Not sure if more credit will hurt or help my credit

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Joined: Mon Oct 22, 2012 8:18 pm
Location: West Hills

Not sure if more credit will hurt or help my credit

Postby dragonwalker » Mon Oct 22, 2012 8:34 pm

Hello everyone,

I'm currently 24, I have an unblemished credit history since I was 18 when I obtained my first credit card. I recently received a mail offer from American Express for their Blue Cash Everyday card with a chance to earn $250 after spending $1000 in 3 months. What I like about it is the 3% on supermarkets, 2% on gas, and blanket 1% on everything else plus no annual fee. I don't have a American Express card in my name so that is also another appeal.

On my record I have no other debt other than my credit cards and I have a record of a car payment and student loans paid as agreed and all paid off. My main question is, given what I have, would having more available credit hurt me because I have heard that some lenders will see that it is more opportunity to run up debt. I'm also not sure if cards that I am only authorized signer on will be added to my own available credit. Below is what I have:

Mastercard (no rewards)- 6 years- 9800 line, balance about 0
Mastercards Cash Returns (1% cash back)- 5 years- 5200 line, balance about 500 paid in full every month
Mastercard Dividends (1% cash back)- 2 years- 7000 line, balance about 0
Department store credit card-0.5 years-1200 line, balance about 0
2 x Overdraft lines of credit at a bank- each about 1500, balance 0

I'm an authorized signer on:
Airlines reward card- 4 years (opened for about 4 years)- 7000 line, balance about 3000 paid in full monthly
Airlines reward card- 6 years (opened for about 12 years) - 15,000 line, balance about 0

Annual income about $45,000

Posts: 2
Joined: Mon Oct 22, 2012 8:18 pm
Location: West Hills

Postby dragonwalker » Sun Nov 04, 2012 11:40 am

bump, I still would appreciate some help here

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Postby Robrus1 » Tue Nov 06, 2012 8:44 am

If you want the Amex, apply for it. It won't hurt anything. Being an AU may or may not help depending on the lender, but they won't consider the cards you're an AU on debt you'd be liable for if you went on a spending spree.
Amex Platinum
Amex BCP 21K
Amex SPG 5K
Barclaycard Arrival Plus WEMC 5K
Chase Sapphire Preferred 23.5K
Credit Union 10K
Discover IT 7.75K

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Location: WA

Postby NorthCol » Sun Nov 11, 2012 1:45 pm

Always go for more credit.

Basically, lending money is a paradox. Lenders want to lend money to those who have large lines of available credit and don't want to lend money to those who don't. Obviously, in reality, people who have large lines of credit available aren't the ones who need more money. "Experts" claim that you shouldn't go above 15% of your available credit but banks in fact are always prepared for you to use 100% of your available credit.

You just shouldn't use 100% of your available credit all of the time. The bank doesn't care otherwise because it is in the business of earning money from your use of credit. And everyone who uses credit pays for it either in the form of an annual fee, membership fee, or interest whether they use a credit card or a charge card.

Credit card "rewards" are simply a small rebate on the cost of using credit, but the banks make up for these by charging higher interest on rewards cards while their advertising makes you think you are really getting something. All in all, it doesn't really matter which credit card or charge card you get since they all cost money. You should aim for an ever increasing credit portfolio.

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