blbarnes wrote:I recently obtained a Captial One Platinum secured credit card. It has a 300 credit limit. This is my first credit card. I recently applied for a mortgage loan and the broker told me I was 20 points from the FICO score needed to be approved. He suggested I get a credit card and pay on time each month in order to increase my scores.
My statement due is 2/8 each month. My minimum payment due is $25. My question is how much should I charge each month and when. Also what date should I pay each month in order to increase my scores.
Thanks in advance
First off, make sure to pay your current balance in full.
You can charge as much as you want on the card (keep in mind your CL though), but it's recommended not to max it out and ALWAYS pay your balance in full before the due date...have the card report 1-9% of $300 by the statement date...so say for example you put $50 on the card during a particular billing period...by the statement date, make sure only $27 or less reports to the credit bureaus. Then, pay all of that in full by the very latest on the due date for that billing period.
chnceit wrote:Keep total utilization below 10% at all times, get another CC because one will not help improve quickly. Try to put down a higher DP for a higher credit line IMO
OP needs to be pooling cash for mortgage process. Can increase the deposit later, especially as the CL has no impact on FICO at all when managed properly.
Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)Current Score: EQ 648, Wally TU 673, EX 687 (06/15/13)
Goal Score: 680 in all three (01/01/14)
Take the FICO Fitness Challenge
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! 
Last App: 4/5/13 Gardening until July 2014
Revelate wrote:
chnceit wrote:Keep total utilization below 10% at all times, get another CC because one will not help improve quickly. Try to put down a higher DP for a higher credit line IMO
OP needs to be pooling cash for mortgage process. Can increase the deposit later, especially as the CL has no impact on FICO at all when managed properly.
I agree to your statement that CL does not play a role, but having two or multiple TL's reporting with history does. Plus a higher CL will help overall UTI if a higher balance is reported by accident IMO
But your right save your money for a DP on your new house.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.
>> About myFICO
