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First Credit Card In a Long time-Question

Regular Contributor

First Credit Card In a Long time-Question

I've had credit cards in the past.  This was way before I knew about this place or was even concerned with how the "credit thing" works.  I have recently been approved for a Target Card.  I don't know what, and I don't know for how much.  Doesn't really matter, I was excited just to get that.  I have read and understand I should have 1  to 9 percent utilization.  But what does that mean exactly?  I want to use my card to try and help raise my score.  Does it mean never use more than 9% of the CL?  Or does it mean, pay down to 9% by the time the CC updates?  I see some people PIF, others PIF and then charge a little something before it updates.  Some people it looks like use and then pay enough to reduce it to 1-9%.  What is the best thing to do  to show creditors I can be responsible and at the same time make the most out of it to improve my score?  Thanks in advance.
Message 1 of 4
3 REPLIES
Established Contributor

Re: First Credit Card In a Long time-Question

Make sure your uti is paid to below 10% BEFORE your statement date... And all will be well for you in the FICO Kingdom... Smiley Wink
 
Good Luck and Congratulations!
 
Rob
Message 2 of 4
Regular Contributor

Re: First Credit Card In a Long time-Question



FICO_Focused wrote:
Make sure your uti is paid to below 10% BEFORE your statement date... And all will be well for you in the FICO Kingdom... Smiley Wink
 
Good Luck and Congratulations!
 
Rob



So, for instance, if it turns out to be a $200 card.  I can charge, lets say, $50.  Before statement comes out, I pay $45 online.  Leaving $5, therefore showing 5% untilization, right?  If I PIF before statement date, it will not appear as if I have used at all?  What will that TL on my CR look like?
Message 3 of 4
Established Contributor

Re: First Credit Card In a Long time-Question

in reality you don't need  a "prefect" score all the time just when you plan to using it. like this month one cards statement was 10% it would of cost only $29 to get it down to 9% but that's giving their money 3 weeks before I have to. the name of the game is" Milk the Bank", that's my ultimate goal.
 
Next month I'm apply for discover card so I'm making sure my 3K card balance's doesn't excede $270, and if that requires I pay it down ealier I will
People say "Only apply for credit you NEED"

I say "apply for credit you have PRATICAL use of"

I don't have AMEX card because I don't want a card that suffers from PMS
Message 4 of 4