Nikita asked:
I am trying to rebuild my credit after ID theft, a couple of problems that were mine and years of basically not having any credit reported. (I primarily use my debit card and pay cash for everything). I make good money now and am trying to rebuild in order to purchase a condo in the next couple of years. My good accounts (rental, club, cable, cell, etc.) have not reported my good credit. So how many cards should I take out that will help boost my credit score but not hinder my credit. Thank you!
#1 by bstonge on February 8, 2010 - 7:45 am
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You only need one to do that. Don;t let anyone sucker you into debt.
#2 by Amanda H on February 9, 2010 - 2:07 am
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An absolute maximum of 3. You dont want too many new ones all at once becuase that hurts too.
Start with 2, keep the balances below 30%, and pay on time each month. Dispute any old/bad information that you want off and see what gets removed– even real debts that are yours. Pay any old collections/delinquincies.
Dont get any more inquiries except for the two cards!
#3 by Roger N on February 11, 2010 - 7:59 am
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Only+one%21%21+and+just+keep+up+with+the+payments.
#4 by foxhound on February 12, 2010 - 11:38 am
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You can request your good credit to be reported as usually the utilities won’t report unless you have an issue.
Get two cards and use them! Pay off immediatly and let them up your available balance as you go. The debt to asset ratio does not apply to you. Again two cards (say Visa and Amex) and you will be fine. It will take time but after a while your credit score will start jumping up.
#5 by polished on February 12, 2010 - 1:31 pm
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hi …here’s a resource to help you with your credit needs and everything you need to know about credit building, all the best
#6 by STEVEN F on February 13, 2010 - 9:36 pm
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You don’t need ANY. Find a mortgage lender that still does ‘Manual Underwriting’. That’s what they call the process lenders used before FICO came along. They look at your income and debts (if you had any, you wouldn’t have asked this) and actually DECIDE if you are credit worthy. Anyone doing manual underwriting WILL consider your cable, cell, phone, etc. You may have to sign a release allowing them to check with the cable company, etc., but if you have a good payment history, that’s not a problem.
#7 by Smoovy Loco on February 15, 2010 - 9:31 am
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I would take out no more than 2. I would start out with a secured card. Granted you would have to put a deposit upfront to secure a line of credit, but the deposit would also garner interest while you’re proving your creditworthiness. You could start out small, like $200-300 or larger like $1000-2000. Either way, I strongly suggest you to continue to use your debit card and pay cash like you’ve been doing, and make small purchases that you can pay off in full every month (around $20-50). I would only use the credit card in dire emergencies. After the secured card becomes unsecured, then you could receive offers for other cards, but chances are just the one card could work just as well. Be sure to dispute anything that was involved in the identity theft and make sure that you have a POLICE REPORT. Your “good accounts” (rental, club, cable, cell, etc.) CAN be reported through this reporting agency called PRBC. (http://prbc.com/default.php?) This is for REAL. You can have your good credit reported and complied in a scored report that can be considered with your traditional credit reports. It’s become increasingly popular and I’m certain that it will help you out immensely.
#8 by sun s on February 18, 2010 - 12:43 pm
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%22One+is+enough.+Go+for+a+rewards+Credit+Card%3A%0A%0A%0AReward+credit+cards+reward+you+when+you+spend+on+the+credit+card.+Normally%2C+you+can+collect+rewards+through+3+ways.%0A%0A++++%2A+It+involves+earning+cash+back+on+the+card%2C+it+depends+on+the+amount+you+spend.%0A++++%2A+Next+one+involves+giving+points+to+the+customers.+They+can+be+redeemed+for+gifts+like+cosmetics%2C+shoes%2C+water+heater%2C+mobiles+and+other+goodies+which+the+credit+card+company+offers.%0A++++%2A+The+last+method+of+reward+is+providing+airmiles.+Airmiles+are+highly+popular+reward%2C+as+many+customers+like+to+redeem+them+for+free+flights+or+flight+upgrades.+Whatever+type+of+reward+credit+card+you+opt+for%2C+carefully+note+the+amount+or+rate+at+which+rewards+will+accrue+and+also+read+carefully+other+terms+and+conditions.%22