I have a question about rebuilding credit after bankruptcy. My bankruptcy was discharged 6 months ago, I want to rebuild my credit I just received a NMB secured card for $900.00 (secured card, I sent in deposit) Now I got an application from APB Bank for a secured credit card. Question is: Is it better to have one credit card with $1500 limit only one inquiry, one creditor. OR..................... obtain the second card for $600.00 and make ontime payments to both cards. Note: I dont plan to max out cards, only use them to pay regular bills and send payment right away, won't use more than 15% of total credit line. Thanks for your input.
Having a couple accounts after a BK is better for you. You need positive credit. Another good secured card is Orchard Bank. You do not need to be worrying about inquiries right now. In the time period it will matter to you the inquiries will be gone.
It is important to have cards from different companies in case one changes their terms unfavorably. Rates can be raised, accounts closed, or credit limits reduced unilaterally with little notice, leaving you in a jam while traveling, or in a poorer position (lower FICO score) to obtain a new account. In addition, companies can merge, leaving you dealing with only one company where you thought you had two. You generally cannot balance transfer between accounts with the same company, unless their balance transfer offers allow transfer to your checking account. Diversity of credit relationships is your protection against arbitrary changes of terms.
I also think two cards is better. Ontrack gave some great reasons why. If you can find an unsecured card, that is even better. Or maybe a gas or store card as well (in addition to two Visa or MasterCards).
