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FINALLY - got first CC in mail and I splurged!!

Valued Contributor

Re: FINALLY - got first CC in mail and I splurged!!


User592954 wrote:

I always just max out a new card, go 90% to 95% of CL, but then a few days later it's paid off.

I prefer the new cards to show zero balances with a MAX used almost the full line, the ability to borrow and pay back is IMO way more important than not using CL's.

You max and pay it off for something you were going to buy, you get bonus points if its a good card and in a short time you can double and or quadruple the CL by having maxed it and paid it off.

I know the pack says don't use or use very little, I say, max it and up the CL in a short time and when you apply 6 or 8 months down the road for a new card they see your low CL card is now a high CL card and you have had high balances that were PAID OFF, use if the key to credit, how to build it fast and how to get huge lines at low rates.

 


I don't know about doing that. My cards right now are secure and only way to get CL increase right now is deposit more. So I'm thinking of using a little and deposit funds to raise limits to 2k on each. Once I app for unsecured cards I'll have two with good limits and when I close them I'll deposit the 4k into rainy day savings account.


Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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Message 11 of 14
Valued Contributor

Re: FINALLY - got first CC in mail and I splurged!!


User592954 wrote:

I always just max out a new card, go 90% to 95% of CL, but then a few days later it's paid off.

I prefer the new cards to show zero balances with a MAX used almost the full line, the ability to borrow and pay back is IMO way more important than not using CL's.

You max and pay it off for something you were going to buy, you get bonus points if its a good card and in a short time you can double and or quadruple the CL by having maxed it and paid it off.

I know the pack says don't use or use very little, I say, max it and up the CL in a short time and when you apply 6 or 8 months down the road for a new card they see your low CL card is now a high CL card and you have had high balances that were PAID OFF, use if the key to credit, how to build it fast and how to get huge lines at low rates.

 


This is good advice, or bad advice depending on how you look at it.

 

I am not going with the pack; but I will say you are on a rebuilding forum. If you were talking about straight building credit, I would give your idea some leverage.

 

But for credit rebuilders, sometimes you have to think of it kind of like how alchoholics would handle it. I am not comparing them in severity, but maxing out credit cards to a rebuilder who just struggled for years with credit card debt can be the equivlent of giving an alcholic a bottle of booze.

 

I hear you on the limit increases and what not, but the bottom line is, baby steps for most of us on this forum.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Message 12 of 14
Established Contributor

Re: FINALLY - got first CC in mail and I splurged!!

I agree with rckstrscott.

-Rebuilding with CapOne Cash: $1.5k, NFCU cashRewards $8.5K, NavCheck $5K, Wal-Mart: $1.1K, Sam's: $1.2K, Amazon: $1.9K, Apple Barclay: $3K, Haverty's: $1.5K, GE capital: $5K, Sears: $250(AU), PP MC:$1.5K, CareCredit:$3K (closed 1st home 05/08/13)
Starting Score: 492-TU04, 480-EX FICO V2, 467-EQ Beacon 5 (Via Mortgage PreQual March '12)
Current Score: EX,EQ,TU (lender pull): 652, 659, 689, Walmart TU FICO: 691 (05/13)
Goal Score: 700

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Message 13 of 14
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New Member

Re: FINALLY - got first CC in mail and I splurged!!

I totally agree with this method. I use my credit card for almost anything I would normally buy anyway, (gained lots of cash back this way) I just pay it off once the transaction post to my account. I also make sure NOT to have a balance higher than 1 to 5% when my statement closed date is approaching.

Message 14 of 14