Will this hurt my credit?

I would focus on just the one for awhile, to be safe. Spend wisely and pay off monthly until done. If you’re doing well on that loan or pay it off, as far as payments and being on time, then you can consider a starter card.

Just remember, you have to know yourself and your spending habits as well as your self-discipline before you get a credit card.
Check out Dave Ramsey’s financial advice on credit, he’s helped millions of people get a realistic view of credit and debt. Highly recommend you read the book.

Why is your credit bad?

Dutchess lll I ordered things on credit then lost my job

Loan for what?

Have you paid the credit card bills now in full?

Security deposit on what? An apartment?

The loan is for a car and the security deposit is for the credit card I’ve never had a credit since I turned 18

I’ve managed to achieve a 780 FICO score after digging myself out of credit card debt from irresponsible charges in my youth (I’m 64 now). Applying for credit cards when you NEED them is probably the worst step to take prior to repairing your credit. This is especially true if you haven’t corrected the spending habits that created the bad credit you currently have.

Credit card and loan companies are in business to make money. They do so by charging high interest rates to consumers who borrow or charge more than they can reasonably pay back. This, of course, plunges them deeper into debt.

I have 5 credit cards today. As a general rule I avoid charging anything I can’t pay back in full within 30 days. I won’t even consider applying for a loan unless it’s an absolute emergency. My last loan was for car repairs. I transferred the loan amount to an interest free credit card and paid that off QUICKLY within the introductory interest free period.

We all have situations when we need to borrow money. But excessive debt is easily avoided when we refuse to spend, or obligate ourselves to spending more than we earn.

Open credit raises your credit score. What that means is having a credit card you don’t use will make your score higher, or if you do use it, using very little of available credit and paying on time, and you should pay in full so you don’t get gouged with high interest. Never charge something unless you actually have the money.

There is a MYTH that if you pay in full your credit score will be lower. My husband and I always pay in full (always as in over 30 years) and his score is always above 800. Mine is usually slightly below or above 800 because I have more medical bills and healthcare is a nightmare and pulls my score a little down once in a while.

So, for example your credit card has a limit of $5,000 and you charge $300. Your open credit is $4,700 and then you pay in full and it goes back to $5,000. Even if you pay in full every month, when they run your credit if the $300 is on there at that moment it will show as money you owe

By you not using all available credit it’s demonstrating you control yourself, and don’t just spend wildly just because it’s given to you.

I’ve never heard of a security deposit for a credit card. What credit card is it? Are you sure it’s a credit card and not a debit card? A debit card does nothing to help your credit score.

@JLeslie Seems like she’s referring to a “secured credit card” which requires the user to deposit the money used as available credit on the card they issue. In effect, the money charged on the credit card is the money deposited. At 6–8 months the account is reviewed. If the user demonstrated responsible card use the financial institution may decide to return the deposit and authorize a true credit limit.

I think secured credit cards do build credit. As long as it’s not a prepaid card, which functions like a debit card and does nothing for your credit.