topic Re: Let's get specific in Credit Cards

Let's get specific

Anonymous — Fri, 15 Jan 2016 01:05:41 GMT

I'm rebuilding after the death of my precious Husband.

Just got a secured CC

cycle date is the 3rd of month

due date is 28th of month

i funded it with $1,100.00

please give me specific instructions on how to use it

what date to pay it

Etc

i truly appreciate sound advice

thank you

Re: Let's get specific

Anonymous — Fri, 15 Jan 2016 01:38:57 GMT

If by cycle date you mean the date the statement cuts, pay it down to a few dollars before that date. Letting a little bit report each month is better for your score growth than letting zero report.

Re: Let's get specific

Anonymous — Fri, 15 Jan 2016 02:03:56 GMT

Thank you !

Re: Let's get specific

TrialByFire — Fri, 15 Jan 2016 02:45:22 GMT

Very sorry for your loss...stop making charges about the 25th and resume the 3rd. As captool said, pay all but a couple dollars by the due date, leaving $100 or less. After statement cuts on the 3rd, pay off that balance.

**For example, you use your card regularly throughout the month. Don't swipe your card anymore starting the 25th of the month (possibly earlier depending on how fast transactions post). This will allow any pending charges to post. Let's say your balance on January 28th when you make your payment is $500...make a payment of at least $400. This leaves your new balance $100, or 9% of your available CL. Assuming this is your only CC, this scenario will show responsible monthly usage on your reports. So your statement cuts on February 3rd leaving your balance $100 and due February 28th. Go ahead and pay the $100 to ensure the original remaining balance is wiped out and you avoid interest charges. Begin making regular purchases again. Rinse and repeat.**

Consider using it like a debit card. If you have online banking, you could open another checking account and name it "credit card pay acct" or something similar. Keep receipts of your daily transactions and every night transfer that amount over from your main acct to your "cc pay acct". Then towards the time when your bill is due, voilà! Money is there! Also consider setting up auto pay on that card if the option is available for at least the minimum due.This is what I do, may not be best for you but just an idea

**Edited for attempted clarity**

Re: Let's get specific

Anonymous — Fri, 15 Jan 2016 02:24:34 GMT

@TrialByFire wrote:
Very sorry for your loss...stop making charges about the 25th and resume the 3rd. As captool said, pay all but a couple dollars by the due date, leaving $100 or less. After statement cuts on the 3rd, pay off that balance.

Consider using it like a debit card. If you have online banking, you could open another checking account and name it "credit card pay acct" or something similar. Keep receipts of your daily transactions and every night transfer that amount over from your main acct to your "cc pay acct". Then towards the time when your bill is due, voilà! Money is there! Also consider setting up auto pay on that card if the option is available for at least the minimum due.This is what I do, may not be best for you but just an idea

I'm not freaking sure if it's the song that has been stuck in my head ALL FREAKING DAY that doesn't make me understand your reply OR, I simply don't understand anything you meant.

Re: Let's get specific

TrialByFire — Fri, 15 Jan 2016 02:31:41 GMT

Out of curiosity, what song is it lol

Is there anything in particular I can reiterate or clarify? I was meaning to respond to OPs question of how to use the card, using OP's dates of reference (i.e. Due date and statement cut date).

Re: Let's get specific

Anonymous — Fri, 15 Jan 2016 10:06:06 GMT

Thank you !

exactly what i needed

step by step instructions

Re: Let's get specific

takeshi74 — Fri, 15 Jan 2016 15:50:13 GMT

If this is your only card then pay the statement balance in full by the due date.

If you want to manage revolving utilization for this account then you'd need to pay down the balance to the desired level by the report date with sufficient time for the payment to clear. Then pay the remainder of the statement balance (if applicable) by the due date. Without knowing what card it is we don't know when it reports. Most cards report on statement date/end of cycle but not all do. If you're not spending more than 30% of the limit then keep it simple and just pay by the due date. You don't need to jump through hoops all the time. You may want to do so when you're ready to apply for new credit in future.

It's when you have more than one card that you may want to allow only one balance to report but, again, that's really just when you're applying for new credit and looking to eke out every possible point. You don't need to do this all the time.

I don't do this at all but with my spend, limits and number of balances my FICO 8's are all over 800 so it's just not worth the hassle to me. Someone rebuilding could certainly see a benefit, however.

I can understand wanting specifics for your current situation as that seems easier but you should work on understanding why these suggestions are made. The problem with relying on specifics is that when your situaation changes you'll be lost again. If you understand the reasoning it can be applied to any situation. There are countless permutations of sitiuations and you're not going to be able to memorize them all and you'll just end up missing the forest for the trees. It would probably help to you see the scoring impact of these things but you'd have to monitor your scores. At this stage, you really just need to build the credit history and you really don't have to obsess over revolving utilization to do that aside from trying to stay at 30% or less. $1,100 * 0.3 = $330.

Re: Let's get specific

Anonymous — Fri, 15 Jan 2016 18:20:32 GMT

Yes, my only card. for now.

