Currently my score is 604. I opened up a credit card account this week so I can build credit. I know it's bad for your credit if you open up a bunch of credit cards all at once but how long should I wait until I open another one. I basically just want to build up good credit to buy a house within about a year and a half. Will it be to my advantage to open one within a couple months or should I wait like a year?|||- Do not carry a balance on that credit card if you want to improve your credit.
Carrying balances does not improve your rating and can actually destroy it.
I developed top 800+ scores by having 2 cards and paying in full each month.
I never paid a penny interest or fees.
Get serious about learning how to use credit if you want a house.
New credit reduces your scores for 6 months.
One or 2 credit cards is all you need for top scores.
I would open another one.
I would use one for gas, and one for food, and pay in full.
Never buy anything large, for that - just save up for it.
Remember: do not open any new credit 6 months before buying your home!!!
A month before you purchase your home, do not use your credit card, or pay it off every 2 weeks.
You wan't your balance as close to 0 as possible, but you want to show usage.
Tricky - I know - but you can do it......|||Because you are planning for a mortgage in about 1 1/2 years, I'm going to have to go against some of the others answers in this question.
I agree with Madoff and if it were me, I'd go ahead and take the hit of the inquiry and the new account reporting now and then let the accounts age.
By the time you plan to go mortgage shopping your accounts would have somewhere around 1 1/2 years of age on them and, if you keep the accounts in good order, you would have around 1 1/2 years of positive payment history attached to them.
If you are planning to mortgage shop, do not apply for anything at least 6 months before you apply for a mortgage.
When you apply for a mortgage, do not apply for anything until the mortgage is signed, sealed and delivered.|||Opening up numerous accounts will not raise your score, it will have an adverse affect on it instead. Too many inquiries are a no no according to FICO.
That card you now have is showing a "hard hit" on your report and will remain on your report for 2 years (as per Running of Reporting Period - Section 605 [15 U.S.C. 搂 1681c]).
You should wait at least a year before opening up any more accounts. IF you simply follow the basics your score will rise in no time.
Pay on time
Pay more then minimum
Never charge more then 30% maximum on your current cards credit limit and keep your balance low.
After a good history for 12 months, your score will rise and then you can apply for another card. FICO recommends no more then 4 credit cards and/or other revolving accounts.
Hope this helps answer your question. You can read more from FICO at the site I have referenced in the source area|||Wait at least 6 and preferably 9 months. Do NOT apply for more than 1 card. If you get declined, wait another 6 to 9 months. Make sure you use the card you have for small to mid-sized purchases and pay off the balance each month.
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