Best Buy credit card?

Question

I am about to apply for a credit card. I have a best buy credit card and my question is that if I paid it off right now.. Would it increase my chances of getting a higher limit with other credit cards.. How long would it take to improve my credit if I paid it off today.

Answer 1

Best buy is a store card that will be reported to the credit bureau as revolving credit. Regardless of whether or not you pay it off right away or not, you need to establish payment history which takes several months (min. 6) to establish.

You may get an adverse affect with other card companies because they'll see that you already have more credit with Best Buy and become reluctant to extend more to you.

Don't apply for credit too quickly. Space it out for a year or more...ideally 2 years.

Answer 2

The paid off car loan is probably doing you more good than the Best Buy card is right now.  It sounds as if this is just the regular BB Credit Card(can only be used at Best Buy) and not a major credit card.  If so it does not have as much weight as a major one would on your credit report.  But you still need to keep the balance low.

In terms of your credit ideally you never want to have a balance of more than 30% of your total credit limit.  The higher above that you go the more negative effect it has.  You are currently right around 60%.  If you can get it under 30% that would help, but remember it can take up to 30 days for your new balance to be reflected on your credit report.

Answer 3

Yes it would help.

Remember the lenders look at ratios.

Maximum credit available and how much you are using of it.

So if the BB is the only credit card you have then if you have 2000 on it out of 2200 then your revolving credit ratio is high and chances of getting  a good credit card with high credit are lower.

Now if you pay it off or at least bring the ratio below 50% thats reflects greatly on your history.

so 1100 or lower is great.

Normally the banks report every month. So if you pay your BB card on say 5 th august , they will report by september start or aug end . So leave a months gap , best way is to check you credit history/score after a month or so.

You mentioend you paid off a car  loan which is great for your credit history.

Regards

Answer 4

Credit takes time to establish. You say you've had a best buy credit card for how long? the longer you've had a credit card and the longer you've been making payments on time with it, the better your credit score will be. Also, the best way to get high credit scores is spend big, buy a car and pay it off, take out a loan, pay it off ON TIME. But if you don't have that kind of money don't get yourself in debt and just take baby steps with the credit cards.