Is getting 3 secured credit cards a good idea to rebuild my credit?

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Here is my situation. I just recently paid off all of my credit card debt and the only debt I have is a student loan I’m paying off, which I have never been late on.

I already have 1 Orchard Secured Mastercard and my credit score is already improving (it went up by 14 points this month). I’m thinking about expediting this by getting 2 more of the same card and using all 3 once a month to buy small things like car gas and chapstick and then pay it off.

Will getting all these cards in such a short time frame hurt my score, or will my idea of trying to rebuild credit quicker work?
I make enough to pay off the minimum, even If I had 3 cards. Only reason I was in the hole was because I was 17 years old and could not get a long-lasting job. I’m in the military now, so that is no longer an issue.

And why would I need a brokerage account? That sounds completely useless for what I’m trying to do.

  1. Reply
    Frank Castle
    January 29, 2013 at 3:16 am

    You score will improve each time you get a new Credit Card.

    DO NOT USE YOUR CREDIT CARDS to buy anything.
    That’s exactly how you fell in the hole.
    Do not make the same mistake twice.

    Keep going until you have at least one year of salary in Credit Lines and enough money saved in the bank to pay at least the minimum monthly payments for all your Credit Cards for at least a year.

    I also suggest you to buy a brokerage account at Zecco and buy at least one share of Microsoft, Sony or Nintendo each month until you have at least $ 2,000.00 USD for a margin account.

  2. Reply
    January 29, 2013 at 3:54 am

    You have made the right first step by getting a secured credit card. That was the first step I made when I was following the advice of Suze Orman from her book Young, Fabulous & Broke. She has a ton of advice in there on rebuilding your credit as well as other things financially related such as mortgages, stocks, 401k, etc. I am not looking at the book right this second, so I am not sure if she would recommend getting another secured credit card. What I did was get one secured card and then one unsecured card from a department store. Then I use them both a little each month and pay them off. I have raised my credit score quite a bit doing that. The most important thing is time and on-time payments. Unfortunately, once you screw your credit, you just have to be patient. I would recommend reading the book I mentioned and/or any other book by Suze. The more you understand about credit and how it works, the better decisions you can make. Good luck to you!

  3. Reply
    brady ewart
    January 29, 2013 at 4:23 am

    The following 5 critical factors affect your credit score in a major way. By knowing these you can keep a check on them and make your credit score a healthy one.

    1. Re-payment history

    This factor carries the highest weight in your credit report. How steadfast are you in repaying your loans, makes your credit report shine. Experts claim that this factor alone accounts for 35% of points in your credit score. So, if you falter on repayment front it is sure to be reflected poorly on your credit score.

    2. Outstanding debt

    The next comes your debt burden. How much you owe is a factor that according to experts carries about 30% weight in your credit score. This is
    30% is based upon outstanding debt. To get a better score it is advised that you keep your outstanding debt to a minimum.

    3. Length of your established credit history

    The time for which you have a credit history also matters. The longer your established credit history the more credit reporting agencies believe in you. This could be simply because of the fact that they have more data to analyze your financial position. Experts give it a 15% weight in determining your credit score.

    4. The state of your financial accounts
    How much money do you have in your bank account, your income levels, your house, car, your assets etc. comes the next. A healthy bank account reflects a healthy credit score. Experts find that credit reporting agencies give this factor 10% weight while determining your credit score. Read more from:,5_critical_factors_affecting_your_credit_score

  4. Reply
    January 29, 2013 at 4:53 am

    You have asked a very good question. Yes, getting two additional cards at a time to add to the credit card account that you already have with Orchard Bank, while still paying your student loan, will definitely hurt your score at the initial stage. But as time progresses – if you were able to manage all the four accounts wisely and responsibly, your credit score will continue to increase steadily.

    Therefore, my advice to you is this: Continue to keep in perfect standing your secured credit card account with Orchard Bank, as well as with your student loan account. This would raise your credit score higher in a shorter time (and should continue – provided there’s no late payment – and you don’t exceed your credit limit), than if you were to obtain two additional credit card accounts at the same time to add to the one you already have, along with your current student loan.

    While thanking you for sharing your question on Yahoo, I hope you find the above information that I have shared useful.

    Best wishes!


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