Second card

[TTxngal]

Quick question...

Just a few weeks out and hoping to rebuild. Applied for and received an unsecured card from Cap One. Wanting to obtain a second card, but hate to pay annual fees. Since I'm still receiving offers from Cap One, would it be a bad idea to apply for a second card with them? Is there some reason I should seek out a second company?

Thanks!

[Kuya]

Many banks allow multiple cards. I don't think the Bank Name has any effect on your credit report, but maybe I am wrong . . .

What is more important is types of cards. You want to begin working towards a well rounded supply of credit to help rebuild. Two Credit Cards, a store credit card or two, a secured loan from your local bank or credit union (or unsecured if you qualify), a car loan, mortgage.

Obviously, coming out of BK we can't have all of that at once, but this is one of many factors that can help boost your credit . . . having well rounded credit sources.

Also, think twice about cards that are known to be very low credit limits . . . like Orchard Bank, etc. low limits can certainly help boost your credit when it is in the dumps . . . but very quickly as your credit starts to grow, these lines will hold your scores back. . . and then later you get a 1 -2 punch when you want to close it out, because it is one of your oldest accounts in good standing.

Good luck!

[Logan]

Also, think twice about cards that are known to be very low credit limits . . . like Orchard Bank, etc. low limits can certainly help boost your credit when it is in the dumps . . . but very quickly as your credit starts to grow, these lines will hold your scores back. . . and then later you get a 1 -2 punch when you want to close it out, because it is one of your oldest accounts in good standing.

Good luck!

I agree with the low credit lines doing harm in the long run but many here say that isn't the case. The articles I've read have been inconsistent on this subject.
Also, why do people keep suggesting or getting personal loans and paying banks interest? Everyone should have a plan but paying interest should not be part of the plan.

Logan