05-12-2010 06:44 PM
I have 2 secured credit cards, Applied and Public Savings. Applied Bank reports to TU and EX. Public Savings reports to TU, EX, EQ. Both have $200 limits. My questions are 1) What should I keep the uti on each card? 2) Do I need to have higher limits? I am trying to have higher credit score .
05-12-2010 09:35 PM - edited 05-12-2010 09:56 PM
Those are very low limits. Low limits do not inspire confidence and lead to more low limits.
I would increase the limit as much as you can afford on the Public Savings Bank card. You can keep this card for a long time with no annual fee.
The fees on the Applied card and the no grace period make this card very expensive, so you should drop it when you get something better.
What & When is your next applicaiton?
05-13-2010 12:25 PM
In the building stages, use your cards as much as you comfortably can. The most important thing is never be late, never go over limit. You are trying to build a history of responsible use.
You should plan to add some better cards to your portfolio over time. Plan ahead and whenever you are applying credit, your utilization should be low for best FICO at that time.
Since the Applied Bank, has no grace period, I would charge it up for a few days and then make a payment to reducle interest charges. I would use the PSB as my main card and PIF by due date.
I started rebuilding with 2 secured cards last fall (PSB and HSBC) , I plan to apply for 1 new card every 6 months or so.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.