Thread: Building Credit History - How many credit cards should I have? Currently I have 2

My credit report clean up is winding down and my credit building efforts are taking over in its place. Last week I closed 2 Orchard Bank cards as they had high annual fees, and kept my 2 Capital One cards with lower AF's. I've set up those cards to be billed automatically each month, in amounts between 1-10% of their respective CL's, and they are both on autopay in full through my bill pay system.

Do I need another card? I read the Creditnet blogpost about the Capital One Newcomer card with no annual fee and low credit score requirements , and liked the fact I could get a card with no AF even with my low credit score. However, will having a 3rd card set up like the others (auto charge, auto pay in full each month) help build credit history?

I also have a student loan and secured loan to diversify my credit.

Besides not having a mortgage loan your credit profile seems very diverse. I don't think you should apply for another Capital One card. I would wait a while and build up good payment history on the two cards you have now. How long have the Capital One cards been open? What kind of credit limits do you have on the Capital One cards? If they are less then $1000, I would apply for a Citi or BofA credit card with a higher credit limit after you have established more credit history. Capital One generally but not always has lower credit limits. Thanks! Heather with BoostMyScore.NET

I'm kind of in the same boat ( went through bankruptcy) with a diverse credit profile. I have 2 cards with Capital One which are both Mastercards. It's been my experience that Visa credit cards are harder to obtain for people with less than stellar credit. Is this true and with being approved for a Visa credit card, will this give you a higher credit score?..... in addition to keeping an excellent credit history.

Originally Posted by mijd

I'm kind of in the same boat ( went through bankruptcy) with a diverse credit profile. I have 2 cards with Capital One which are both Mastercards. It's been my experience that Visa credit cards are harder to obtain for people with less than stellar credit. Is this true and with being approved for a Visa credit card, will this give you a higher credit score?..... in addition to keeping an excellent credit history.

Getting approved for one credit card over another card doesn't give you a higher credit score. What matters is how you mange the card. Keeping your credit utilization low, always paying on time, and paying your monthly balances in full. That's what will give you higher scores.

@TheGooch - focus on using your 2 existing credit cards for the next 6 months or so to build positive payment history. As soon as your scores boost into the good range, then I would look into getting a no annual fee credit card with a better rewards program.

Good news, my credit union has a rewards card that comes in secured and unsecured forms. I got the secured one with no annual fee and you get points for spending that can be redeemed. No annual fee. I think after a year it converts to unsecured. Another advantage is its secured with money in my savings account with the bank, so I can deposit more money to increase my limit if I want to.

I think with my 3 cards and my installment loans I can build credit up pretty good over the next 6 months. Eventually I want to lose the fees and move to all unsecured cards with decent CL's.

Originally Posted by TheGooch

Good news, my credit union has a rewards card that comes in secured and unsecured forms. I got the secured one with no annual fee and you get points for spending that can be redeemed. No annual fee. I think after a year it converts to unsecured. Another advantage is its secured with money in my savings account with the bank, so I can deposit more money to increase my limit if I want to.

I think with my 3 cards and my installment loans I can build credit up pretty good over the next 6 months. Eventually I want to lose the fees and move to all unsecured cards with decent CL's.

Nice work. You've got a good mix of credit going for you now. Keep your utilizations low, continue to pay your bills on time and in full, and your credit should definitely keep heading in the right direction.