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Buiding Credit - should credit cards be from different issuers?


TheGooch
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Right now I just have 2 cards from Capital One, and am charging them 1-10% of the limit each month and paying the bill in full in order to build payment history.

However, I think I read someplace that for some reason it's better to have cards from different issuers. Has anyone else heard of this? If so, what is the benefit?

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According to myfico.com they recommend 3-4 revolving credit lines from major credit cards like Mastercard, visa, american express, discover etc.. I don't believe them being from different companies matter as they should probably both show seperately on your credit reports.

You are being smart in keeping your debt to credit ratio low as that makes up 30% of your fico score.

You may consider picking up a visa card though if you can get one. Orchard does Visa (fyi).

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According to myfico.com they recommend 3-4 revolving credit lines from major credit cards like Mastercard, visa, american express, discover etc.. I don't believe them being from different companies matter as they should probably both show seperately on your credit reports.

You are being smart in keeping your debt to credit ratio low as that makes up 30% of your fico score.

You may consider picking up a visa card though if you can get one. Orchard does Visa (fyi).

Thanks. Unfortunately I recently closed my Orchard cards because of their bad annual fee/credit limit ratio. In retrospect, asking them to merge the cards would have been a better tactic.

I did some more thinking and here is my plan:

  • Ask Capital One to merge my Mastercard and Visa cards into one card with sum of their limits and age of the oldest card.
  • Get the secured Citibank Card for $250 investment
  • Wait 2 months until my score goes up and get a Discover/Amex card(if possible)

Combining cards will reduce my annual fees and keep my age/available credit limit.

The Citibank card has a good record for granting CL increases, and converts to an unsecured card after 18 months. It has a low APR but does have an AF. After having Capital One and Orchard cards for 6 years with no CL increases has pretty gotten old. The Citi will be a breath of fresh air for me, haha.

Also, isn't it true that Capital One is subprime and Citi is a prime lender? If so, then the other benefit would be having a card from a prime lender.

willingtocope - I'll search for that. My credit score is still pretty low, though I've taken actions that will increase it a lot in the next 30-60 days(mostly companies agreeing to remove items and I'm waiting for the credit bureaus to update my reports ).

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