1 new CC vs 2?

[mark303]

I just got a new Cap 1 Visa card since my discharge. I plan on using it sparingly every month and just paying it off monthly. My question is does your credit score raise any faster if you have two cards vs. just one? What are the benefits for having more than 1 card to rebuild my credit?

Thanks!
~M

[HHM]

Mathematically, if you have two cards, that raises your available balance so you can have a smaller debt to balance ratio.
For example:

1 CC with $2,000
Routinely charge $200
D/B = 10%

2 CC's with total balance of $4,000
Routinely charge $200 ($100 each)
D/B = 5%

The lower the ratio, the better.

However, don't go nuts with this, there is a tipping point where having TOO much available credit becomes risky and is scored accordingly as a negative.

I am not aware if the mere fact of having 2 cards vs 1 is more beneficial.

[backtoschool]

Mathematically, if you have two cards, that raises your available balance so you can have a smaller debt to balance ratio.
For example:

1 CC with $2,000
Routinely charge $200
D/B = 10%

2 CC's with total balance of $4,000
Routinely charge $200 ($100 each)
D/B = 5%

The lower the ratio, the better.

However, don't go nuts with this, there is a tipping point where having TOO much available credit becomes risky and is scored accordingly as a negative.

I am not aware if the mere fact of having 2 cards vs 1 is more beneficial.

In addition to the great explanation you gave above HHM, I was told by my future mortgage broker that fha likes to see 3-4 positive tradelines post bk and a fico score (using a mortgage model) of at least 620. The 3-4 number is 3-4 total positive tradelines (this is a minimum) so that would include a car loan, student loans, etc...

[Logan]

To improve your credit score I would recommend 3 trade lines.

Logan