NEW HERE. NEED ADVISE ON DISCOVER "REBUILDING CREDIT"

[Anonymous]

HI ALL THIS FORUM HAS MADE ME REALISE HOW MUCH CREDIT CAN REALLY AFFECT YOU. 

THAT BEEN SAID. MY CREDIT IS NOT THAT GREAT BUT AM TRYING TO FIX IT. SO I APPLY FOR CAP ONE CREDIT REBUILT CARD. THEY GAVE OFFER A CL OF $200 AND IF I ADD MORE INTO THE DEPOSIT IT WILL INCREASE THE CL. I THOUGTH ABOUT DOING IT BUT NEVER SEND THE MONEY TO THEM. LAST WEEK I APPLY FOR DISCOVER IT AND GOT APPROVED FOR CL$1500. I WAS IN SHOCK, I WAS HOPING FOR AT LEAST $500 SINCE MY CREDIT IS NOT THAT GREAT. BUT I GUESS ILL START FROM THERE AND WORK MY WAY UP. 

WHAT CAN I DO TO IMPROVE MY CREDIT AND HOW CAN I HANDLE MY SNALL BUT GREAT LIMIT SO IT DOESNT AFFET MY CREDIT.? 

[Anonymous]

You should start with obtaining a copy of your credit reports to see what's on there. Without that, it's kind of guess work.

As for the card you have, use it responsibly. Pay it on time, and never pay late. Learn when the statement cuts and make a payment before then. This way your statement will show a responsible balance (1-10%), and then pay the remainder before the due date. You do want to the statement to reflect a balance, but only a small one.

You should probably add another card or two to help, and likely a store card to get a little variety in the file. As to which ones, I'll let the more experienced members chime in on that.

Aside from that, welcome, and fix your caps lock ;-)

[Anonymous]

Thanks DummyDebtor..

Planing on getting my Credit Scores later on. 

So i should make payments before due dates or by due dates. " i get confuse on this part " . should i ask for CLI after a few month or jsut try a new card? 

[Anonymous]

It depends on your usage. Let me lay out two scenarios.

One, let's say you want to keep it as simple as possible. So you find a monthly bill that's about $150 (10% of your credit limit) and charge that. The statement comes out showing $150 due by the X day of the month. So you pay it in full before that date. Repeat every month.

Option two, you just charge everything you can. You check your account 72 hours before the statement prints, and immediately pay it down so there's only $150 left. Then the statement prints, showing $150 due by the X day, and you that in full before the due date.

[Anonymous]

One, let's say you want to keep it as simple as possible. So you find a monthly bill that's about $150 (10% of your credit limit) and charge that. The statement comes out showing $150 due by the X day of the month. So you pay it in full before that date. Repeat every month

Scenario number 1 sounds about right. 

Changes are coming for me on this new coming year. its all for the better of the fam.