I have completed 5 pfd's on medical accounts

I was able to dispute and "win" (my explanation) with a Nelnet account that had incorrect reported late pays while I was in forbearance

I was able to dispute Chase student loan and "won" because it was transferred to AES or handling and I was not informed as co borrower

I have zero Inquires and my Fico's scores range between 603 and 680 with the 603 being Transunion which is not showing most of updates yet.

I am looking to purchase a home soon.

So I want to do exactly the right thing at all times.

Thank you

Re: Let's get specific

Anonymous — Fri, 15 Jan 2016 19:03:49 GMT

@TrialByFire wrote:
Out of curiosity, what song is it lol

Is there anything in particular I can reiterate or clarify? I was meaning to respond to OPs question of how to use the card, using OP's dates of reference (i.e. Due date and statement cut date).

Marduk -The Black Tormentor of Satan. I don't listen to it unless I'm at the gym...but it just popped in my mind for no apparent reason...I dunno....

I re-read your (previous) post today and it all made sense. Thanks!

Re: Let's get specific

wmweeza — Fri, 15 Jan 2016 22:49:18 GMT

I feel your pain (at least somewhat). My Fiance of 5 years passed away, I had no credit and had to rebuild everything starting from scratch. I slowly paid off debts (some went into collections after his death) and then I sat for 2 years paying cash for everything. I started out with a secured card, I paid it early every month and treated it like my credit baby, gradually it unsecured and I got several CLI's.

Today? Well look at my signature, full credit rebuild, some great cards and most importantly I survived and rebuilt my life. I am now happily married and celebrating my 10th anniversary soon, but I will never forget the pain and struggle staring out and starting over after my loss. I still miss my fiance, but now missing him makes me smile at the memories instead of crying.

My point? You can do this, just be patient, pay on time and have faith.

I'll be cheering you on (and I'm sure somewhere your husband is cheering you on as well).

Re: Let's get specific

Anonymous — Sat, 16 Jan 2016 16:01:30 GMT

Thank you so much for your Sympathy and kindness as well as a peak in to what my future can hold for me. My usband I went from Homeonwers and living a pretty good life with financial responsibility, to selling the home and renting instead and selling loads of our stuff while he first dealth with Prostate Cancer and then a terrible, cruel monster of a rare Brain Cancer.

He was my wonderful companion in life, more than just my love, but also an incredible very best friend.

He was constantly apologizing to me at the end of his life because we had gone through our savings and sold most of our "stuff" to try and keep our heads a float. He died at home with me and our grown kids sitting all around him. To add to the financial mess, I was on a unpaid leave of absence from my job for 6 weeks so I could spend every minute with him. I do not regret any of it, but I do need to fix a whole lot of things so I can survive.

Thank you for sharing.

Re: Let's get specific

SouthJamaica — Sat, 16 Jan 2016 22:09:22 GMT

@Anonymous wrote:
I'm rebuilding after the death of my precious Husband.
Just got a secured CC

cycle date is the 3rd of month
due date is 28th of month

i funded it with $1,100.00

please give me specific instructions on how to use it
what date to pay it
Etc

i truly appreciate sound advice

thank you

Just use it a little, then pay it off immediately. Do that multiple times per month. They'll increase your credit limit. Then after you've got a track record with it, see what your credit score is, and then based on that we could advise you for another good card or two to apply for. 2 or 3 cards is all you need to get your credit score up nice and high.

Re: Let's get specific

Anonymous — Sun, 17 Jan 2016 14:38:59 GMT

Sounds like a plan!

Re: Let's get specific

wmweeza — Mon, 25 Jan 2016 23:46:34 GMT

I agree. I had one secured card that I spent $100 a month on and paid it off every month early, gradually I added more cards and branched out and now things are great! I think my credit score was about 600 when I started, so I am proof it can be done without spending a ton. I just moved slow....now it may take a few years to get great results but it will be so worth it!

You can do this! I'll happily give any advice or support. Most importantly? Be kind to yourself, you are rebuilding not just your credit but your life, and so far you are doing awesome (though it may not always feel like it)

Re: Let's get specific

wmweeza — Mon, 25 Jan 2016 23:52:01 GMT

@SouthJamaica wrote:
@Anonymous wrote:
I'm rebuilding after the death of my precious Husband.
Just got a secured CC

cycle date is the 3rd of month
due date is 28th of month

i funded it with $1,100.00

please give me specific instructions on how to use it
what date to pay it
Etc

i truly appreciate sound advice

thank you
Just use it a little, then pay it off immediately. Do that multiple times per month. They'll increase your credit limit. Then after you've got a track record with it, see what your credit score is, and then based on that we could advise you for another good card or two to apply for. 2 or 3 cards is all you need to get your credit score up nice and high.

I heartily agree. My score is awesome, and I have only 4 cards, but did most of my rebuild with just 2, one bonus of that was not having to make spreadsheets to keep track of everything!