I'm new to credit, and I was wondering...

Question

...how exactly I should go about bringing myself up from absolutely no credit to excellent credit. I turned 18 in June, and I applied for various credit cards, only two of which I actually plan on using ever. Now I know this is probably bad, but I have about 9 different credit cards... Lol... But I have in NO way ever (nor will I ever) used them (well except for one or two if I need to). Heh, I applied for so many cards because I wanted the promotional benefit associated with applying for the card...

What I plan to do every month in order to build credit is to make a very small purchase and pay it in full.

Should I cancel the rest of the credit cards that I will never use?

Is it really that bad that I had so many credit cards in the first place?

These questions have really been bothering me lately, and I'd like to know your thoughts. =)

Thanks =)

Answer 1

Having that many cards is ridiculous, cancel them and stick with one! Choose the one with the lowest interest rate and preferably no annual fee.

Another reason that it's a bad idea to have that many credit cards is the fact that identity theft is at an all-time high - the more cards you have, the more likely it'll be for someone to be able to jack your number and max out your cards.

The best way to get good/excellent credit is to make purchases on it and be sure you're paying them off within the month. You'll want to do this anyway for the fact that credit cards have notoriously high interest rates - if you can't pay your bill on time then you'll owe a lot more than you ought to!

Answer 2

Credit companies do not give you good points for paying in full monthly. You build better points when you keep a small revloving amount each month. Yes, it is bad that you have so many cards. Return the cards (after you have cut in half) to the companies that are charging the most interest rate.

Answer 3

Yes, if you have too many credit cards, you're at a higher risk cuz you have the potential to get into deeper debt than if you only had 2 or 3 cards.  The guy above is correct.  You get better credit scores when you make full payment in 2 monthly installments than paying in full.....but it's still a credit score if you do pay it off in full.  I'd cut all of your credit cards but ONE and make sure that you close the accounts.  Having more than one card will only tempt you to max them out if and when you get desperate.  

Answer 4

in direct relation to your question taking your personal spending and habits of the future out of the equation....based on your situation:

nine cards is too many...and will affect you negatively regardless if you use all or none of them...consider the benefits of the best ones (one for interest, one for rewards of cash, rewards of points/travel, one cause you want that one ect)...I would suggest keeping approximately 2-5 open...that number is really your choice, BUT make sure the very first card that was opened...the very first one that was approved and showing on your credit report remains open that is establishing your "credit history"...creating a longer period. future advice, don't apply due to a promo....get it cause it's a good card and good for you, cause that just hindered your already fragile score...but due to the newness...it can be easily repaired.

technically revolving is better....if you have a card that is zero interest..leave a dollar on it, but if there is any sense of worry or forgetfulness it doesn't affect it that much, so paying in full still is a very good way to build your score.

hope this helps answer your question...ps if those promo cards included store cards...have those be the first to go if you can stand to close them. good luck!

Answer 5

It isn't a  good idea to have 9 credit cards. Keep two and return the rest. (If you look on the card you will see it actually belongs to that

company and you are supposed to return it even though most people do not and just cut them up) Do not believe the old story that it is better to have revolving credit instead of paying it off every month or else you don't get a credit rating. That is bullwash. Charge only what you can pay off in the month. Otherwise you are paying interest charges every month. Do you want to give your hard earned money to a credit card company for nothing? I don't know why people think that

having 'a small balance' on a  credit card helps their credit score it must be some kind of urban myth. The reason you want to pay it off is that if you get the idea ok well I don't have to pay this off you so I will just charge more and more and that is exactly how the credit companies suck you into huge consumer debt. Some companies actually charge  higher interest for higher balances and if you miss a payment by one day you get charged double interest. By the way if any of those cards are from Department Stores send those back don't keep them. They charge you 18 to 24 per cent interest on money they get charged 6 or 7 per cent for. See where the profit is made? Probaby a Visa and a Mastercard are all you need. Good luck.