Reply
New Visitor
Posts: 5
Registered: ‎10-07-2010
0

secured credit card usage

I am in the process of cleaning up some credit report collections and recently applied/approved for 2 secured credit cards, one with a $1450 limit and the other with a $1000 limit.

What percentage of the available limit should I charge and pay in full each month?

My goal is to have collections removed as a condition of payment and have 1 years credit history in order to be able to buy a house with an FHA loan this time next year.

TIA

Epic Contributor
Posts: 23,734
Registered: ‎10-23-2007
0

Re: secured credit card usage

 


watchtower7777 wrote:

I am in the process of cleaning up some credit report collections and recently applied/approved for 2 secured credit cards, one with a $1450 limit and the other with a $1000 limit.

What percentage of the available limit should I charge and pay in full each month?

My goal is to have collections removed as a condition of payment and have 1 years credit history in order to be able to buy a house with an FHA loan this time next year.

TIA


Really up until about 2 months before you want to apply for mortgage you don't have to worry about util.  but if you want to keep util down, I would use the cards as much as you want through the month and then make a payment before the statement cuts to bring it under 9% of CL, then when bill comes, pay the remaining balance.

 

Fico Scores: EQ- 662., TU 684 Barclay, EX 700 (3/21/15)

You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
72 Cards and Counting :smileytongue:
New Visitor
Posts: 5
Registered: ‎10-07-2010
0

Re: secured credit card usage

Uhh....I really don't want to send 2 checks a month....any responsible answers?  What percentage should be used?

Epic Contributor
Posts: 23,734
Registered: ‎10-23-2007
0

Re: secured credit card usage

 


watchtower7777 wrote:

Uhh....I really don't want to send 2 checks a month....any responsible answers?  What percentage should be used?


 

less than 9% of CL if you just want to pay once a month.

do you really still mail checks? I use my banks bill pay, payments are made electronically in 1 day.

Fico Scores: EQ- 662., TU 684 Barclay, EX 700 (3/21/15)

You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
72 Cards and Counting :smileytongue:
Moderator Emerita
Community Leader
Epic Contributor
Posts: 28,098
Registered: ‎04-01-2007
0

Re: secured credit card usage

 


Creditaddict wrote:

 


watchtower7777 wrote:

Uhh....I really don't want to send 2 checks a month....any responsible answers?  What percentage should be used?


 

less than 9% of CL if you just want to pay once a month.

do you really still mail checks? I use my banks bill pay, payments are made electronically in 1 day.


 

+ 1,000,000

 

Mailing checks is downright dangerous these days. You're at the mercy of the postal service, the mail-openers at the bank, the payment-posters at the bank, you name it.

 

I pay online and I screenshot the confirmation and save it. I write down the confirmation number in my checkbook register (yes, I am one of those dinosaurs who faithfully keep a check register, and it's balanced, too), and I save the e-mail payment confirmation.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
New Visitor
Posts: 5
Registered: ‎10-07-2010
0

Re: secured credit card usage

Thanks for your 9% number.

New Visitor
Posts: 5
Registered: ‎10-07-2010
0

Re: secured credit card usage

yes meant online thanks all

Senior Contributor
Posts: 3,197
Registered: ‎01-24-2010
0

Re: secured credit card usage

I have 3 secured credit cards. I often charge them to the 95% limit each month.  I make the minimum payment or more right after the statement cuts.   I pay in full before the due date.

 

The most important thin is never go over limit and never be late.

 

Whne you get with 3 months of mortgage app, then you move to the 9% reporting mode, which will boost your scores.

 

 

 

 

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.