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watchtower7777
Posts: 5
Registered: ‎10-07-2010
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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

Mega Contributor
Creditaddict
Posts: 19,564
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 657 Cabelas, TU 662 Walmart, EX 699 Wells (07-27-14)
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: Express $300
Over 40 Cards in between :smileytongue:
New Visitor
watchtower7777
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?

Mega Contributor
Creditaddict
Posts: 19,564
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 657 Cabelas, TU 662 Walmart, EX 699 Wells (07-27-14)
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: Express $300
Over 40 Cards in between :smileytongue:
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Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
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
watchtower7777
Posts: 5
Registered: ‎10-07-2010
0

Re: secured credit card usage

Thanks for your 9% number.

New Visitor
watchtower7777
Posts: 5
Registered: ‎10-07-2010
0

Re: secured credit card usage

yes meant online thanks all

Senior Contributor
Wolf3
Posts: 3,198
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.

 

 

 

 


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