Credit Card strategy to build a bit of credit?

[SubaruSTiMike]

Hey guys, I've been thinking about getting another credit card to help with my credit building. I currently have a student credit card, but may have been upgraded, I'm not sure. It's with my bank, Bank of America. The limit is in the low 1000's, and I am thinking about getting a 2nd credit card to help with my credit. Does anyone have a suggestion on a good credit card that companies will actually approve? I also read that having low balance with a high limit card helps with credit calculations? If thats the case, I'd definitely want another card just so I can have that low balance. Any good cards with low APR and good rewards like cash back maybe? I looked into the Chase cards but their limit is super low. Thanks for any help or advice.

Also I read that having more htan 2 cards won't help all that much, but atleast 2 is good?

[investormcgee]

The best way to build credit with a card is to use it monthly and pay the full statement monthly. After seven years it will have a positive influence on your credit.

Getting another card won't help at first, new card applications are frowned upon in fear of just searching for ways of getting a higher limit than blowing it. But after awhile this will be removed and will move back to neutral than to positive.

Also don't overestimate the power that the cards have on your credit score. They won't make you but they can break you. The best way to beef up the score is thru auto loans or the best bet of mortgages. But you got to start somewhere and cards are the way to go. Just don't worry about it too much.

[captZEEbo]

i've heard it's recommended to have between 2-6 major credit cards and 0 store credit cards.

[Dazarath]

Make sure the credit card has no annual fee. There is no need to use it every month, but be sure to always pay it off on time. Actually, there'd be no need to use it at all, other than the fact that sometimes the company will close your account after a long period of inactivity. As for rewards cards, there are no amazing cash back cards available anymore (to my knowledge), but the Citi Dividend one is ok (not great though).

[Ray Zee]

0ne credit card is plenty. you need to build up your net worth and not try to find ways to get more in debt. credit cards just do that and provide no real help for anything except for borrowing more for consumer goods.
the key to getting ahead is to get money that is yours not borrow more. good luck.

[BradleyT]

[ QUOTE ]
0ne credit card is plenty. you need to build up your net worth and not try to find ways to get more in debt. credit cards just do that and provide no real help for anything except for borrowing more for consumer goods.
the key to getting ahead is to get money that is yours not borrow more. good luck.

[/ QUOTE ]

Do you think the people that have built up credit (most likely through credit cards) enabling them to borrow millions on a home at very low interest rates like 4% (a few years back) aren't getting ahead?

[kahntrutahn]

I suggest going to fatwallet dot com and checking out their finance forum. They have the most detailed, "work the system", credit card information I've ever seen.

[Cubswin]

RZ

Your thought process on credit cards is a bit dated. Credit cards are a great asset if you know how to use them properly. There are, of course, people who can not use them properly and I thank them for providing revenue to the credit card companies so that they can offer me nice rewards. I currently have almost 150k airline miles banked from credit cards and have spent another 100k miles on free flights, all at no fee to me. The value of all the miles i've earned is well over 5k so credit cards have helped me build up my net worth.

There are so many other benefits of credit cards and savvy people can take advanatge of them. 0% balanace transfer arbitrage, 30 days of free float and the consumer protections offered by credit card companies are just some of the additional benefits for those that know how to work the system.

[Ray Zee]

sorry bradley but you get to borrow millions on your income and net worth not what you did on credit cards. thats not where to put your energy.
you can increase your borrowing power a little by establishing a credit history but it will not get you far.

[Ray Zee]

sure cubswin you are right. wrong about me being dated though. one card with cash back can save you some money. but not the place to put your working energy. to get those perks you have to spend 20 to 100 times that amount on consumer goods.
some perks can accrue from business expenses but i am not addressing that as we were talking about raising your credit through cards.
and sure you get other benefits. i am not saying not to use a card but what to use it for. overall though they do little in the way of increasing your wealth other than saving some money and getting protection on purchases.