The common saying goes, Get a credit card, pay it all of every month and build your credit… Well guess what, thats not a credit card that is a charge card and will not do a great deal for your FICO score. Your FICO score is composed by the 3 credit bureaus; Equifax, TransUnion and Experian.
Although the FICO formula is quite unknown we know enough to know that
1) Every hard Inquiry (Credit Card Applications) Negative impacts your credit score and remains there for 2 years
a) However every time you get approved for a credit line it builds your credit score
b) you should not have more that 8 inquires on your FICO report
c) According to TransUnion’s Credit Karma the MORE Credit cards you have, the better your credit score will be.
2) Bankruptcy Remains on your credit for 7 years