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Established Member
nocreditcard
Posts: 18
Registered: ‎09-25-2008
0

Re: which credit card to apply for

I can't believe it.  Capital One gave me a card.   YEAAAAAAAAAAAAAAAA.

 

 

300.00 limit.  Increase in limit after 3 timely minimum payments.  No interest until Febuary 2009.:smileyvery-happy:

 

 

All this in the middle of a credit crisis.

Valued Contributor
stef37
Posts: 2,205
Registered: ‎12-06-2007
0

Re: which credit card to apply for

Congrats!! :smileyhappy:
Established Member
nocreditcard
Posts: 18
Registered: ‎09-25-2008
0

Re: which credit card to apply for

Does it help or hurt if I make 2 payments a month paying the balance down to zero.

 

 

Is this the way to do it?  I plan to only put gas on it.

 

About 200.00 per  month.

 

 I understand that keeping the balance low shows that more credit is allowed  to me that Im not using and thats a good thing, right. 


Sorry about the elementary questions.  But the last time I used credit cards about 8 years ago, I used them to live on.  And bye stuff I could have lived without.  Just what to use credit this time, not let credit use me.

Valued Contributor
wmarat
Posts: 1,754
Registered: ‎11-03-2007

Re: which credit card to apply for

It does not hurt to pay twice a month.

 

I usually pay once a month, but I know when my statement cut, so I pay on line 5-6 days before statement cuts. If I know that I'll use a card in those 5-6 days, I pay more.

 

FICO likes to see some credit usage, so once in a while let low balance be reported (no more than 9%).

 

Congrats.

IN VINO VERITAS.
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Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: which credit card to apply for


nocreditcard wrote:

Does it help or hurt if I make 2 payments a month paying the balance down to zero.

 

 

Is this the way to do it?  I plan to only put gas on it.

 

About 200.00 per  month.

 

 I understand that keeping the balance low shows that more credit is allowed  to me that Im not using and thats a good thing, right. 


Sorry about the elementary questions.  But the last time I used credit cards about 8 years ago, I used them to live on.  And bye stuff I could have lived without.  Just what to use credit this time, not let credit use me.



Two different things: possible effect on FICO scores, and possible effect on lender.

Your scores won't know or care. All they know is what you have unpaid on (generally) the statement date.

Your lenders probably won't care, IMO. Remember that most of their customers are clueless about all of this, and if they pay by the due date, that's about all they want to see. I pay once a month, a couple of days before the statement drops, and I have never been questioned on this by a creditor, or had any AA as far as I know.

My guess is that paying twice monthly is helpful when your income is locked in battle with your debts. For a while, you might need to split up your payments in this way. But if you're paid every 2 weeks, or twice a month, you might want to move toward a set-up where some bills are paid off that first paycheck, and others from the rest.

Many CCC's will change your dates, but they are used to requests for changed due dates, not statements dates, so you might have a bit of discussion on this.
* 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
Regular Contributor
shreco
Posts: 134
Registered: ‎05-05-2008

Re: which credit card to apply for


nocreditcard wrote:

Does it help or hurt if I make 2 payments a month paying the balance down to zero.

 

 

Is this the way to do it?  I plan to only put gas on it.

 

About 200.00 per  month.

 

 I understand that keeping the balance low shows that more credit is allowed  to me that Im not using and thats a good thing, right. 


Sorry about the elementary questions.  But the last time I used credit cards about 8 years ago, I used them to live on.  And bye stuff I could have lived without.  Just what to use credit this time, not let credit use me.


Actually with a limit like that you will have no choice but to pay early and often to keep the utilization down. I would pay heavy a few days before closing date every month and only let less than $30 report to the bureaus. Then PIF the small remaining balance before due.

 

Allowing $200 a month report would weigh down your FICO showing 66% utilization.

FICO TU 730 EQ 731 EX 706
Established Member
nocreditcard
Posts: 18
Registered: ‎09-25-2008
0

Re: which credit card to apply for

Ok, I should run a balance of no more than 9% or less than 30.00.

 But I'm unclear about how often I should keep the balance at less than 30.00.

 

Should it be all the time or just once in a while maybe 4 or 5 times per year and the rest of the time carry a zero balance?

:mansad:

 

Thank you everyone.

Valued Contributor
wmarat
Posts: 1,754
Registered: ‎11-03-2007

Re: which credit card to apply for

General opinion is that you should not allow balance to be reported on more than 50% of your revolving accounts.

 

I have 15 CC's. I exclude Amex (always PIFed) and 6 store cards, so I have on rotation 8 cards. I let report to 3 at the same time.

 

For instance.

Statement cut on my BOA card with 18k CL on fourth of every month. Let's say I have balance of 3K on this card, so I pay on 1st 1500 and on 5th 1500. This way I show usage on this cart, low util, do not pay financial charges or late fees, get 1-2 FICO points and everybody's happy.

So you should show low util by the time statement cut or when your lender reports to CRA's

IN VINO VERITAS.
Established Member
nocreditcard
Posts: 18
Registered: ‎09-25-2008
0

Re: which credit card to apply for

Got it thanks wmarat

 

Frequent Contributor
goodgirl-badcredit
Posts: 303
Registered: ‎06-04-2008
0

Re: which credit card to apply for

@nocreditcard

what did your reports look like when you applied?


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