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I'm 32 and I just got my first approved credit card! I'm excited, but a little nervous. It's a CapitalOne and there's 0% APR until June 2014, but the variable goes up to 22.9% after that. What are some ways to use this card and suggestions on paying it off (the minimum or entirely before the due date)? I read somewhere that some companies pay more attention to where you spend and how often, when you pay it (on time) and how much? Is any of this true? I've got a bit of an itch to apply for another one, but should I wait? What about a target card? Should I??? How long will it take for this to be a positive impact on my credit score?
@Sdenisew wrote:I'm 32 and I just got my first approved credit card! I'm excited, but a little nervous. It's a CapitalOne and there's 0% APR until June 2014, but the variable goes up to 22.9% after that. What are some ways to use this card and suggestions on paying it off (the minimum or entirely before the due date)? I read somewhere that some companies pay more attention to where you spend and how often, when you pay it (on time) and how much? Is any of this true? I've got a bit of an itch to apply for another one, but should I wait? What about a target card? Should I??? How long will it take for this to be a positive impact on my credit score?
Sdenisew: Slow down! I know it's exciting to get your first card, and you have many questions which I'm very happy to answer! But don't get ahread of yourself
It's very nice that CapOne has a 0% APR, but depending on what your current scores are now and if you have effectively handled your credit boo-boos from the past, you CAN utilize it. What I mean by this is still only put your typical, or short-term payoff, spending on it, while using the line as an "installment". As long as you make payments at least the miminum (preferably over), and pay the whole balance off by June 2014, you won't owe a cent of interest! I'm currently doing this on my JCP card for a bed, and utilizing the 0% on my AMEX to keep more money earning interest in my savings accounts.
If your scores are still low, you still have baddies, and/or if temptation is too great...do NOT utilize the 0%. If you're looking for score improvement sometime soon, it's likely best to use the Cap One card each month and PIF. It'll keep you in the habit, so by the time 0% ends, you'll never be charged that awful 22.9% interest rate
Some companies pay attention to WHERE you spend...but Cap One is the furthest place from them. The only time they may keep track of this is from your "offers", in which they help you save money at certain stores. So don't worry about this!
But you're absolutely right about the amount you spend, and how much you pay down on it. The "when" isn't as crucial, but I'm sure it's a factor. Many credit card issuers like you to swipe and PIF, since this earns them money and gives you a low-risk aura. How it works, not entirely sure, but it's factors that could influence your internal score with the issuer.
Make your way over to the gardening thread! One card is ample enough to begin building your score; if all goes well, 6 statements in for your Cap One card you may apply for another! Definitely search around and see what cards interest you! I might not recommend the Target card, since you can get the debit version and still get 5%...is there another store you like? What about Walmart, so you can get a TU FICO every month? What are your current scores, and where do you spend the most? This could help determine your next goal card!
And the "how long" is the difficult question...could be a month, 6 months, a year...but as long as you use your card wisely, it can only go "up" from here!
Oh, and be sure when your Cap One card reports, it reports 1%-9% of the credit limit. This means if your card is for $1k, you can spend $500 through it in the month, but before the "statement date", pay it down to at the most $90.
Hope that helps best of luck!
I dont know what's in your credit report,but going by your score you should wait till you reach mid 600(wouldn't take long from my personal experience), before you apply for more.Chances are slim you'd be approved for any prime cards...maybe some GE.No reason to rush wasting HP
@Sdenisew wrote:
Thank you. No more baddies for me! I do want to just focus on this one card and feel my way around.
Can you tell us what is on your credit report, both positive and negative, open or closed? Are your scores including the new card reporting? You might want to have one more card or two before gardening. But then again, you might not really qualify for any other cards before gardening.