12-09-2011 06:47 PM
I am still new to credit and have only have my first card open for about 6 months and have had student loans are about the same time. I have never kept a balance on my card and this month they increased my credit limit from $500 to $750. I've read you are supposed to use a certain percentage of your available credit, but will it have a negative affect if I still only charge a very small amount on the card(approximately $120) each month? If it makes a difference I have a capital one card. Thanks
12-09-2011 07:09 PM
The more you use the card and and pay it off, the better your payment history will look, and with most CCC's (not Cap1 tho) they will usually reward you for using your card heavily by giving you CLI's every 6 months, but not Cap1 they rarely, and I mean rarely give CLI's
Run as much thru the card as you want, just be sure to pay almost all of the balance a day or two before the due date and leave a $15 balance to report to the CRA's, this way you will show some util, which is better than 0% util. And 1 day after the statement cuts, pay that remaining 15.
You just don't want to charge 735 on a card with a 750CL and pay just the minimum due and let the card report at 97% util every month, that's not good.
12-09-2011 07:52 PM
Adding to Mustang's excellent advice -- you also don't want to carry a balance. It does not help your credit history at all, and it will cost you useless money.
12-09-2011 09:28 PM
As Mustang stated above, leave a very small balance reporting for utlization. Much better than letting it report as zero each month for optimal fico scoring.
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