I heard having too many credit cards can lower your FICO score even if you pay them full each month. How many can you get before they drop your score?

I had problem getting a credit card when I had no credit history and then after I finally got one, I had difficult time getting another one, because banks said I had "too few" revolving accounts. Now I have 5 credit cards and only 1 of them carry balance. My balance to credit ratio is 6% and my FICO score is 740.

the only reason they drop is inquires, you’re getting denied is a totally different thing. first of all 740 is an awesome score. what you really need to do is wait. you need to let your credit age a bit. besides credit score and on time payments, creditors look at established credit and the only way to get that is to let those trade lines age.

Hello. I have a great credit score as of now, but things will certainly change once I fall to foreclosure on my home. 1) Will I lose my existing credit cards? 2) Will I be able to get new ones?

Also, does anyone know how many points you lose with forclosure?
Thank you.

your credit card companies are in the position of canceling any of them without a good reason due to the downturn in the economy
if you don’t use it much, they will likely cancel it, if your payment schedule has been not so good, they might cancel
more than likely they are not informed of your foreclosure
possibility of not getting a new card would be less if you had a bankruptcy
and the foreclosure will definitely affect your credit score

We are traveling from the United States and want to be prepared. Are credit cards accepted at most restaurants? Shops? Hotels?

AMEX and VISA yes, yes and yes. Call the credit card company ahead of time and tell them to note on your acount you will be traveling abroad because sometimes they could put a hold on your card when it is used overseas, thinking it may be stolen. Have fun!!

I have a few personal credit cards and I want to consolidate them. I also am self-employed, but I dont’ have a business credit card; although I get LOTS of ads for them in the mail. I’ve always wondered, what is the difference? Are there different rules or fees? Can you only use them for business purchases? Do you have to spend a certain amount to keep them?

Any advice appreciated…

Personal credit cards are issued to "Persons" and the person is the respondent.(Owes the money.) The business card is issued to a "Business" for the purpose of charging items related to or for that business..Normally business cards are fully paid on a monthly or quarterly basis and are never used for personal things. The respondent is the business (Although a person is normally required to sign for and guaranty the debt on behalf of the company.) If you are a small business, and have a business tax ID number and business license, there may be tax advantages to using a business credit card for payment of all your business related items..Easy way to keep track of your expenses, plus you will get a monthly or quarterly statement from the credit card company which is your receipt for monies spent for your business….Good Luck !

I am applying for a secured credit card after bankruptcy (due to medical bills), Is it to my advantage to get 2 or 3 secured credit cards to build history or only use one? I dont really need or want any loans/credit cards right now and I am big on paying cash but I need to rebuild my credit rating. Will 2-3 secured cards build my credit faster then 1 secured card?

I totally understand you wanting to pay cash for everything you buy, and not wanting to have any loans or credit cards, but you’ve got to understand that credit is a game, you just have to learn how to play it.

These unsecured cards are the only thing that’s going to help you rebuild your credit. Even more, in most cases, than getting negative marks removed from your credit report.

I took my credit score from 580 to over 700 in under 6 months by doing two things, disputing negative marks on my credit report, and getting these merchandise cards.

See what you’ve got to understand is that the biggest mistake average people make with their credit, is that they pay everything off in full every month. In order for your credit score to steadily rise, you’ve got to keep a 10 to 30% debt to credit ratio on all unsecured debt, i.e. store cards, credit cards, and merchandise cards.

You determine your "high credit limit" by simply adding up the credit limits on all those cards or unsecured debt, and simply have balances that add up to 10-30% ratio of your high credit limit.

For example let’s say you have three credit cards with a $5,000 limit each, so you’d have a $15,000 high credit limit. So you’d need to have a balance from these three cards of at least $1500 to get, and keep that 10% debt to credit ratio, and of course like I mentioned you could keep a higher balance than that, as long as that ratio never exceeds 30% you will certainly see your credit score rise consistently.

Now the problem for most people with bad or problem credit is that they simply can’t get approved for regular credit cards, so they must get these merchandise cards instead. The key here is that a merchandise card and a "regular" credit card report and are considered the same on your credit report. So the credit limit on the merchandise care gets counted as part of that high credit limit we talked about earlier.

So for example: Joe wants to raise his credit score. He currently has two credit cards that have $2,000 limits on both. So currently his high credit limit is $4,000. But he has maxed out both of them. So his debt to credit ratio is 100%…not good.

