Cap1 Secured CC Help

[Chris3k2]

I've had a cap1 secured CC for almost a month now. I did some searches and honestly i'm still kind of confused on the steps I should take to help rebuild my credit with it at least as far as the statement dates, due dates and utilization is concerned. My original plan was just to charge gas on the card every month for 20-30 dollars. My limit is $200. My understanding is that 10% utilization is the sweet spot. So if I charge the $30.00 i'll pay $10 before the due date and then wait for the statement to post before paying the remaining amount?

A little information. This is my only credit card I have at the moment. My very first statement date was 04/19/2013. My due date appears to be on the 16th of each month. The first due date I received says: May 16, 2013.

The minimum payment states $0.00  My last posted payment was for the annual fee ($29)

I currently have $26.74 showing as the balance. What do I need to do from here on out. Sorry if this is stupid or sounds dumb but I'm just having a hard time grasping the best way to utilize the Secured CC to increase my score. Thanks for any help provided.

[RTOrockstar]

CapOne usually reports to the bureaus the same day their statement cuts, about 3 days after the bill is due. So long as you are under the 30% sweet spot at that time, you'll get the maximum benefit.

[Richierichdollar]

I dont know your situation but I say the first thing to worry about is the CL. You need to increase that limit as much as possible without over streching yourself. This will do a number of things. I will allow you to charge more money so your utli will be low and when you do apply for a unsecured card the will most likely give you a credit limit of the same or more. First worry about increasing the limit then utli.

[Chris3k2]

thank you very much for both your replies. Does anybody else care to add any tips or info?

[Revelate]

At it's most fundamental: use the card, make your payments.  Never be short, never be late, and never  miss a payment.

When you're just starting, you're looking for two big things:

• Payment history
• Credit history length

Everything else is secondary such as utilization and limits: those can be fixed in the future, the most important thing is to get time working for you as the entire FICO model is underpinned by that.  

Assuming that's your only card, your money would be better spent opening up another secured card or two in order to build your credit profile faster.  Once you have your 2-3 tradelines, then you can worry about raising limits on the C1 card (which is a good idea if you have the money, it's just not a do right now thing unlike getting a few more tradelines) via additional deposits.

[Chris3k2]

well I just got into NFCU for a checking and savings account. So I guess I'll try for their secured card or i'll try for one of the regulars and see if I get that or counteroffer with the secured card. Thanks for the tips everybody.

[jmcmillan]

You really only need to worry about your utiliization if you are applying for credit. I max out my capital one secured card almost every other month. I generally pay it off quickly, but in the past year, there were about 3 months where I had about 95% reporting. Then at the beginning of this month, I decided to apply for unsecured credit from Navy Federal and Amazon. At that time, I made sure all of my open accounts were in check. I paid off my J. Crew and Capital One secured (I have a closed Citi card in which I am under a payment plan, so since this account is reporting a balance, I wanted all other accounts to report $0). I was approved NFCU @ $10,000 and Amazon @ $1,800.

If no one is pulling your credit, and you're not applying for new credit, don't worry about what's reporting. Use your card, and pay it off by the due date.

[Chris3k2]

Well I would like to have at least 2 more CC as this seems to be the best number to have in order to help pull your scores up. So I'm thinking the NFCU card and one other. I did the pre-approved cards on BoA and they had a unsecured card listed instead if the secured one but I'm kinda scared it wasn't real.

[Revelate]

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@Chris3k2 wrote:
Well I would like to have at least 2 more CC as this seems to be the best number to have in order to help pull your scores up. So I'm thinking the NFCU card and one other. I did the pre-approved cards on BoA and they had a unsecured card listed instead if the secured one but I'm kinda scared it wasn't real.

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BOFA's really aggressive right now on their credit cards, and if it came up with an unsecured 1-2-3 Cash Rewards, TAKE IT .  They may counter with the 99/500 card, and that's a good option too for all the same reasons.  Not sure if that one comes with an AF or not, but it's still better than their secured card in many respects.

Also open up a NFCU account, those are your three and you'll be pretty good.

NFCU - just all around goodness

BOFA - excellent starter every day card

Cap One - keep depositing money to this one when you can to boost single limit and future goodness.  

That's pretty much about as good as you can possibly do for a non-student and starting off; an incredibly effective trifecta of complimentary products.

[Chris3k2]

Well I'm not exactly starting off. All my first credit cards have been charged off so my revolving credit looks like I have non right now. Which I guess is good since I'm rebuilding but having any charge offs at all wasn't in my plans. Lol. Thanks for all the great advice.