How to use Cap1 wisely?

[Anonymous]

My hubby is rebuilding and was approved for $300 capital one card. What is the best way to use it? I know the 30% rule, but as far as "activity". Should he use then PIF before statement cuts? Or let the statement cut with a small balance? Thanks!!!

[Anonymous]

I always paid in advance to let the statement cut some small < 5% balance.

[Anonymous]

Dont pay attention to the 30% deal. the absolute best way to build and maintain a high score is to keep 10% or less balance but NOT a $0 balance. if you research - you will see the highest credit scoring people will always do this. Per a mortgage lender - thats the best to do... 

So if you have $300 limit... you'll wanna always pay it down to 10-15%. $300 X 10% = $30. so use it and before the statement date, Pay down to only having $20-30 as the balance... 

use this.. it'll help. http://bettercreditblog.org/credit-card-balance-limit-ratio-calculator/

[Anonymous]

If you mean use it with the intent to grow the card, lots of transactions followed by PIF should be his goal.  With a low limit such as $300, I'd recommend he basically pay off the card every time he uses it give or take.  Basically treat it like a debit card with one extra step where you go online and pay it from your bank account.  Typically the first CLI opportunity with CO is at 6 months, so if he uses this strategy I would think he'd get a bump up likely to $800-$1000 at the 6 month mark.  If he's using a heavy spend (relative to the card), say $600/mo, there's a chance he could receive an even bigger CLI when the time comes.

Heavy use followed by PIF is going to be the best rule of thumb 99% of the time.

[Anonymous]

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@Anonymous wrote:

Dont pay attention to the 30% deal. the absolute best way to build and maintain a high score is to keep 10% or less balance but NOT a $0 balance. if you research - you will see the highest credit scoring people will always do this. Per a mortgage lender - thats the best to do... 

So if you have $300 limit... you'll wanna always pay it down to 10-15%. $300 X 10% = $30. so use it and before the statement date, Pay down to only having $20-30 as the balance... 

use this.. it'll help. http://bettercreditblog.org/credit-card-balance-limit-ratio-calculator/

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Its really not necessary to do this each and every month. UTI% has no memory, its far more convenient to just PIF and worry about leaving a small amount on the statement for preparing to app for more credit, an auto loan or a mortgage. Micromanaging UTI month to month is a complete waste of time and energy.

[Anonymous]

As that is true - I prefer micromanaging how i spend and payoff each card. Im just replying to the individual as to what my lender/brother's wife have told me and do. 

[Anonymous]

In the case of the OP, I wouldn't worry about utilization percentage reported.  If you are following a heavy spend / PIF pattern and are making payments frequently as I suggested it honestly won't really matter when it comes to utilization and growing the card.