@cookie987 wrote:
So.I've been doing some searching around and found this forum, and well this is my first post.. I'm curious on what is the best way to rebuild my credit so I guess I can give some helpful info. Currently I only have a Capitol One secured with the basic $200 credit limit. I used only about 60% of my credit counting the yearly $29 fee, and my minimum monthly payment came out to be $25 due by 1/14/2013, I paid $30 and plan to pay the rest tomorrow. (which is around $90) My question is, is this a good idea? What is the best way to build my credit? Is there a certain percent of my credit line I should use every month, and when it comes to payment should I pay it in full or should I pay the minimum and will paying early affect it? Also, I've been debating every month increasing my credit line by $40 since I am paid Bi-weekly, will this help me increase my score or am I just tying up more money in the "security deposit"
I'm sorry if I'm confusing..I am trying to do my best learning how the mysterious world of credit works... I'm only 21 and my score in 546 which is horrible.. I REALLY want to bring it up so we can attempt to buy a house some time in 2014, if anyone has any advice I would love to hear it! Also, I'm sorry if I misspelled any words, spelling is one of my worst flaws.
For optimum scoring, let your CC report at 9% or below. Never let it report a 0 balance. You can use it as much as you want just make sure it is paid down to 9% or below before it reports to the CRAs which is normally on the date of the statement or a few days later. Then pay the balance in full before the due date to avoid interest charges.
FICO does not care what your CL is, it is not scored at all. It is the way you manage your account.
Do you have any other types of credit like an installment loan?
You could try applying for another CC to get another TL on your CR. Then time is going to be your friend. Let the accounts age for the next year with ontime payments and your score will start to go up.
