Credit Card Utilization?

[Anonymous]

Me and my husband are wanting to buy a house however, I need to repairand rebuild my credit from my previous marriage. While he is just getting started on establishing his. This is really a question abput his credit card. He went with a capital one secured mastercard. He has a credit limit of $201. Now the question is simce his limit is so low, we will have hard time keeping his utilization low at first. So, what I am wondering is as long as we pay it off, we plan on paying every pay check which is twice a month. Also I have heard of capital one upping the card limit on their own after responsible use is this true

[Anonymous]

Since they gave you only a 200 dollar credit limit, I personally would get close to the limit every month and pay it off in full every month for the first six months or so.  This would probably motivate the card issuer to bump up your limit.  Once you get a decent bump, I would go ahead and try to keep your utilization to under 20 percent a month.  Most important thing is to pay your bill off in full every month. Don't carry a balance!

[-Wade-]

---

@Anonymous wrote:

Me and my husband are wanting to buy a house however, I need to repairand rebuild my credit from my previous marriage. While he is just getting started on establishing his. This is really a question abput his credit card. He went with a capital one secured mastercard. He has a credit limit of $201. Now the question is simce his limit is so low, we will have hard time keeping his utilization low at first. So, what I am wondering is as long as we pay it off, we plan on paying every pay check which is twice a month. Also I have heard of capital one upping the card limit on their own after responsible use is this true

---

The Util. only matters when it reports to the CB's . Know when that it and keep it low when it reports

[Chris679]

Don't know how much luck you will have with CLI on a secured card. I would just set it to auto PIF and put a couple monthly bills on autopay with it. Reevaluate in 6 months or so.

[Anonymous]

---

@Chris679 wrote:
Don't know how much luck you will have with CLI on a secured card. I would just set it to auto PIF and put a couple monthly bills on autopay with it. Reevaluate in 6 months or so.

---

Capital One will take their secured card up to $3,000 limit over time.  

From my reading the OP post and her other posts, I actually think that she is jumping the gun.  Rebuilding credit, she really doesn't have to worry about utilizations and balances and paid in full yet.  However, knowing what to do is good, but her first goal is to remove or reconcile the bad guys on her credit report.  That needs to be the first priority.  The Cap One card should be used to buy a stick of gum each month and paid off...

[takeshi74]

---

@Anonymous wrote:

So, what I am wondering is as long as we pay it off, we plan on paying every pay check which is twice a month.

---

As stated above, be aware of when the account reports.

---

@Anonymous wrote:

Rebuilding credit, she really doesn't have to worry about utilizations

---

Utilization is always a concern.  It does not cease to be a risk factor for rebuilders.  What a rebuilder doesn't have to worry about is optimizing utilization (allowing only one balance to report at 10% or less) but rebuilders should still be mindful of the 30% max general recommendation.  Short term high utilization isn't an issue but prolonged high utilization can be.

[Anonymous]

This post wasn't about my credit as much as my husbands. He has no debt and all this debt was mine before I married him. So we are working on Establishing his credit and repairing mine.