hplss.rmntc asked:
I am a recent college grad, I’ve had one credit card which I’ve been pretty good with for the past 3 years. I am thinking about getting an American Eagle credit card, but I’m not sure how/if it will affect my credit score.
I am a recent college grad, I’ve had one credit card which I’ve been pretty good with for the past 3 years. I am thinking about getting an American Eagle credit card, but I’m not sure how/if it will affect my credit score.
Does having more credit cards improve your credit score? To what point (how many is too many)?
How will my credit score be affected if I have a credit card but rarely use it?
THURMAN
ELISEO
If you pay them on time, and do not go into arrears, they help you to retain a good credit rating, and score.
Even if you do not use a card a lot, keep it paid up and it is to your advantage.
Comment by GUY — January 27, 2010 @ 2:17 pm
LESLIE
credit cards will continue to build your credit until you stop paying them promptly on time.
As long as each month you pay it off, and you never get charged interest, you can only build and build and build.
Comment by MARCELINO — January 30, 2010 @ 4:04 am
RONNIE
Well, you shouldnt have more than three credit card accounts open at one time. I would say use the credit card every now and then for a small purchase and pay the credit card bill shortly thereafter. This will boost your credit score.
Comment by MICHEL — January 31, 2010 @ 1:18 pm
BRET
They are the easiest way to both, help and hurt your credit score.
If used wisely, credit cards can help build credit line and score in the post college years. And help you set the credit foundation to a get mortgage and car loans down the road. But the problem is that we have many lazy ” woe is me” types of people out there. Who love to rack up debt, not pay it off, and then blame someone else. If you do that you will ruin your credit for many years.
So bottom is line is that credit cards have a huge impact on your credit score. So be sure to use them wisely.
Comment by ARTHUR — February 1, 2010 @ 3:55 pm
DARREN
It helps maximize your credit score when you have several positive trade lines (accounts reporting to the bureau) open, with low balalces, high limits, no late pays, and several years history. So it will help your credit to have accounts as long as you don’t roll up balances or miss payments. The weight different types accounts carry in determining your score are: 1) Mortgage 2) Auto loan 3) Installment loans 4) Revolving credit accounts. I would keep the revolving accounts limited to about 4.
Comment by SCOT — February 1, 2010 @ 5:59 pm
ISRAEL
As long as you make regular repayments it shouldn’t affect your credit rating.
Comment by TRUMAN — February 5, 2010 @ 1:11 am
NATHAN
You don’t need a credit card! They are nothing but trouble. The credit card companies charge an arm and a leg for interest and chances are you’ll rack up the late fees, high interest and hidden fees. They aren’t worth it! They will WRECK your credit score because of this. IF YOU DON’T HAVE CASH TO BUY WHAT YOU WANT THEN YOU DON’T NEED IT! Take my advice. I am in my late 30′s and this was a hard lesson to learn. If you want to improve your credit score then I suggest going to your local bank, applying for a loan (you should be able to get one provided your credit is decent) DO NOT USE THE MONEY THAT YOU BORROW! Put it in a savings account …which draws interest…and pay it back on time every month. Don’t pay it off too early though. You are trying to establish a good payment history. Please don’t spend this money. It is strictly to strengthen your credit. It’s a much better idea than a credit card. Also, if you just want to carry plastic then get one of those loadable cards where you can put money on it and use it like a credit / debit card. Good luck!
Comment by DARIN — February 7, 2010 @ 9:33 am
LINDSEY
The amount of credit cards you have does not affect your credit that much. It is the amount of credit you have on those cards, and how much of that credit you are using. If you have all of your credit cards maxed out or very close to the limit, that looks bad on a credit report (not awful, mind you, but not great). If you have credit cards that you rarely use, that looks good on your credit. Also, if you apply for more than one or two cards all at onece, it brings your credit score down some. This includes car loans and leases, and mortgages and loans of other sorts. So don’t apply for too much, or it will hurt you. One or two things at a time won’t hurt you though. The one card that you have been paying well on is good though. It probably won’t count towards much since you don’t have any major loans or cards in your name, so if you try for anything big, they will tell you that you don’t have much credit history, but that is not bad, just letting you know. I would personally advise you not to get any more credit cards unless you are not going to use them, since it can get you into big time trouble with debt.
Comment by CHANCE — February 8, 2010 @ 4:41 am
MICHAEL
Another thing that can actually hurt you more with a credit card is if you use more then half of the balance. What I mean by that is, if your max spending balance for the card is $1000.00 and you’ve used $600.00 it looks worse on your credit. If you have a credit card make sure whatever charges you make with it pay it off every month. Don’t get more credit cards then you can handle.
Comment by NICHOLAS — February 9, 2010 @ 7:48 am
BEN
They can help you, but they can also hurt you; the more credit card, car loan,etc,etc debt you have; even though you pay on time…. and sometimes more than the minimum (you should) it will lower your credit score and make more of a risk for lenders….
Comment by STERLING — February 11, 2010 @ 7:48 am