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New Member
Posts: 6
Registered: ‎12-25-2012
0

New secured credit card

I just procured a secure credit card with a $1000 limit from my bank. I have a 603 fico score with 4 accounts on my report with a zero balance since I paid them all. 

 

This will be the only credit I have avaliable to me since I have no other credit cards or loans out etc. 

 

My questions are:

 

What's the best way I can go about building credit with this card?

 

I planned on:

 

Not maxing it out, spending about half, and then paying a little above the minimum every month until it's paid off and then rince and repeat?

 

 

Also: 

 

What are the next steps, after I build my credit up, in order to build up even more? More credit cards?

 

 

I really appreciate anybody who actually takes the time out to answer my questions. Happy holidays!

Super Contributor
Posts: 6,082
Registered: ‎12-11-2011
0

Re: New secured credit card


Ampzx wrote:

I just procured a secure credit card with a $1000 limit from my bank. I have a 603 fico score with 4 accounts on my report with a zero balance since I paid them all. 

 

This will be the only credit I have avaliable to me since I have no other credit cards or loans out etc. 

 

My questions are:

 

What's the best way I can go about building credit with this card?

 

I planned on:

 

Not maxing it out, spending about half, and then paying a little above the minimum every month until it's paid off and then rince and repeat?

 

 

Also: 

 

What are the next steps, after I build my credit up, in order to build up even more? More credit cards?

 

 

I really appreciate anybody who actually takes the time out to answer my questions. Happy holidays!


Carrying a balance will NOT increase your score. Use the card for your everyday purchases, PIF every month (if you can). 

 

Carrying a balance simply costs you money. 

Valued Contributor
Posts: 1,738
Registered: ‎08-13-2012
0

Re: New secured credit card

goodwill on those 4 account and get them delete before get another cards


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New Member
Posts: 6
Registered: ‎12-25-2012
0

Re: New secured credit card

Perfect, even better. That'll save me money and I have plenty of money to be able to PIF every month. I appreciate the help. Is there a certain amount I shouldn't go over each month?

Highlighted
New Member
Posts: 6
Registered: ‎12-25-2012
0

Re: New secured credit card

I can goodwill on those accounts and get them deleted? I was unaware 

Super Contributor
Posts: 6,082
Registered: ‎12-11-2011
0

Re: New secured credit card

[ Edited ]

Ampzx wrote:

Perfect, even better. That'll save me money and I have plenty of money to be able to PIF every month. I appreciate the help. Is there a certain amount I shouldn't go over each month?


Maxing out your card is usually (on these forums) considered anything above 90%. If you can keep your util under 50% you would be in a good place, however, if you spend $900 on your card, and you pay it off before your statement cuts/card reports to the CRAs, then the balance reported would be $0. 

 

Just use it like you want, and don't max it out and you should be ok. 

 

To your other question, yes you can do something called a "GW" (Goodwill) in which you write a letter to whomever your derog is with, work out some terms (if you owe them money, you can for instance do a PFD (Pay For Deletion))  and ask them to delete it. There is a lot more info on that in the "Rebuilding Your Credit" section. 

New Member
Posts: 6
Registered: ‎12-25-2012
0

Re: New secured credit card

The only problem is none of the accounts have a balance. So I don't know what I can offer them in order for them to delete the account. A couple are just charge off or sold accounts. So I'm not even sure if I have to deal with them anymore since they sold it to someone else. Very confusing this credit stuff is haha Smiley Happy

New Member
Posts: 6
Registered: ‎12-25-2012
0

Re: New secured credit card

So if I want them to report a 0 balance on the card each month, couldn't I just not spend any money on it? Or would that not reflect positivly on my credit and I must use it?

Super Contributor
Posts: 6,082
Registered: ‎12-11-2011
0

Re: New secured credit card

You could spend nothing on it, I would use it a little bit each month though. At least report a balance once, so it shows it has been used, and using it often will often look good to the lender who gave you the card, often opening you up to some of their better products. 

New Member
Posts: 6
Registered: ‎12-25-2012
0

Re: New secured credit card

Thank you very much. Now I have to figure out who to write letters to. It seems a couple of my accoutns have been sold 

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