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Established Member
Posts: 38
Registered: ‎07-11-2013
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I just started and I don't know what i'm doing..

[ Edited ]

I have so many questions and I am so very confused about this whole credit card thing. I got my first credit card in february..

 

I got approved for a "college" card: limit is $300

I then got approved for a "partial secured: limit is $500

and I just applied now and got approved again for a third card $500.

 

first one has no annual fee, 2nd one has an annual of $39 and 3rd one has annual of $19.

 

How are we supposed to be using this? I started off maxing the first two out because I was in need but i always paid them off fully and I have never paid interest so far. But now that my finances are stable, I know that i shouldn't utilize them too much. So how am I supposed to be using them? Do I rotate every month using a different card? Is it bad that a card has 0% Utilization when it reports? I was planning on just putting all cards but one in the "sock drawer" and just use one with as best utilization as possible. Im okay with eating the annual fee for one or two years because i am just starting out, i'll close them later.. but I just don't know how to really use them and utilize them correctly to help my credit score.

 

Any tips would be very nice.. But yes after reading some threads I understand never to max them out again.

 

p.s. Am i supposed to carry balances and pay the minimum and interest?? Or is it okay to just pay it in full everytime when it is due.


AMEX BCE: $22000 | nov 2013 ### DISCOVER IT: $6500 | nov 2013
CHASE FREEDOM: $7000 | nov 2013 ### CHASE CSP: $7500 | nov 2013
us bank college: $1000 | feb 2013 ### boa partial secured: $5000 | april 2013
GARDEN TILL: 11/2013 - 3/2015 CAUSE I DONT NEED ANYTHING!
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Registered: ‎02-07-2013
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Re: I just started and I don't know what i'm doing..

[ Edited ]

frankietown wrote:

I have so many questions and I am so very confused about this whole credit card thing. I got my first credit card in february..

 

I got approved for a "college" card: limit is $300

I then got approved for a "partial secured: limit is $500

and I just applied now and got approved again for a third card $500.

 

first one has no annual fee, 2nd one has an annual of $39 and 3rd one has annual of $19.

 

How are we supposed to be using this? I started off maxing the first two out because I was in need but i always paid them off fully and I have never paid interest so far. But now that my finances are stable, I know that i shouldn't utilize them too much. So how am I supposed to be using them? Do I rotate every month using a different card? Is it bad that a card has 0% Utilization when it reports? I was planning on just putting all cards but one in the "sock drawer" and just use one with as best utilization as possible. Im okay with eating the annual fee for one or two years because i am just starting out, i'll close them later.. but I just don't know how to really use them and utilize them correctly to help my credit score.

 

Any tips would be very nice.. But yes after reading some threads I understand never to max them out again.

 

p.s. Am i supposed to carry balances and pay the minimum and interest?? Or is it okay to just pay it in full everytime when it is due.


Welome to the forum

First congarts on your new cards

(1) It's ok to use them all even show max use but if you do pay them off before the statement cut date.

(2) Use all cards but only have one card report a balance between 1-9% (UTL) for max scoring purposes

(3) you don't have to do this but I do...In order to keep all cards active let a different card report the 1-9% each month 

Good luck and keep up the good work

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Frequent Contributor
Posts: 271
Registered: ‎02-10-2013
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Re: I just started and I don't know what i'm doing..

myjourney gave you good advice so I'll just answer your last question. Paying in full is the better financial option, so if you can do that, you should. You do not have to carry balances and pay interest to build good credit; that is just a myth. 

Valued Contributor
Posts: 1,715
Registered: ‎03-07-2013
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Re: I just started and I don't know what i'm doing..

Welcome on board! I'm sure you'll learn plenty by being around Smiley Happy don't worry if u feel a bit confused there's plenty of good folks here to help Smiley Wink


GARDEN GOAL: MARCH 2014
LAST APP: 08/20/2013
---=[NORTHBOUND]=---
Established Member
Posts: 38
Registered: ‎07-11-2013
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Re: I just started and I don't know what i'm doing..

thank you so much everyone!

 

i guess for now i can just use one card a month and let it report 1-9% of its utilization. then rotate the cards every month or every other month. so its perfectly okay to let cards sit? hehe people always scared me about u have to use ur card at least once a month or telling me that a card reporting 0% utilization is bad!

 

my personal goal is sometime next year that i get approved for an amex bce! Smiley Very Happy so ima be a good boy for now and work with what i got!


AMEX BCE: $22000 | nov 2013 ### DISCOVER IT: $6500 | nov 2013
CHASE FREEDOM: $7000 | nov 2013 ### CHASE CSP: $7500 | nov 2013
us bank college: $1000 | feb 2013 ### boa partial secured: $5000 | april 2013
GARDEN TILL: 11/2013 - 3/2015 CAUSE I DONT NEED ANYTHING!
Valued Contributor
Posts: 1,715
Registered: ‎03-07-2013
0

Re: I just started and I don't know what i'm doing..

I'm sure letting it sit for a month is ok Smiley Wink


GARDEN GOAL: MARCH 2014
LAST APP: 08/20/2013
---=[NORTHBOUND]=---
Contributor
Posts: 136
Registered: ‎05-20-2013
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Re: I just started and I don't know what i'm doing..

Which companies are your cards with?

If I were you, I wouldn't SD any cards (sock-drawer, meaning to not use) at this point. I would use all three cards regularly, pay two of them in full each month, and let one report at 1-9% of your CL.

Everyone has a differing opinion, but I believe that you receive CLIs when your CC company sees regular and responsible use of existing credit. No usage = credit not needed, especially when you're building/re-building.


Scores as of 7/28/13: EX.683   TU.688   EQ.???
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Re: I just started and I don't know what i'm doing..


frankietown wrote:

thank you so much everyone!

 

i guess for now i can just use one card a month and let it report 1-9% of its utilization. then rotate the cards every month or every other month. so its perfectly okay to let cards sit? hehe people always scared me about u have to use ur card at least once a month or telling me that a card reporting 0% utilization is bad!

 

my personal goal is sometime next year that i get approved for an amex bce! Smiley Very Happy so ima be a good boy for now and work with what i got!


You can let a card sit for 3 months if you like that's not a problem just make sure to use it so it doesn't get closed for no activity....Buy some gum and set it up to auto pay.

If that's what makes you comfortable until your use to using them all and get the hang of it......That's probably the best way to manage your portfillo right now.

Keep up the good workSmiley Wink

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Moderator
Posts: 27,207
Registered: ‎09-13-2012
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Re: I just started and I don't know what i'm doing..

Welcome to the forum! As usual, myjourney has given excellent advice. Please do not hesitat to ask questions - we are here to help!
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Re: I just started and I don't know what i'm doing..


09Lexie wrote:
Welcome to the forum! As usual, myjourney has given excellent advice. Please do not hesitat to ask questions - we are here to help!

Thanks Lexie just paying it forward for what was given to me.

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