So what does he do? He gets several merchandise cards. One with a limit of $10,000 and two more for $5,000 each. So now, Joe’s high credit limit has suddenly gone up to $24,000. Now considering Joe doesn’t abuse his merchandise cards and only uses $1,000 between the three of them, he now has $5,000 in debt to his available $24,000 which gives him the debt to credit ratio of about 21%. Which as we talked about, is between the 10-30% range.

Now Joe will continue to make the minimum payments on all his cards in order to show a good payment history, and this will allow his credit score to quickly and consistently rise.

This example can be done the exact same way if you’re starting with no cards or no high credit limit at all.

Also, check out the credit secrets bible at the website I’ve listed in the source section of my answer here. I don’t make any money if you buy one, or whatever, it just really helped me get ahead in the credit game, and change my life as far as credit goes. I tell all my friends and family that have credit problems about it.

Hope this helps,
Matthew

I have been using rewards cards and paying off the balance for years. I have read that applying for new credit card wont affect your record if you only get one, and don’t open too many in a short period of time. Not sure what "short period of time" is . There are 3 rewards cards I have been meaning to get because of bonus/rewards, but not sure how I should space them out.

Generally, each time you open an account there is a small temporary drop in your score (think the 15 to 20 point range). If you have revolving debt it is possible that your score can even increase due to a drop in overall utilization ($2000 debt with $4000 total available will reflect much more poorly than $2000 debt with $7500 available). As your accounts age this temporary hit will vanish.

If you plan to apply for a mortgage, avoid opening new cards at least six months prior to that date. Avoid applying for new credit before looking into a car loan.

Existing creditors sometimes become nervous when you open numerous new accounts. If you open three new accounts at once this can lead to potential trouble, especially if you aren’t familiar with your current creditors (they all respond differently). Provided you aren’t already dealing with a number of creditors I would suggest picking out two of your favorites, applying for them, and then going back to snatch the third about three months later. Only apply for a card you expect to use and be careful about annual fees (unless they are plenty well justified as might be the case with, say, an AmEx charge card).

The more extensive your credit profile, the more cautious you should be about opening multiple new accounts in quick succession.

I am wondering if there are any, decent, credit card companies out there that are issuing unsecured cards to people with bad credit. I am tryin to rebuild mine and already have a Premier Card. I need another to continue. Any suggestions?

Get a credit card from local bank and pay it in time. You also can use this service to avoid common mistakes while buiding credit and pre-estimate future scores for different scenarios of payments – credit-report-score.10001mb.com

I want to buy a car, and am considering applying for a car loan.
What do lenders look for as a bare minimum to get a loan?

I have no possibilities for a co-signer, I have been in the same job for 3 years, so I have steady income, and I live at home so I don’t pay rent/mortgage.

Also, what lenders are usually more willing to give loans? Banks, credit unions, etc..?

Thanks!

Here are some factors that lenders consider: credit score, employment and proof of income, residential address, value of car to finance, length of terms, downpayment, current loan standings or recent credit records.

Since you have a steady job, a stable income and a house you fully owned, you can easily get a car loan. However, the amount they will lend to you and the annual percentage rate of interest they will impose will be affected by the factors i mentioned above.

Banks offer better interest rates and are more quick in their approval and release of loan amount. So, I would say, you check the banks first.

Ken
http://www.carbuyhelp.com
1-800-951-4714

I recently had to defer my salary at my job for an extended period and cannot afford to pay my credit card debt. What should I do? A friend advised me to not make the next payments and negotiate with credit card companies on the debt. Is this wise? Would you advise I do something else? Thank you.

See the following options to find the solution that is best for you:
~Credit Card Debt Consolidation
These come in two forms: personal and home equity. If you don’t own a home or your home doesn’t have equity, then you should apply for a
personal debt consolidation loan. Interest rates are higher than home loans, but lower than credit card rates.
~Credit Counseling
If you need help paying off your credit card debts, contact a local credit counseling service. The service will review your debts, income, and expenses, and work with you to create a payment plan. They may suggest a debt management plan. The service negotiates with your creditors to reduce your interest rates and set a fixed monthly payment. Once your debts are enrolled in the program, you no longer have access to the cards, which prevents you from creating new debt. In addition, you make a single monthly payment to the service, which then distributes it to your creditors as agreed.
~Credit Card Debt Settlement
If you owe significantly more than you can pay, and can’t reduce expenses or increase your income any further, a credit counseling service may recommend debt settlement. Also called debt negotiation, debt settlement actually reduces your total balance due. The service contacts your creditors to negotiate a new lower balance and a new payment plan. You may either be required to make a lump sum payment or monthly payments. In most cases, debts can be reduced by 40%. Before choosing this option, remember that debt settlement may damage your credit and you may owe taxes on the unpaid amount.

