I got my first credit card with a $2,000 limit a year ago. I pay the bill in full monthly. I heard you can build your credit even faster by using 2 CCs. Is this correct? Should I open another card and pay for half of my shit with that one?
By that reasoning, isn't 3 even better?..
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you're dead wrong. the more lines of credit, the worst your score will be. you're thinking of increasing your utilization ratio (current balances/available credit) by adding more cards, all you should do is ask for a line increase on your current card. I personally think there's nothing wrong with 2 cards (1 Visa/MC, 1 amex/discover), or even 3 (company card, personal card, other personal card/store card), but the way to build credit is to do what you're doing (paying bill on time) and by having a low utilization ratio.
I'd be shocked if they give it to you every 3 months, I ask annually on mine but you can try. if they deny you I'd wait 6 months. also if your current card has no rewards, no problem on switching to a carrier with rewards, just don't go hogwild and get 6 credit cards so you can have a higher overall limit. I got the amex blue when I was in college, their customer service is so much better than any bank. no experience with Capital One/chase, but I've heard good things.
That is incorrect. Utilization, which counts for 30% of your FICO score, is determined by the balance on the card(s) against your total credit limit. So if you have one card with a $5000 limit and you owe $2500, that is a 50% utilization ratio. If you had two card with a total of $10,000 credit limit, that would be a 25% ratio. You can ask for an increase on your credit line for one card, but its optimal to have 2 or 3 cards for FICO scoring purposes and to have a back up.
I'd look into Amex cards in general. They seem to come with ridiculously high limits and they don't seem to have any problem raising them annually. I got a card way back during my sophomore year of college (one of their free credit cards, not a charge card) and I was instantly approved for a $15k credit limit that they've bumped up $2-$2.5k every year without my even asking.
Prime example of what the crash looked like.
Started with a Discover card, built credit for a little while, but didn't like the low limit (even after a raise) and the annoyance of people saying they don't accept it. Got a Visa recently with double the limit and have had no issues. Also have a company card and debit card with a credit union. Always good to have a backup in case one gets lost/stolen and I always carry $20-$40 just in case.
Definitely have at least 3 credit cards: it will keep your utilization rate lower (larger number of cards means more total available credit), and it makes you appear more creditworthy (if two others have already approved you then you're more likely to be approved for a 3rd, and so on). Never close your 1st card opened as average age of credit line is a factor that goes into credit scores. Keep paying off in full and you'll never have an issue. I just finished college and have a +750 score with 4 cards (3 I don't use often now that I actually have a grown-up card with decent rewards.)
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