Secured card vs. Pre-Paid Cards

[tampajm]

Greetings. My score is 690 and I want to build it up by adding more lines. I have one new BofA Visa with a $10K limit, a Macy's, and 4 mortgages. No late or collections. I just applied for a Chase/Southwest premier Visa.

I am now considering adding a pre-paid (AMEX/Serve) or a secured card (Cap 1). In general, given my situation can anyone recommend whether I apply for a pre-paid or a secured card? I've heard that a secured card is better for increasing your score. Also, any thoughts on AMEX/Serve or Cap 1?

[CTSoxFan]

A secured card is used to rebuild your credit. I don't see you in that boat, so I wouldn't be looking for a secured card if I were you. Prepaid cards do nothing for your credit.

[lilyflower]

Prepaid cards are generally worthless since they don't report. The only reason I can ever see to use one is for rewards (ie, you do the Target Debit for 5% off because you can't get a Target Red Card) or to secure cash while traveling. Otherwise. Don't.

 

Also 690 is not really considered rebuilding (that's more mid 600s and below - often times below 600). You can get a few decent unsecured cards with that score. If you can get a BOA $10K limit card you don't need to waste your time on either a secured card or a prepaid

[legaleagle2012]

I've always heard that adding more accounts drives your score down because of the potential to incur more debt. Borrowing money at 25% for the sake of being able to borrow more money at 25% makes no sense.

[BobWang]

You have been mis-informed

[Burgerwars]

I've always heard that adding more accounts drives your score down because of the potential to incur more debt. Borrowing money at 25% for the sake of being able to borrow more money at 25% makes no sense.

There are a ton of people here who have a ton of available credit and accounts, and have high FICOs. It won't drive down your score, as long as you're not screwing up not paying or have incurred a lot of debt, but if you have a lot of unused credit, some creditors may look at that as an issue. That said, most others won't as long as you're paying your credit card bills (preferrably in full).

 

Prepaid and debit cards won't do anything for your credit. Nothing wrong with having them, but you need real credit cards for them to appear on your credit record. Secured cards usually will report.

[cashnocredit]

I've always heard that adding more accounts drives your score down because of the potential to incur more debt. Borrowing money at 25% for the sake of being able to borrow more money at 25% makes no sense.

When I opened a Walmart Discover my FICO increased over 30 points. It was my 5th card.

[tampajm]

Thank you all this was very helpful! One more question; does anyone have a formula for the right ~blend~ of cards? e.g., should I get more credit cards than revolving cards, or does it matter? Also, for CC's should I get both MC and Visa or does that matter?