with a secured card.