Is it true that you get bad credit if you have numerous credit cards?
I would like to get good credit b/c I’d like to buy a car next year with a down payment. But I heard by applying for a lot of credit cards you get bad credit. What would be the best way for me to build credit safely and effectively enough for me to be able to get a good credit interest for a car?
Also, would i need to get a lot of credit cards? i hear by applying for a lot, and showing a lot of transactions, you recieve good credit?
Tags: Cards, Credit, numerous, True
I actually went through this. If you apply for too much credit then it just seems like you’re desperate. I know because I applied for a lot of credit cards and got turned down. Now that stuff is on my credit report for 7 years. Don’t do it. Just apply for a couple, but first make sure you have a decent rating. Otherwise you’re gonna have a hard time getting accepted and would be turned down.
Each card you apply for lowers the score 7-11 points. Have 3, THREE, good trade accounts, never run them to the limits but keep the balance below 30% of the available credit on all of them, and pay them off when the bill comes in.
That builds your credit.
Inquiries by credit card companies stays on your record for TWO years, the credit history stays MANY years if it is good and 7.5 if it is bad.
You do not need 20 or 30 charge accounts, each has a limit on it and potential from a creditors point of view that could at any given time be your total debt if you ran them all up.
Bad credit is one of the worst problems to have… however there exists a solution. I will hereby talk from my personal experience. I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details, if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times,
I suggest you get as much information as possible online on this first, a good place to start in my humble opinion is astraight to the point ebook with question and answer I found : http://www.counselingcreditcarddebt.com
Having a lot of credit cards isn’t going to give you good credit. You only need one. Then build the habit of paying off debt early and on time. Maybe charge your gas on your credit card and pay it in full each month. That shows you can handle money responsibly.
Always remember it’s YOUR bottom line you want to watch out for. Your bottom line is not having to pay interest (finance charges).
You’d be better served to start saving as much as possible out of each paycheck to go towards a down payment on your car than worrying about getting a bunch of credit cards and charging on them.