Advice on building credit?

Hi. I have bad credit. My score is 530. I am now debt free, and have learned to be very responsible with money and paying things on time.





I've decided to take out a secured credit card from Bank of America to rebuild my credit now that I am much more responsible with money. Someone told me it's actually a better idea to have 2 of these cards, and pay both off in full every month, to build credit faster. Is this true?





Also, I've heard another thing that builds credit is your ratio between what you owe and your limit. So someone told me with a secured credit card, although I only have to put down I think $300 for it, it'll be better to open one with a higher limit. Any truth to this?





I look forward to some helpful advice!Advice on building credit?
In order to build credit, you must have open accounts in good standing in order to do that, so yes the idea of 2 secured cards is a good idea. Also, 30% of your score is that ratio of credit available to use to credit used. The higher this ratio, the better it helps your score.Advice on building credit?
A ';Secured card'; is probably good considering your history, but move to a regular one say in like 6 months or so.


Don't borrow more than like 25% of your credit limit, and then pay like 3-4 times (or more) above the the monthly payment that appears on each months statement.


Most single monthly payments barely cover the interest and insurance on the account, if you carry insurance.


I don't know as I fully agree to the fully paying off a balance every month as it building credit faster. The KEY is to have a loan, say $2000, and pay like $200 a month till its paid off or down to a much lower amount, and continue using it. That is what builds your credit rating as it demonstrates a payment history on an open account balance, and that you payed ON TIME each month, and MORE than the minimum.


Too many credit cards is seen as an INCREASED RISK. Whether you use them or not, just because once you have 2 or 3 more credit accounts opened, even though there is no balance...the companies KNOW that you COULD at any time do so. So that can be a downer on your credit score without even doing anything, REALLY.


Stick to the (1) card, and move on to an unsecured one say after 6 months to a year, and manage it VERY WELL and ALWAYS pay on time.


A Company will increase your credit line as you prove your worthiness and consistency, and lower your monthly interest rates as well as your FICO score increases.


Another thing that REALLY helps is job stability (not hopping around) and a residence address of 3 years or more. Again, this adds a (+) to your score and credit worthiness.


Many.....MANY employers use your credit score as a character reference before hiring you for a job and consider this to be more powerful than a personal reference(s) on a resume. Money management tells more about a person than probably anything else we do in everyday life.


Believe it or not , a persons credit score and signature is 2 of the most important assets you have.


So, build that score carefully and solidly, and you will be rewarded in the future with higher credit limits, many credit choices, and much lower rates than the average consumer.
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Good luck!