So I've posted on here a little bit about my credit. I'm a 20 year old college student with practically no credit history aside from my $1700 student loan I took out towards the end of 2008. Since then any cc I have applied for has resulted in denial.
In the past two months I applied for and was approved for both a CAP1 Secured CC ($251 Limit) and a Discover More CC ($500 Limit). Before having either of these on my report my TU score was 669 on March 13th of this year. I opted to buy my current TU score from this sight (on a curiosity impulse, I admit) and I was delighted to see that my score as of today is now 705!! The current report only shows my new CAP1 card, not the discover.
Following the advice on this forum, I was careful to have a 9% balance on the CAP1 cc when the statement generated, and as promised the TU report I just pulled reflects exactly that: a 9% R-UTIL. Yay!!!!
I actually just got the discover card today so that is why it was not on the current report. I do however expect it to show up soon. I am concerned that once it reports there will be a decline in my score due to having two new accounts, but I will just garden for awhile and see what happens. This is my plan:
1. I will use the CAP1 card, but since it has the lower limit, I will make sure to pay it completely off before the statement cuts so that it reports a zero balance.
2. I will use the DISC card and will make sure that when the statement cuts, a 9% balance is reflected and therefore reported. (The $500 limit gives me a little more to work with)
So I will always have the DISC report at 9% and the CAP1 at 0%. Good plan right?
I also plan to start paying down my student loan next month, just to decrease the balance and begin so show some payment history. It has been deferred since I opened it in 2008.
Thanks to everyone for their help! Thumbs up for credit responsibility!.
You're off to a great start. You've got a good head on your shoulders. Keep up the good work.
I would use the discover for everything and pay it off even multiple times a month. Discover likes heavy usage and will give you frequent CLIs if you do. I wouldn't worry about using the Cap1 as much, just once every couple of months to keep it active.