Not understanding cc utilization trick

[Anonymous]

Scrap the open sky secured cc idea, instead go to your local credit union or see if your eligible for dcu, nfcu or penfed and get a secured card with them. Even look into usaa, I know they are known for insurance but they offer great credit products and even have online banking. With credit unions you are more likely to pc to unsecured cc within 6-12 months at better rates than other secured approaches. GL on your future credit repair. Don't forget to search this forum for the mentioned CU's

[Anonymous]

The best score will be with only 1 card reporting a balance at 1%. If you have more than one card, the others should report a 0 balance. 

Have you made a new charge to your card since you received the last statement? If so, simply pay the outstanding balance leaving $3 on the account.

if you have not charged anything to your card since you received the statement, pay the statement balance in full and then go and charge something for about $3 bucks. 

You our don't have to wait u til the 6th. You can do it now.

[Anonymous]

I'll try out some credit unions. So it's a 1% balance now lol not 5??? Will that make a difference?? I only have one card so just charge it one percent?

[Anonymous]

Yes! You will get the best score possible for your current situation reporting only 1 card at 1%.

[Anonymous]

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@Anonymous wrote:
I'll try out some credit unions. So it's a 1% balance now lol not 5??? Will that make a difference?? I only have one card so just charge it one percent?

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The "perfect" amount seems to vary depending on a persons complete credit profile, and can only be discovered by experimenting over time with varying the percentages.. Anything under 10% is good, and there will be a particular number between 1% and 9% that will yeild a few "extra" points.

You do need to get a couple more accounts established for good growth. Before looking at more secured accounts, I would suggest apping for an unsecured Capital One card, either the platinum card or the QS1 card. If you get denied for that, THEN go for a second secured card as suggested above. 

[Anonymous]

Couldn't get approved for an unsecured so I have to get another secured either opensKY or a credit union. I also have fingerhut if that helps haha

[Anonymous]

Don't be intimidated by a credit union, trust me most of us have been through this same path you're taking. So don't do the opensky cc, to get the best Apr and chance at building a good relationship with a "bank" is to go with a credit union. Once you establish good habits with them, it'll open you up to better rates, offers for credit and loans but you have to be patient and take it step by step. I'm still working on my credit, just recent in July of 2013 I hit rock bottom and was floored after seeing a 495 as my score!??! Ouch, but after clearing up some baddies and responsible use of my cc's I am up to 630 across all 3 and thriving to get to at least 750 across all 3. It just takes hard work, dedication and time.....you'll get there and you'll be giving advise to someone here in the near future

[Anonymous]

So are you suggesting bank with them for a while and then get a credit card?

[gdale6]

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@Anonymous wrote:
So are you suggesting bank with them for a while and then get a credit card?

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Your Fingerhut will help, get your secured card from someone like OpenSky who runs no credit check and begin your relationship with a local CU who is willing to work with you in your rebuiilding efforts. Some CUs will give you a small unsecured when you open, if they wont then try for secured card, if they dont have that or say no on it then bank with them for awhile (6 mo) to establish a history with them and try again.

[Anonymous]

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@seruby wrote:

Correct!   See, you've got it.     So what you'll do on your next statement, since you're statement balance will be $15, is pay that $15 immediately (like the 11th or 12th - basically once you see it the due date change online) so it's out of the way and you won't have to worry about interest or being late.   Again, this is just something I do to be safe, but not really required.  Then on July 6th, pay your current balance down to $15 just like you're going to do on June 6th.

And remember, you don't have to stay at 5%.   Just keep it under 10%.  Having a steady number is good though since it helps with budgeting.

Alright tomorrow is the big day! I am going to pay it down to one percent so the statement on the 9th will reflect a 1percent balance! then I can just pay off the one percent on the 10th or 11th and use the card as normal right??? Or when can I use the card like normal?