Hi All. I’m a recent college grad who is fairly new to the workforce and is ready to get rid of her credit card debt!! I was fortunate enought not to borrow much in student loans (a total of about $9,000), however by grad time I owed about 9 thousand in credit card debt. Now I am ready to get rid of this burden. I know that this sounds horrible, but my situation was very different than that of the average student. I am a mother and was raising my daughter the whole time during college. Instead of working full time I focused on my studies and only worked part time. Needless to say this made everything harder but in the end it was worth it. Also, I’m not looking for an overnight solution. It took me six years to accumulate this debt so I know it wont disappera overnight. I’m just looking for the best way to go about it. Please help!

The amount of people throughout the United States who find themselves in debt continues to rise. For you, raising a child while being a college student made your financial a difficult one. For most, however, debt is the result of extraneous spending, poor money management, or both.

Below is a list of ten tips to getting out of debt. Some are easier to follow than others, but all are designed to help alleviate the problem – so take comfort in the fact that you can solve your debt, though it will be a tough process…

Ten peices of advice from allbusiness.com:
1. Create a realistic monthly budget for your expenses. List all monthly bills and necessities and make sure they are covered by your monthly income. Allow only the money remaining after the bills are paid to be spent elsewhere. Stay within your budget guidelines.
2. Pay off the balance on the credit card with the highest interest rate first (unless the balance on any card exceed 50 percent of your credit limit). First, pay all balances to below 50 percent of the card limit because balances above this level cause your credit score to diminish. Then pay off the balance on the credit card with the highest interest rate. If the account was opened within the past year and you have additional older accounts, close it after it is paid off. Next month do the same with the card that has the next highest interest rates. Continue until you reach the credit card with the most favorable terms (i.e., low interest rates). Use this as your preferred account. You need only four open accounts to establish a positive credit history.
3. Learn to use cash instead of credit cards. Have one primary credit card and use it only for emergencies or major necessities, such as a new refrigerator if the current one stops working. Put your credit card in a safe place, not available for everyday use. Also, do not accept increases on your credit card limit above an amount you can easily pay off in three months.
4. Use direct deposit for your paychecks. Also have a limit on how much you will allow yourself to withdraw each week and month.
5. Cut down on your discretionary expenses. This includes dining out, overusing your cell phone, and other such unnecessary expenses.
6. Evaluate your living situation. Your housing costs should be no more than 33 percent of your household income, including mortgage payments, property tax, and both property and homeowner’s insurance. You can shop around for lower insurance rates, refinance your home mortgage, and look for more economical utility plans.
7. Avoid borrowing money to get out of debt, especially consolidation loans. Many people think this is a way of helping them get out of debt. However, consolidation loans are simply a means of combining debt. You could end up losing everything because you’ve tied it all up in one loan. If you must borrow, see if a friend or family member can lend you money, since the interest rates should be low or nonexistent.
8. Contact your creditors and try to work out repayment plans. Many creditors are willing to work with you in a manner that will help them get their money without having to resort to debt collectors.
9. Become a savvy shopper. Look for deals, bargains, and savings. You’d be surprised at how much you can save if you take the time to shop around. Check out the price comparison Web sites such as Shopping.com and BizRate.com.
10. Look for extra ways to make some money. From part-time work to a garage sale to taking in a boarder, there are many ways to bring in some additional income.

If all else fails, seek out help from a debt reduction specialist or counselors [see link below] who can help you formulate a plan for getting out of debt and staying out. Just make sure that you check out the service in advance. Many companies are simply taking advantage of people in debt and charging them high service charges.

For MSN Money’s take on credit card debt, follow this link-
http://moneycentral.msn.com/content/Banking/creditcardsmarts/P74808.asp

For more advice, these are also helpful allbusiness.com links-
Should I Borrow Money to Get out of Debt: http://www.allbusiness.com/3915481-1.html
To Get Matched with a Relief Specialist:
http://www.allbusiness.com/3776688-1.html

Good luck in climbing out of debt. Try to modify your personal finance outlook in doing so, and you should be well on your way.