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Rebuilding and utilizing new CC

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Busaner
Established Member

Rebuilding and utilizing new CC

I recently got approved for a 4k  NFCU CashRewards. I'm very happy with this approval but am a bit intimidated by spending enough on the card every month. From what I've read, 15-30% utilization is optimal. (Someone please correct me if I've misunderstood this.) I live and work in Korea (not military) so everything I spend is in Korean won. As of now, I just use cash for everything and buy most of my food from street shops because it's so much cheaper. I can use the card at established restaurants or bigger stores for grocery shopping, but that's about it. Between the two i don't see myself spending more that $300 a month.  I wish I could pay my student loans with this, but the lender won't allow it. The card also charges a 1% international fee (or $1.00 whichever is greater).

 

Any advice would be appreciated. Thanks in advance

Message 1 of 4
3 REPLIES 3
guiness56
Epic Contributor

Re: Rebuilding and utilizing new CC

When rebuilding, it is generally advised to let a balance of 9% or under report to the CRAs.  You can spend what you want just let 9% or under report then pay the rest off before the due date so you don't incurr interest rates.

 

20-30% is still kind of high. 

 

If you have more than one CC let all but one report a 0 balance, never all.  Let the last one report 9% or below.  If it is your only card let it report 9% or below.  FICO does not like to see all CC reporting a 0 balance and likes to see you use the credit you have but wisely.

Message 2 of 4
Busaner
Established Member

Re: Rebuilding and utilizing new CC

Thanks Guiness. Should have used the search function more before posting this question.
This is my only card. When you say wait for it to report, do you mean just wait for it to show on my monthly statement before paying off the balance?
Message 3 of 4
guiness56
Epic Contributor

Re: Rebuilding and utilizing new CC

No, wait for it to report to the CRAs showing 9% or below balance.  Then pay off the remainder so you don't have to pay interest.

 

You can call the CCC and find out what day they report to the CRAs.

Message 4 of 4
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