Confused about Utilization

[evsports7]

Im just starting to rebuild/repair my credit. I currently recieved the captial one secured card with a $200.00 limit on it. 

How should i utilize a card with such a small balance. Some say only use 10% which would only be $20.00. Others say use the crap out of it and pay it off multiple times during the month. Which method would I benefit more from (raise scores)? or are these two methods i stated incorrect?

Thank you!

[Anonymous]

Using it a lot will show the credit card company that you need a higher limit to handle all of your purchases.

But, they also want to see that you're responsible with the card. I pretend my card is my debit card, spend what I normally would on my credit card and pay the balance down.

Ask capital one when your first statement will generate, and plan to have your card below 10% used a few days before the statement is generated. 

It only reports once/month.

[Anonymous]

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@evsports7 wrote:

Im just starting to rebuild/repair my credit. I currently recieved the captial one secured card with a $200.00 limit on it. 

How should i utilize a card with such a small balance. Some say only use 10% which would only be $20.00. Others say use the crap out of it and pay it off multiple times during the month. Which method would I benefit more from (raise scores)? or are these two methods i stated incorrect?

Thank you!

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Many people confuse usage and Utilization. They are two completley different things. Usage is how much you charge to your card in a given month. Utilization, is the usage MINUS payments made during the month.

Usage should be as high as reasonably possible (don't buy crap you don't need just for the usage), while Utilization should be low - under 10% percent, ideally.

[evsports7]

Could you give me an example of usage and 10 percent utilization please?

[evsports7]

Thanks alot for the info guys i realy appreciate it.

[Rebuilder2016]

Lets say your statement cuts on the 25the of each month. From the 1st to the 22nd (I like to give myself a few days to ensure no new charges post and payments post) you can spend up to your limit of $200 multiple times and pay multiple payments to ensure your balance is less than $20 when your statement cuts on the 25th.

[Anonymous]

You can use your card as much as you want, whenever you want.

If you're worried about what the credit report says in your utilization percentage, just make sure to pay down your card to 10-20% of your limit before your statement cuts, so the statement balance is really low.

But utilization has no memory so if you let your card go to statement with a high utilization it doesn't matter all that much.  You'll see a possible score dip that month but the following month (or whichever month you have the statement report low utilization again) the score will rebound again.  

[Gondorf]

That's good to know, to pay off balances before cut-off date.  I think I've been unknowingly doing that,

since I pay off balances when my direct deposit hits the bank.  What about the reporting date?  How do

I know when a creditor is reporting to the bureaus versus the cut off date on the account.

Anyway, for what is worth, I am rebuilding.  Got the Cap One secured for $200 about 5 months ago and

just got an unexpected CLI yesterday.  I didn't expect to get anything for at least 13 months.

[Anonymous]

In most cases creditors report to the bureaus a day or several after the statement date. Because the statement is generated, and they have facts to report.

[evsports7]

one last question, if i pay in full before the statement cuts that means i would have 0% utilization correct. Would you recommend not having 0% and just leave a small balance under 10%?