Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Credit Cards
Profile Image

Question By

1 Contribution
1 Person Helped
Repairing credit: Multiple secured cc vs Paying down debt
Hi guys, two questions...
Whats the number of secured credit cards and credit limit I should get before their boost diminishes and I start getting dinged for too many inquiries and average age of credit? Here's why I'm asking, I'm trying to rebuild from a credit score of 500. My average age is 6 years and most of my debt is five year old defaulted student loans and medical bills in collections, added recently. 

I just opened a $300 credit card after not having one for 5 years. What boost to my credit score can I expect to see immediately and as I make full monthly payments on $30 charges? What would happen if I applied for and received a second and third credit card and so on? For instance, I've heard that I should see an immediate boost of 20 points and that my score will raise 5 points with every on time,fully paid, under 10% utilization, payment?

First, is there any truth to this, secondly, if so how long will that boost last, and thirdly, how would opening multiple accounts in this way affect my credit?

Second question, in order to diversify, how likely can I qualify for a secured installment loan at my credit union using my car as collateral, and request a similar amount? For instance if my car blue books at $1000, what are the chances that I can get a secured loan of $1000, 24 months repayment, even with my credit score of 500?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.