# of Credit Cards and Credit Score

[CHH1023]

so I've done a lot of readings online about how to improve credit score (I'm at "good" right now). I currently have 1 credit card right now and I was thinking about to get another credit card by the end of this year.

I spend around 15~25 % of my credit limit on my card every month, and I would like to split it into 7~12% on both cards if I end up getting a second card.

I was wondering if that will improve my credit score because it will increase my overall credit limit and lower my % use on each card?

What I usually do is once I reach around 15~25% of my credit card limit, I put away my credit card and use my debt card until the next billing cycle and I've been doing this for over a year. I know it doesn't help me build any credit when I use my debt card.

Or, should I just submit a request to increase my credit balance for my first credit card?

[dczech09]

Getting an additional credit card that is from a totally different company is a good idea. This will not only increase your available credit, but it will give you another credit resource.

Think of it this way: a second credit card will give you another credit reference just like a second job would give you a second professional reference. You certainly do not want more than this, but this number of cards is essentially the sweet spot if managed properly.

You say that you spend roughly 15% to 25% of your income on your credit card each month. So for every $1,000 in income, that is $150 to $250. If you get a second credit card and spend the same amount of money, the proportion of your total available credit that you would use each month will go down (depending on how much credit you have available on the second).

A good rule of thumb is that you never want more than 30% of your available credit to be used; this will bring down your credit score.

I say go for it, just never carry a balance forward to the next month.

[snafu]

If you are seeking a 2nd CC, I suggest you examine benefits from various loyalty cards. Some of us choose a card that gives travel points because we travel a lot or wish to travel. Others choose money back benefit or other benefits.

Most important is the acquired discipline of paying balance by due date. I once believed charging disposables like restaurant tabs or gas purchases was dangerous but I notice most gas purchases now require CC.

[CHH1023]

Originally Posted by snafu

If you are seeking a 2nd CC, I suggest you examine benefits from various loyalty cards. Some of us choose a card that gives travel points because we travel a lot or wish to travel. Others choose money back benefit or other benefits.

Most important is the acquired discipline of paying balance by due date. I once believed charging disposables like restaurant tabs or gas purchases was dangerous but I notice most gas purchases now require CC.

the one I have right now is a boa student card and it doesn't give any rewards, no cash back nor points...

I was thinking about get a Walmart Discover Card.

Walmart Credit Card Review | CreditShout

[JoshuaHeckathorn]

Get a second card and keep your credit utilization under 10%. Since you already have a good credit score, you should be able to qualify for a cash back credit card so you can enjoy some of the benefits of using credit cards to make purchases. Of course, you should continue to only buy what you plan to pay off in full and on time each month.

You may want to check out the Citi Forward card or the Discover Student Clear, which are both great rewards card for students.

[cypher1]

I was in a similar situation for options.

New CC recommendations

I ended up getting an AMX Blue card for rewards on purchases. Just depends on what or where you'll be mainly using the card at.

[randomlooseends]

I'm in a similar situation. I never had more than a debit card through college (which made it interesting to try and get a car loan when I graduated). A year and a half later, my credit score comes in right at average, probably similar to your "good" rating. Besides the car loan, I had one source of revolving credit temporarily set up by the credit union to try and help me build credit, and one credit card.

I've kept a low balance on the credit card, and paid in full every month, but the $500 credit limit kills me. The plan is to ask if they will raise the limit on my credit card, and then wait until it's been a full 2 years since I applied for the card (so the credit request rolls off of my credit report). Then I'll apply for a rewards card.

The problem is, I'm really not sure whether asking the CC company to increase my credit limit will result in a hit on my credit report?

[snshijuptr]

There will be a temporary small hit in your credit score. I believe inquiries go away after a year. You will also get a boost to your score if you are approved. You really are only hurt by an inquiry if 1) you inquire but are rejected and give up or 2) you inquiry but then you decide to not take the credit.

[fe2o3ez]

I agree with most of the things that others are saying. Get the second card, make sure it is from a different source, etc. However, I am a little unsure that you would want to try to split expenses across the 2 cards. Certainly you might want to throw something on the card every couple months so that there is some history to report, but I wouldnt worry about getting a split between the cards each month.

1. Debt ratio is based on total debt outstanding vs. total available credit, so keeping total expenses the same and increasing available credit will help your ratio, regardless of which card you use for the expenses.
2. You may have better incentives from one card or the other, and there is no reason not to take advantage of them, if you are able to pay off your cc each month.
3. Multiple cards opens you up ro losing track of your total expenditures too easily. Think of it this way -- let's say you live in a 1200 sq ft house for a few years. Then you move to a 2400 sq ft house. What is your natural tendency with all that space? Find stuff to fill it. A little extra here, a little extra there isnt a big deal. Pretty soon you have worked your way back up to 12-15% on EACH card rather than on one. Keeping it on one - from a spending perspective - forces you to see the rising total balance and liability.

My advice, FWIW, is to get the second card and only use it for an occasional expense, every few months, and keep it locked in a drawer the rest of the time.

Good luck!

[naomibatac]

If you are comfortable using your present card and is responsible in maintaining the same, it is sufficient to have a good credit score.