strong enough
Whats the best way to get started with a credit card? Also any strong advise would be appreciated.?
Question
How does opening a credit card from a different bank affect my credit account?
I talked to an old college roommate a few months back, and he told me that he has opened up 4 credit cards and that he basically leaves them alone, and thus he has developed a credit line strong enough where he could even purchase a house. Now, I have a credit card from Chase Bank, which I've used for a year and always made every monthly payment promptly. So if I went to Capital One and got a credit card from them, how would Capital One already know of my personal credit that I've built with my Chase credit card? They wouldn't have me start on a new credit scoring system, would they?
6 months ago - 1 answers
Best Answer
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When you use credit you start accumulating a credit history that other creditors can use to determine whether you reliably pay it back on time. Things that are not supposed to be credit (utility bills, like phone, etc.) don't count towards your credit if you pay them, but can count against your credit record if they become too delinquent. The longer your credit history, the more reliable the data. Having credit and using it wisely helps your credit rating. Using too much of your available credit or paying it back too slowly (minimum payments) can count against you. Having credit that you never use could leave questions about whether it would be a waste of time and money giving you more credit. So if you have multiple credit sources you should at least vary which you use to build a history with both, even if you pay them off right away (they still make money from merchant fees).
by efflandt
6 months ago
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