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In short, I had bad items on my credit report that I found by getting a free copy of the trans-union report on myself. I contacted the numbers to the items on my unpaid/ bad list and after about a month I got another free report from Experian. The newer report validated all my items were settled and I called a credit card (capital one) and they gave me a credit card with a $500 limit. That is barely anything.

I am contemplating if I should open a few more various cards to gain credit-ability. in the hopes of getting my score better in shorter time.

Is this a good idea (to sign up for a few more credit cards) or should I stay the course with the one card?

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    For all that is holy, who gave you that advice !! Don't take what you cannot keep safe. – DumbCoder Apr 18 '13 at 15:34
  • so you say don't open more credit cards? – kacalapy Apr 18 '13 at 19:35
  • its a false dilemma – CQM Apr 19 '13 at 11:31
  • Were the 'unpaid/bad' things item you were not aware of? Were any of them related to credit cards? – DJClayworth May 30 '13 at 16:25
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Why do you need to "get my score better in shorter time"? Are you looking to apply for a home loan or something similar or do you just what to have a higher score up your sleeve?

My thoughts are that by opening so many credit cards you will just end up getting yourself in trouble over the long term. The way it work I believe is to improve your credit score you need to use your cards and pay them off on time. By having so many cards and spending on all of them you may end up being in a bigger mess that reduces your score not increases it. The more cards you have the more disciplined you will need to be.

If I were you I would have one main card and maybe a second backup card with a smaller limit. Use both of these cards responsibly and you will find your credit score increasing over time.

  • my issue is the limit on the cards is so small that on some things i wont be able to even us it. (vacation- airline tickets cost over the 500$ limit.) plus i can pay the cards off with no issues. and yes i want a home loan – kacalapy Apr 19 '13 at 15:02
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    @kacalapy, is the limit low because you have had bad credit rating in the past. If not get new cards with larger limits and close these ones out. If it is because of bad credit rating that you can't get larger limits, then keep using your current cards responsibly until your ratings improve and use cash for now for bigger purchases. Regarding a home loan, if no one will lend to you then you will just have to work on improving your rating and make sure you start saving for a home and prepare yourself a budget and be disciplined in managing your finances. – user9822 Apr 19 '13 at 23:55
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Applying for credit runs "hard pulls" on your account with incrementally lower your credit score for a limited time.

Long story short, no, applying for credit cards will not improve your credit score in any situation.

Yet, having multiple credit cards can make you look more favorable to some lenders, since other lenders have approved you.

The key point being that "credit score" isn't the indicator that lenders always use to determine if they will lend to you, unless it is a low score because then you will always be declined.

So it is important to know what outcome you really want, more credit or higher credit score.

  • my goal is a hither score but the amount also needs to increase. – kacalapy Apr 19 '13 at 15:03
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When you apply for a new credit card you receive a "hard pull" on your credit report which will lower your credit score in the short term.

In the long term, purely credit score perspective, it will help your credit score for two reasons. One, by having more credit cards and therefore a higher total credit limit you will have a lower credit utilization ratio which results in a higher credit score. Second, the number of total accounts affects your credit score and additional accounts help the score. This second reason, total accounts, has less of a role than the credit utilization in your score calculation.

However, it is also important that a higher credit score only assists in helping you apply for new credit (credit cards, auto loans, house loans) and helps you to recieve a lower interested rate on those new lines of credit. Just getting lots of credit cards to run balances on is not a good use of credit.

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The main problem with multiple credit cards, particularly for a person with bad credit is that they are likely to get themselves into debt.

If you want a higher score or more credit applying for more cards would generally be a good idea. The hard pull will take 1-2 points off your score and will be virtually gone from your score in 6 months. Having multiple new accounts will hurt your credit in the short term but several years from now it will improve your score and provide a buffer if you want/need to open a number of accounts in a short period of time.

The key here is that you should only use credit in situations that improve your over all financial situation. If credit saves you money or makes money over the long term then it is a good idea. If credit means that you can buy things you otherwise could not afford it is probably a bad idea and you will likely end up in a similar situation with credit problems.

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