Should I get another credit card?

[Cliff Rosa]

I want to have all my ducks lined up in a row when I get back from this deployment in Iraq in 10 months to start flipping homes. Right now I have 740 FICO score. I only have 1 credit card with Chase and that is at $3500. I asked for a limit increase but they said that they will need to pull a credit report to raise it. I sent them an email back saying that it would be counter productive to do that and if they will raise it based on my excellent payment history. Ive read alot that Chase rarely raise limits.

So I wanted to know if I should go with a citi card or some other card that will be able to raise my total revolving credit. I was reading that BOA has a card that they will match what you deposit into the account with your credit limit, ex depost 5k and you will get a 5k limit. But they have a very high interest rate and no rewards so I want to look at something differnt. Are there any other cards that are similiar to that?

Last question, I am aware that applying for another card will hurt my score somewhat. But to what extent? And how long will it be effect?

Actually this is the last question promise!, I have heard about the shotgun credit card approval. Basically you apply to a bunch of cards at the same time, preferably the same hour or two and that will give you essentially way more credit cards and a really high limit. Any ideas about this?

Im about to go to bed, really looking forward to your suggestions, thanks BP!

[Jon Holdman]

Why do you want another credit card. Take it from someone who's messed this up. You don't really need any credit cards.

[James Harkness]

With a 740 credit score, you have nothing to worry about. You don't need to improve your credit any further. You are pretty much in the top tier of credit worthiness already.

[Rich Weese]

Hers' a slightly different view with back up info.
My wife and I basically stopped using credit years ago and paid cash for everything. We finally got to a point where we would have to start paying taxes. Decide to pull credit reports and were stunned. Ficos in high 600's and 1 for my wife at 705.
The report has an area that gives you a review of your credit. It said she didn't have bad credit. But, it also said she didn't have enough good credit.
I did some research and found that credit is basically looked at in 3 segments.
revolving (credit cards)
installment (car, appliance loans)
mortgage
We had almost none of the 3! Various places gave more input and it seemed like ficos were lowered if you had under 2 cards or over 4-5. She had a Penneys, and 2 credit cards. She asked for a WAL Mart card at the checkout stand. She was granted a walmart/discover card. She did NOTHING else, no payoffs, added loans, NOTHING. 2 months later she pulled a new credit report. Ficos were 770 average. Nothing else different.
I bought a new car 6 months ago instead of paying cash and added a wal mart card. My ficos are now over 700.
Now, each of us are buying a house to put a new mortgage loan on report. I expect ficos to raise again.
If your credit is good and you apply for and receive a new credit card, the gain will offset any point reduction on the Fico. I would NOT try the shotgun approach. That will cost you points.
The BofA card or idea may not help. I've seen the bank show on the credit report that your card is a secured card. That doesn't help your credit.
As Jon said, you can get into trouble without discipline, but that can happen in real estate also. You need to be smart with your actions.
If you're not concerned about your fico, then go for the higher # of credit and cards, imo. Rich

[Matt Eilers]

While I have no idea if it is true or not, I have heard that having ~3 credit cards is ideal (assuming you don't get into credit debt and not pay them). Just having 3 and using them very rarely may help the score (or so I was told by a mortgage officer).

Matt

[Steve Babiak]

Rich nailed it here. You DO need some creditors in order to have a top FICO score; it's part of their scoring model. How many can be debated back and forth, due to the FICO scoring model being proprietary.

The FICO model components can be found here:
http://www.biggerpockets.com/renewsblog/2008/01/30/how-to-score-big/

PS - I am trying to be careful to only use links to BP material here, due to ______ ....

[Cliff Rosa]

BP at it again, this is information that I am looking for! I have heard from other friends and what not that having more than one credit card is benificial. Just needed you guys to verify it for me.

Thanks Jon for your POV. I understand the problems with credit cards and am well aware of the rules which is what has kept me responsible in using them.

Going to appy for another card tonight after work, Going to get the best possble one. Thanks again everyone.