How do I handle these new credit cards?

[shalane85]

I need some advice on how to manage my cards moving forward. I am totally in the rebuilding phase, 6 months out of a Ch 13 (2nd BK ) and I am really trying to navigate these cards to improve my profile. Recently I was approved for a few new cards and I received a CLI on my QS1 so I think now I need to garden and manage what I currently have. My tactic for the QS1 was to use it heavy and pay it off monthly. My SL was only 500, so I maxed it out 3-4 times per month, paying it off every time. My new limit is now 3k. Since this is likely a factor in why I recieved the CLI I am assuming I should continue this trend. It has been years since I have had credit cards so I am totally lost. I have the following cards: 

QS1 $3000

Capital One secured $200

FIngerht $600

Amazon (new) $800

TJMaxx (new) $300

Wamart (new) $250

Should I carry a small balance, PIF, leave 10% on the card?? My scores are currently 620 and I really want to get that number higher. I appreciate the feedback. I

[Anonymous]

For optimal scoring you need to have only 1 card reporting a balance between 1-9% of that cards limit. However, UTI (utilization) has no memory so if you have more reporting balances you don't need to stress about it unless you're planning to get a mortgage or auto loan. But don't let too much of a balance carry if possible to avoid interest fees and the balances getting out of hand. And try to keep less than half of your cards reporting a balance.

[Anonymous]

---

@shalane85 wrote:

I need some advice on how to manage my cards moving forward. I am totally in the rebuilding phase, 6 months out of a Ch 13 (2nd BK ) and I am really trying to navigate these cards to improve my profile. Recently I was approved for a few new cards and I received a CLI on my QS1 so I think now I need to garden and manage what I currently have. My tactic for the QS1 was to use it heavy and pay it off monthly. My SL was only 500, so I maxed it out 3-4 times per month, paying it off every time. My new limit is now 3k. Since this is likely a factor in why I recieved the CLI I am assuming I should continue this trend. It has been years since I have had credit cards so I am totally lost. I have the following cards: 

QS1 $3000

Capital One secured $200

FIngerht $600

Amazon (new) $800

TJMaxx (new) $300

Wamart (new) $250

Should I carry a small balance, PIF, leave 10% on the card?? My scores are currently 620 and I really want to get that number higher. I appreciate the feedback. I

---

I would use each card if you want but PIF them and only let 1-9 percent report on ONE card all the rest should be zero. Also when your TU score gets around 650 call credit solutions to get a CLI on walmart and amazon. 

[RonM21]

I like both suggestions and think you already have a nice thing going with how much you are spending, then paying off. Keep doing that as well as only carrying a balance each month on 1 card below 10%.

[Anonymous]

Heavy use for a month or two with PIFs is usually a good tactic just prior to requesting a CLI.  Since it worked for you with your one card, I'd try this with your others as well.  The downside of having low limit cards is of course the limited ability to use them, but the upside is that it's very easy to show heavy use (max) on them.  I'd try for a few CLI's in the upcoming months on your other cards just to give yourself and your overall credit utilization some breathing room.

[Anonymous]

How do you let 1-9% "report"? Do you pay it at a certain time? And for the others, do you pay them earlier so they won't "report"?

[Anonymous]

You do that by paying before the statement cuts (making sure that pay at least the minimum amount due before the due date). Cap1 statements (for hubby and I anyway) cut 3 days after the due date, Synchrony (Walmart and Amazon) cut 8 days after the due date. Don't remember for Fingerhut and have no clue for TJMaxx

[Anonymous]

What I have noticed is that my Cap1 cards report on the day that my statement is cut. So inorder to allow 1-9% to report, you don't pay that balance in full.

Someone posted that if you pay more then your statement balance in before the payment due date (even in you carry a balance after your payment), you would not get interest charged. I have yet to try this out.

[Anonymous]

I am so confused.

[Anonymous]

Say your QS1 due date is 7/1. Make sure you make a payment before then. The statement date would be 7/4. If you want that card to show a zero balance then you'd pay any balance before 7/4. If you want it to report a 10% balance you'd pay all but 300 by the 4th. The other cards would work the same way. The statement date will be on your statements. Did that help any?