Capital One

[Anonymous]

I just got approved for $500 limit on a capital one. It's my only card so far. Question is... Do I maintain a low balance on that card or do I pay it off in full every month. If I use it in place of my debit card do I wait for the bill to pay it off or pay it off right away? Will it still report a balance to the CRAs if I pay it off before the bill? How does this work?

[Anonymous]

Also, how soon should I try to get another card?

[Anonymous]

You should only charge 30% of your limit to the card and pay it off. I'm also confused on what you should do as well. Currently with my cards I just pay it all off but I've read people say pay it before the statement date rather than the due date. I"m sure someone more knowledgable will clarify. 

[Calistal]

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@Anonymous wrote:
I just got approved for $500 limit on a capital one. It's my only card so far. Question is... Do I maintain a low balance on that card or do I pay it off in full every month. If I use it in place of my debit card do I wait for the bill to pay it off or pay it off right away? Will it still report a balance to the CRAs if I pay it off before the bill? How does this work?

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So - to be clear - you can charge as much on the card as you want - so long as you have the ability to pay it.  Basically - don't buy anything you don't already have the money for.  The general rule of thumb is that you shouldn't post more than 10% of your credit limit.  Preferrably between 1-9% for optimal scoring purposes.  In your case between $1 and $49.  Make sure you know when your statement date falls and pay any charges over that before the statement actually generates.  On mine I make sure its paid the day before the statement generates, just to be safe.   When you get your card (if you don't have it already) get your Cap1 online management up and running and hop on to chat.  They'll easily be able to tell you your statement post date and your due date.    

Oh - and CONGRATS on your new card!! XD

[gdale6]

Grats on your new cards