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!

Question

Posted in Credit Cards
Profile Image

Question By
YoungCredit99

0 Contributions
0 People Helped
Should I get a 2nd Credit Card?
To sum things up, I have a $500 limit that is basically maxed out and has been for the past month. I'm only 22 so I'm still learning about this stuff. The thing that hurts my score the most is the fact that I have multiple student loans from the past 2-3 years for personal family reasons, otherwise I know it's bad to get them. I've only had my current Credit Card for maybe 6 months. My reasons for considering a 2nd CC is to help my score as well as to safety net a move for my mother and myself into our own place since my father passed almost 2 years ago. Any opinions and feedback are welcome as I'm sure there many reasons as to why it's good or bad to get a 2nd CC with such little, and painful, action on my history.

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-4 of 4Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
675 Contributions
353 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

Also, you might have to pay down that card before you can get another card.... banks really dont like to loan money to someone who "needs" it.  it is much easier to get credit when you dont need it.  So high utilization is a red flag.  Pay it down  a lot before you apply for a new card.

Top Contributor
17 Contributions
13 People Helped

Helpful to 1 out of 1 people

It is fine to have multiple cards, as long as you don't actually use all of them. The more cards you have, the higher your limit.

Let's say you have $450 on this one card. You are at 95% utilization, which is really hurting your score. If you had another card that also had a $500 limit, but you didn't use it, then you'd drop your utilization down to 45% because you are only using $450 out of $1000.

But don't get another card just to run that up to near max, or that will hurt your credit even more, and make it harder on you with two monthly payments instead of just one.

tl;dr - good idea if you get a new card just to increase your credit limit and utilization (aka don't actually use it), bad idea if you are just going to run it up like the first.

Top Contributor

Reply by
JoulesMSU

17 Contributions
13 People Helped

*Edit: I meant 90% instead of 95% above, I don't see a way to edit the post though. 

Top Contributor
5038 Contributions
1136 People Helped

I would get the first card paid off or paid down to a low utilization before applying for another one. Adding more debt is never a way to get out of debt. Be careful and read everything that you can about credit, you are heading down a bad path regarding finances and credit.

8 Contributions
1 Person Helped

Indeed payoff first card below 30% and go ahead get a new card.

Results 1-4 of 4Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

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

View your scores and reports anytime.

SIGN UP NOW

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.