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Question By
cblansett06

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If I get a Secured Card does a high limit increase my score more?
If I have a chance to get a Secured card with a 300 limit or one with a 500 dollar limit which will raise my credit score more. Or is it better to get one of each. How would both out comes affect my credit score.

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Not much difference

A secured card is a secured card. Doesn't matter how much is the credit limit. Secured card means you are building or re-building credit (and hence, cannot get regular credit cards). Having a higher credit limit will only help you to have a lower utilization ratio. For instance, if you use $ 200 on a $300 limit card, utilization is 66% (not good). Same utility on a $500 card will be 40% (better than the first one).

You can get two cards, which will show two active accounts on your report (good thing) and also allows you to carry different cards (VISA vs MasterCard for example). But that also means locking up that much money in deposits and paying annual fee for 2 cards. Instead, have one card with a higher credit limit and save on annual fee. It all depends how you play it. As long as you have the 'secured card' stamp, it really is not that big difference.

Reply by
cblansett06

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Ok  I was wondering becuase I have never had any type of credit card and I am tring to get one.

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