New Credit Card

[Involus]

What is the best thing to do with a new card? Should I max it the first month and PIF or util like 30% and PIF? I'm not really sure, hopefully some of you can provide me some insight. What expierences have you guys had that came out to be the best plan of action with a new card, basically?

[John060675]

Use it responsibly.  Buy a tank of gas and then pay it off before the statement closes.  The best thing to do is have your total utilization between 1 and 9 percent (FICO penalizes you for paying all your credit card bills).  If you total utilization on all your cards is already higher than this or within this range, then there is no need to carry a balance on it.  In fact, having too many accounts with a balance is also bad.

[score_building]

use it responsibly and PIF.

[Creditaddict]

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@John060675 wrote:

Use it responsibly.  Buy a tank of gas and then pay it off before the statement closes.  The best thing to do is have your total utilization between 1 and 9 percent (FICO penalizes you for paying all your credit card bills).  If you total utilization on all your cards is already higher than this or within this range, then there is no need to carry a balance on it.  In fact, having too many accounts with a balance is also bad.

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Lets clarify... If you pay all your credit cards to $0 balance before the statement cuts... then yes it looks like your not using credit and it will start to effect you a little bit.  However paying your bill in full when you receive the statement is a good thing... you do not need to revolve a balance month to month and pay interest for Fico.

[tntexans72]

I don't know what your CL is...but if you are looking to get a CLI, I would use the card hard (up to 70% of available credit) than PIF before your statement is dued. Always PIF before your statement is dued and over-time, your lender will increase your CL.