New CC and higher scores?

[rodeogal]

I am here everyday reading and learning and I thank everyone on this board for that. I notice that many of you list "new" credit cards on your siggy line. Now, here is my question...after I get a couple more things cleaned up do I try to get new CC accounts? Does this help my scores?

I have a car loan, 1 yr old, current/never late

[LeslieR]

Congrats on all your hard work and for absorbing all this great info!!

As you clean up your report (removing derogatory items), you will want to build a nice mix of credit that you will then manage responsibly. Part of your credit score is based on available credit and the types of credit you have. In addition to your installment loan, you will want at least one major credit card and perhaps a department store or gas card. You will want to use these cards and pay them off or down to nearly nothing. The point is, use your new credit responsibly so that you don't get yourself into the same mess you came here with!

So the answer to your question is, yes, after credit repair comes credit rebuilding. Adding a mix of credit that you then use responsibly, paying ON TIME EVERY MONTH, will enhance your score substantially. Think of it this way: to even have a credit score, you must have credit. Some people don't care about this and have a goal of "no credit". But, realistically, if you have goals like cars and homes which will require financing, you need to illustrate a history of responsible credit history. Right now you are working to erase your old bad habits and then you will work on rebuilding a history you can be proud of.

You will see some score dips and fluctuations when you first start getting new credit, but as the accounts age, your scores will even out and be much improved.

Many discussions on these boards about which cards to start with depending on your circumstances. www.whogavemecredit.com and www.financeglobe.com are good resources, as well.

Good luck!