Questions on utilization and credit scoring

[Anonymous]

I have a Capital One secured credit card with a $200 limit.

I tried very hard in the beginning (since March 2014) to make sure that I didn't charge more than the 30% utilization ($67)

I have been unsuccessful at doing so. My current bill is $102.00.  I have always paid all but $5.00 each statement and one month, accidentally paid even more than what was owed, resulting in a refund check from CO.

So my credit score in May was 580. It's now 570.  I am trying to get it to 640 by March for home ownership.  

Any suggestions on my situation for correct usage on a card with $200 and how they report to 3 bureaus?? Is a 640 attainable by March charging only $20.00/month?

[destine2grow]

You can charge up to your full CL, however you will have to send in a payment before the statement close to only allow utilization to report 30% or below.

Is this your only cc? If so I would only allow about 10% to report. You can find out when your statement close by calling Cap1.

[Creditaddict]

if this is your only credit card that's not enough for home ownership... you need 3 credit accounts usually.

and like other poster stated, doesn't matter what you charge but you need less than $20 to report on your statement... if it's to complicated to pay multiple times a month just charge like itunes or netflix or something to the card and don't use it otherwise.

[coldnmn]

Seeing as you have over 6 months with your secured card I think you may have a good chance getting an unsecured Quicksilver one from Cap1. A second card would definitely help you. Just my opinion YMMV.

[Anonymous]

I have an equifax.com membership & I just used their score calculator to get these results:

My current score on their site is 634 & I have 0% credit card utilization.  I was reading about util% on myFico so I did some testing using the simulator.  So basically if my credit card utilization went from 0% to 1% supposedly my Equifax.com FAKO score would go up from +64 from 634 to 698.

Util   Score
0%   634
1%   698
5%   694
10% 689
15% 684
20% 679
40% 659
50% 649
60% 639
65% 634

[taxi818]

Well your example is good  . and this is why most of us say. keep utilization between 1-9 percent. on 1 card only. and your score is optimal. however.for the op. Dont make the mistake between utilization that is reported and using your card.

even low limit card like that. high usage does not affect your score. just the reported amount to the credit bureaus.

Example. 200 dollar card. use it as you like. charge 150. 180. does not matter.

just when it comes time to pay. pay it down to say. 10 bucks. only and you will be good every time. as that is only 5 percent usage on your credit report. and that alone is what is affecting your score. so  don't over think. just use it. that is why you have it. it is showing your responsibility when you pay. not from the things you buy. hope you got it now?

[Anonymous]

I have the same card since May 2014 and I was worried and panic the same way like you did. I was nervouse about spending to much and confushing between utilization  and being report.  I started with 200$ CL as well, I even make mulitiple deposit to get my CL to 1k so that way I can try to use my card less then 30% but I was wrong.

My understanding ( Guys please correct me if im wrong) for sample, my 1K CL I can charge as much as 800-900$ but before my due date and my report date I would paid it down to $1-$20 to keep my utilization below 9%.

Also I only have my card since May..do I wait for 6 month or 12month to apply for unsecured card from Capital one? I only have 1 card as well trying to rebuild my credit.

[taxi818]

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@Anonymous wrote:

I have the same card since May 2014 and I was worried and panic the same way like you did. I was nervouse about spending to much and confushing between utilization  and being report.  I started with 200$ CL as well, I even make mulitiple deposit to get my CL to 1k so that way I can try to use my card less then 30% but I was wrong.

My understanding ( Guys please correct me if im wrong) for sample, my 1K CL I can charge as much as 800-900$ but before my due date and my report date I would paid it down to $1-$20 to keep my utilization below 9%.

Also I only have my card since May..do I wait for 6 month or 12month to apply for unsecured card from Capital one? I only have 1 card as well trying to rebuild my credit.

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Yes you are 100 percent correct. For best results with cap 1. Google   Pre approved if it says congratulation. Jump on it. You are ready for unsecured  but don't close secured when you get it. As they are helping your credit together. A yeR ago. I was where you both are.  But 13 cards later.  Score is stronger than ever. Went prime time. But still have my cap 1 secured. Even I don't use it not. A donut once every 2 months.

[Anonymous]

IS this a trick? I should google it and apply for "pre-approve" once it get pre-approve just jump on it? I dont want any more of inquiries in my report, I know cap 1 does hard pull on it.

[taxi818]

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@Anonymous wrote:

IS this a trick? I should google it and apply for "pre-approve" once it get pre-approve just jump on it? I dont want any more of inquiries in my report, I know cap 1 does hard pull on it.

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No it is not a trick. Best to get unsecured starting. You are listening to all hear. Hp is not a bad thing. Just when you get too many. Cap 1 gave me my start. Now in 9 months. Got. Discover it. Amex. Barclays.  Citi bank. List goes on and on.  I got 9 hard pulls. But 5 are histor from score at least.  In December. So it's no big deal. If it's says congrats. Jump on it. No hp for pre approval. That is sp. they even tell you. It will not affect your credit.