Should I get a 2nd credit card?

Question

Here's my situation. I  would like to buy a house within the next 1-2 years and want to do everything I can to get my credit score as high as possible by then. These are my credit accounts:

Wells Fargo Platinum Credit Card(auto-upgraded last year from the college card)- had it for 3.5 years since the day I turned 18. $6500 limit. I use it for everyday purchases and pay in full every month usually around $1000.

Auto Loan- Had it for one year, already paid half off. Remaining balance about $6500.

Student Loan- $10,000. Going to be entering repayment in 3 months at $86 a month.

When I opened the auto loan they told me my FICO score was around 710 I believe and currently Credit Karma gives me a score of 729. One of the things that I notice is although it's a low factor, # of credit accounts being 3 is considered very low and a negative impact on scoring according to credit karma. So, I'm considering opening a second credit card so as to raise that number of accounts. Seems the earlier I add another account in life the better since age of credit accounts is also a factor. Considering I am going for a home loan in the next year or 2 should I open a second card now or forget it?

bdancer222 · Accepted Answer

Opening a second card might be a good idea.  It will expand your credit history and give you back up to your existing card.  You will have to use it periodically for it to build your credit.  Unused cards do nothing to build credit.

Opening a new account will lower your average age of accounts which can hurt your score, but since your oldest account is less than 4 years, it won't be much.

By the way, do NOT put much store in any of the credit tips you get on CreditKarma or any other credit service.  They are computer generated based on keywords and usually have little to no real value in increasing your credit/score.

The best way to build your credit is on time payment history.  35% of your score is based on payment history.

? · Answer

Yes, do it now while you're still a ways off from getting a house.  A credit card's maximum benefit is if it's over 2 years old and has a credit limit of $5000 or more.  Things that harm it include balances that are more than 33%, balances that are more than 50%(a bigger hit) and using 50% or more of your available credit (all cards combined).  You don't have a problem with those so it should be good for you.  You'll get a hit for an inquiry but it shouldn't be too bad if you only do it once or twice.  Plus I believe they come off your credit report after 6 months.

? · Answer

You are living right,. and a second card is always good to have.  {Try for a rewards card.  Especially if they give you needed points, or $ to sign up.  Just do not get one that charges an annual fee.}

Getting approved for a mortgage also entails job history and stability, down payment; and you should have a cash reserve beyond that.  Happy house hunting.

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Should I get a 2nd credit card?

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