Seeking guidance with new credit history

[EAJuggalo]

1. Don't do it unless it's going to be someplace you shop regularly or can save you a lot of money.  You probably won't even get the SCT to work since you don't have a FICO score yet.  If you spend a lot of money at Overstock, it saves you some of it and you can get the SCT to work for you, go for it.

2.Usually after the third statement you can get a CLI.  My cards in six months went from $500-$1500-$2000 with Cap1.  You are enrolled in Credit Steps, that is what the increase after 5 on time payments is.  The $200 is the minimum, it could be much more, I recall reading someone went from $500 to $3500 with their Steps increase.  After your Steps increase you'll have to wait six months before you can get another CLI.

You should get online and chat with a CSR and ask if there are any offers on your account.  You should be able to PC your Platinum to a QS. 1.5% cash back and no annual fee.  This is generally available anytime after the second statement posts.

3.My advice would be to have a plan.  Know what cards you want to get and keep long term.  Were I to do the last year over again I would have gotten a Discover Secured when I had money sitting doing nothing.  That card would probably have graduated by now and gotten a nice CLI along the way.  Don't worry too much about utilization unless you are going to be applying for something new in the next month or two.  Utilization has no memory and you'll get all the points back as soon as it's paid off.

[Anonymous]

Before I read your advice about upgrading to the QS I called in to inquire about a CLI (no luck) then inquired about the upgrade and was surprised to find out I did have one. It hasn't updated in my account name wise, but the cashback statistic is there now.

I plan on purchasing everything with this card now, but due to my low limit I may need to payoff the card multiple times throughout the month. No harm there, right?

[Chris679]

Right

[Anonymous]

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@Anonymous wrote:

I plan on purchasing everything with this card now, but due to my low limit I may need to payoff the card multiple times throughout the month. No harm there, right?

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No harm whatsoever.  Plan to make the two payments I mentioned earlier for sure:

       (1)  A few days before the statement prints (pay it down to $5)

       (2)  A few days after the statement prints (pay the balance in full)

And then throughout the month pay the card down any additional number of times you like.

I suppose it is possible that a card issuer might get a little testy with you if you were making lots of tiny payments during the month... e.g. 20 payments of $1-3 each, since each payment probably costs them a bit to process.  But that's someone being silly.  Avoid pointless/silly credit behavior is always a good idea.