For the majority of people seeking credit repair, a third credit card is a somewhat needless addition to their pool of debt. Why add more when the point is to consolidate what is already there. The answer is a bit more nuanced than what is expected. An additional card can potentially be helpful in a few ways, but it needs to be responsibly utilized.
What is an additional card anyway? If a customer already has three credit cards, then a fourth. If a customer already has five cards, then a sixth, and so on. The point is the existence of another credit card to act as a buffer or tool towards positive credit counseling in Melbourne FL and credit restoration.
How Could This Work?
An additional card should ideally remain empty or be used sparingly. The reason is to help buffer the high balances that already exist on the other credit cards. If a user is able to have a card, maintain a low balance, and prove they can sustain this for a period of time, it will be positively reflected in a credit score. This extra card is used sparingly, while the other balances are actively being paid down to zero. This maintains the use of one card while keeping a safe credit source open.
The card could also be kept empty and only used in the case of an emergency. This could include a car accident and repair, a medical situation, or a lapse in a single bill. All in all, an empty card could be helpful for the sake of an emergency. It may not do a whole lot in the long run in regards restoring credit, but it can keep an emergency from being financially catastrophic. It avoids pitfalls, such as using a payday loan or simply not having the funds readily available at all.
Ideally, an extra card is just not necessary. It is not the finest answer for Credit Counseling in Melbourne FL. But, it does open up a potential channel. It helps in keeping a credit total balance lower than it would be otherwise and helps as a tool for a potential emergency. Get more information about this strategy, and others, when receiving financial assistance.
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