I use a variety of free apps on my phone(and can access online in web browser). One such app goes through each factor affecting my credit score. On one of the factors it says I should have 6 lines of credit. Is this normal? I ask because I only know a few things I can do with “bad” credit. I can apply for a credit builder loan, apply for a secured credit card, try to apply for a regular loan, try to apply for a car loan and lastly apply for a mortgage(least likely to do at this time)! That’s my options, 5 total. Of those maybe 2 are feasible at this time. I’m well aware that if I apply for a secured credit card it will generate a hard inquiry. With all this said, is 6 lines of credit and/or credit mix normal(sorry for asking twice)?
Welcome back, @deadmanmoshing! I’d take that, and any other advice you get from an app, with a grain of salt. In general, having more credit accounts is good; but that doesn’t mean having 2 or 3 accounts is bad (or that having 15 to 20 is bad, for that matter). If you’re starting out with bad or no credit, a credit builder loan is a good way to start fixing that; after a year or so, your scores could be good enough to add an unsecured credit card or two. After that, you can apply for credit when you need it and not have to worry too much about your number of accounts.
@lweston thank you for your reply! That’s what I thought about the 6 lines of credit. It seemed sort of high to me.
HI ---- Regarding the recent massive HACKING of CAPITAL ONE’S personal
information of Cardholders info, if it a good idea to apply for their
credit-builder pre-pay card? Currently have NO credit cards,
and a 607 Credit Rating…Did that hacking event negatively
impact their business? R. Stevens
I think it’s about average…depends on which bureau/company you ask, but 3-4 credit cards and one or two installment loans is the norm. Those of us who like credit card rewards often juggle a lot more…and still hit the 850 bulls-eye from time to time. It’s way more important to pay bills on time and use only a fraction of available credit than it is to try to optimize the number of accounts.
Welcome to the community, @mister22rich47! Capital One isn’t going anywhere, but there are a number of secured card issuers to choose from:
We’re also fans of credit builder loans, btw:
Hi again @lweston,
I just want to mention I’m poised to get a secured credit card and start a credit builder loan. My scores have rose to 565, 555, and 535(Experian, TU and Equifax respectively). That’s up almost 100 points in 6 months. I’m debating whether to apply or not on secured credit card or not. I have 6, 6, and 10(same order)hard inquiries and know when I apply it’ll produce another hard inquiry. The question is do I do it(try for a secured cc)or do I wait until some inquiries drop off? My thoughts are mixed. Part of me says go for it, to establish a new line of credit(if and when approved)and the other part of me says, hold off until some inquiries drop off so it don’t look like I’m trying desperately to get credit, noting all the inquiries. Any ideas?
What if you chose a secured credit card that did not require a credit check? Shop carefully, and I’ll bet you can find one.
@lweston that’s an option. The factors that I’m weighing in on is, secured to unsecured ability, overall security of my information(with hackers always breaching systems, that’s a tough call)and the best interest rate(the lower the better, I’m well aware that secured cc’s are higher). The no credit check is nice but, I am leaning towards the graduating from secured to unsecured cc.