Secured Credit Card?

Question

Rebuilding my credit. Going to get a secured card from BOA. I have $1000. Is it better to get one card from BOA with $1000 limit or get a $500 BOA and a $500 card from my bank? Which way will build credit faster? Higher limit vs. 2 accounts in good standing?

Answer 1

I've been in this situation before, and my suggestion would be to go for both. I've had Bank of America as a secured card sometime ago, and it's by far the best overall secured card, also if you're able to get one from your bank, by all means do that as well. It would help to increase the limits on both whenever possible because it helps to have high limits on 2 accounts in good standing. An easy way to manage both accounts is to make SMALL purchases (max $20/month), pay it off in full, on time every month, while adding to the security deposit as much as possible. At some time later on the accounts will convert into unsecured ones, and more than likely, the limits will remain the same if not higher and the deposit is given back, so it's important to build the limit as high as possible while you have the ability to do it, since you can't control the limit with an unsecured one.

Answer 2

Credit history will build up,once you start using it and paying back on time.If you'r planning to spend say nearby~1000$ every month...on credit ,get a BOA $1000...it is easy to remember payment and manage 1 card,rebuilding your credit.

Else if ur spending < then 500$ on credit,go for BOA card.Keep another 500$ incase you exhaust your 1st card.This will keep your credit spending under check.

Remember all bank share their records with other bank....keep an habbit to pay off on time....to build your credit history.

Happy spending!! :-)

Answer 3

Don't spread yourself between 2 credit cards. For one thing, it makes things more complicated. Plus, with such a small line of credit (ie: $500), having 2 cards really won't make a difference. Although your credit score takes into account a diversified 'credit mix', 2 credit cards with small limits won't help. You need to have different types of credit: ie: loans, credit cards, mortages, etc.

More importantly, you credit score takes into account your total 'available credit', and the amount you're using. Either way, your total available credit will be $1000. So 2 cards won't make a difference. But make sure you try to avoid exceeding 50% of your available credit (ie: $500). This could have a negative impact...

At this point, don't apply for a 2nd credit card until you actually need it ;)