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Hi there… I’m in the process of rebuilding my credit. I have a gas card. Will it help me in rebuilding my credit? Or does it have to be a regular credit card?

sara · Posted: Wed Aug 31, 2011 11:39 pm Post subject:

Hi Janice,

Gas card will definitely help you in rebuilding your credit provided you're not late on payments or default your payments. However, it is true that a regular credit card will be a better option to rebuild your credit.

Take care.

joshuaheckathorn · Posted: Thu Sep 01, 2011 8:21 am Post subject:

There's actually no difference between a gas card and a regular credit card in regards to how it will help you rebuild credit. Keep your credit utilization ratio low, always pay on time and in full, and your FICO scores will improve over time.

chrisgummerson · Posted: Thu Sep 01, 2011 8:58 am Post subject:

You can also obtain a secured credit card and use it regularly for daily expenses. You always want to keep your balances under 40% of credit limit, and if you always pay off the card, the bureaus may report each month that there is no balance, you want to have a balance and use the card. An idle account does nothing. Credit is derived from length accounts have been opened, your ratio between credit limit and balance, lates, the ability to use, manage and pay the debts monthly...Good luck

Noenoeclue_is_me · Joined: 15 Apr 2011 Posts: 45 12.63 Dollars($)

I could be wrong on this, but I had a friend that used to work for a credit company and a law office, and she told me the best way is credit cards, she told me to never get a gas card because that can destroy your credit. Not sure how, but she advised me to stay away from them, so I do.

Not that it matters really at this point, as I type this I have no credit at all. Smile

joshuaheckathorn · Posted: Sun Sep 04, 2011 8:33 am Post subject:

Sorry Noenoeclue, gas cards don't destroy credit. The credit-scoring models can't differentiate between a gas card and a regular credit card- they're both considered revolving lines of credit and will have the same overall effect on your FICO scores.

Noenoeclue_is_me · Joined: 15 Apr 2011 Posts: 45 12.63 Dollars($)

I guess it was more of a referring to having many different credit cards and then getting a gas card on top of that, then if you want to cancel them it will ruin your credit a bit by cancelling the card. I guess that is what she meant.

gmakerley · Posted: Mon Sep 05, 2011 1:23 pm Post subject:

The only credit cards that can destroy one's credit are the ones that people simply cannot handle...and that encompasses every single type of card. If you are not capable of paying debts on time, it doesn't matter what kind of card you've had issued to you...your credit will be in the toilet no matter what.

If you can handle payments on all types of cards, then your credit score will be elevated.

It's truly quite simple.

In our poster's case, I suggest obtaining at least two more lines of trade, so as to build up a credit score. Charge a minmal amount each month that can be paid in full right away, and keep doing that until scores are where you want them.

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