topic Re: How to utilize my credit card as a benefit (monthly)?? in Credit Cards

How to utilize my credit card as a benefit (monthly)??

jamevfan — Sat, 14 May 2016 20:57:44 GMT

I have the QS1 with a 500CL on the way and it is my first reward card(1.5% back) but it does have an annual fee of 39 dollars, i want to maximize the use of this card in a positive way. I hear the more frequent and the bigger amounts lead to larger CLI faster...is this true and if so I have a plan to pay monthly bills totaling 400 on the card and didnt know how long to leave that balance on so they can see the activity before I PIF for the month?? can i use it to paya large bill and pay it off immedialtey or do i need to let it stay for a few weeks before the bill cuts? just trying to get how some of you make it work to get the most out if your cards without high utilization reporting regularly???

I want to eventually upgrade this card to the QS without the APR

Re: How to utilize my credit card as a benefit (monthly)??

Calistal — Sat, 14 May 2016 21:00:58 GMT

@jamevfan wrote:
I have the QS1 with a 500CL on the way and it is my first reward card(1.5% back) but it does have an annual fee of 39 dollars, i want to maximize the use of this card in a positive way. I hear the more frequent and the bigger amounts lead to larger CLI faster...is this true and if so I have a plan to pay monthly bills totaling 400 on the card and didnt know how long to leave that balance on so they can see the activity before I PIF for the month?? can i use it to paya large bill and pay it off immedialtey or do i need to let it stay for a few weeks before the bill cuts? just trying to get how some of you make it work to get the most out if your cards without high utilization reporting regularly???

I want to eventually upgrade this card to the QS without the APR

In my (admittedly limited) experience, it doesn't matter how long it's on there, just so long as it is. I used to pay so often (when my CL was lower) but now, I just make sure to pay it before the statement cuts. Seems to be working out for me so far. The credit card company sees it as soon as you spend it, so I think you're good.

Re: How to utilize my credit card as a benefit (monthly)??

SouthJamaica — Sat, 14 May 2016 21:20:48 GMT

@jamevfan wrote:
I have the QS1 with a 500CL on the way and it is my first reward card(1.5% back) but it does have an annual fee of 39 dollars, i want to maximize the use of this card in a positive way. I hear the more frequent and the bigger amounts lead to larger CLI faster...is this true and if so I have a plan to pay monthly bills totaling 400 on the card and didnt know how long to leave that balance on so they can see the activity before I PIF for the month?? can i use it to paya large bill and pay it off immedialtey or do i need to let it stay for a few weeks before the bill cuts? just trying to get how some of you make it work to get the most out if your cards without high utilization reporting regularly???

I want to eventually upgrade this card to the QS without the APR

The best way to maximize its use to get Capital One to give you a CLI is to keep on using it and paying it down to zero and using it again. Capital One will see the activity even if you pay it off the day it posts. And they will most likely reward you with auto-CLI's.

If you also want to maximize your FICO scores then I would need to know how many other cards you have, and the limits and balances, to advise you exactly, but the short answer to that is the balance reporting on the statement should be either (a) zero or (b) from 1-9%.

Re: How to utilize my credit card as a benefit (monthly)??

jamevfan — Sat, 14 May 2016 22:01:19 GMT

@SouthJamaica I only have the Capital one secured with a 200CL and showing a 35 dollar balance today, I also have the new QS1 card 500CL thats still on its way here with 0 balance and my fingerhut advanatage card with a 1300CL showing a balance of 104.96.

by balance I mean the amount used on the card not the balance thats left...hope i am clear

Re: How to utilize my credit card as a benefit (monthly)??

jamevfan — Sat, 14 May 2016 22:02:43 GMT

i would prefer to charge my card and immediatley pay it off it this will not hurt me, I hate leaving large balances on the card...

Re: How to utilize my credit card as a benefit (monthly)??

SouthJamaica — Sat, 14 May 2016 22:13:28 GMT

@jamevfan wrote:
@SouthJamaica I only have the Capital one secured with a 200CL and showing a 35 dollar balance today, I also have the new QS1 card 500CL thats still on its way here with 0 balance and my fingerhut advanatage card with a 1300CL showing a balance of 104.96.

by balance I mean the amount used on the card not the balance thats left...hope i am clear

OK you've got 3 cards, that's perfect.

Always pay off your Fingerhut and and secured card far enough in advance of the statement date so that they will be at zero balance when the statement hits. Use each card for a small purchase at least once every 3 months just to keep it open.

Use your QS1 card over and over again paying it down to zero over and over again, even in the same monthly cycle. What I do with Cap One is I go to the site and just pay off whatever the posted balance is as frequently as I can. That will make them happy in terms of CLI's.

Now, for scoring, be sure to pay it down to 9% or less (e.g. $45 balance when the limit is $500) in advance of the statement date so that the statement will report 9% or less.

This can be tricky because if you try to pay online they won't take a payment for pending payments if there's no posted balance. So if you have pending payments as you approach the statement date you may need to push a payment from your bank account.

Re: How to utilize my credit card as a benefit (monthly)??

SouthJamaica — Sat, 14 May 2016 22:12:57 GMT

@jamevfan wrote:
i would prefer to charge my card and immediatley pay it off it this will not hurt me, I hate leaving large balances on the card...

That's perfect. It will help you, not hurt you.

Re: How to utilize my credit card as a benefit (monthly)??

jamevfan — Sun, 15 May 2016 00:24:39 GMT

Awesome thanks for your feedback i just need to get an idea on a regular flow between cards and after few payments i yhink i will be fine trying to figure this all out....

Re: How to utilize my credit card as a benefit (monthly)??

Anonymous — Sun, 15 May 2016 03:10:27 GMT

You can even get more crazy… methodical… and change your due date so your statement cuts a few days before your largest bill you can pay online with the QS1.

If you get paid bi-weekly just throw them a payment every two weeks.

Re: How to utilize my credit card as a benefit (monthly)??

Anonymous — Sun, 15 May 2016 03:20:44 GMT

@SouthJamaica wrote:
@jamevfan wrote:
i would prefer to charge my card and immediatley pay it off it this will not hurt me, I hate leaving large balances on the card...
That's perfect. It will help you, not hurt you.

@Anonymous will NOT hurt, just be careful to allow the charge to 'post'.....so buying gas @ 12noon and running home to pay by 1pm isn't ideal.

Let it post and then you're free to knock out that payment as you see fit.

Remember the CC company makes money on the exchange fee, so they don't mind if you run it up and pay it down DAILY cause they make

money.

As mentioned earlier the 'reported balance' is the only consideration towards Fico, however a particulair vendor may or may not 'reward'

X amount of usage...2 different things.

IMO there is a diminishing effect at a point regarding builder card activity vs the overall profile

EX:

A file with only the history of a Cap-1 secured card, a QS1 and a FH account can can benefit 'so much' by crazy use

a formerly thick file rebounding from a BK

File 1 might push a $500 limit to $1500 + steps increase but no amount of usage alone will push it to several THOUSANDS 'just b/c'

Whereas file 2 could actually see (possibly) a major CLI due to the file being seen as rebounding file vs a thin file on the build.

For the OP just use your card pay your bill and it will grow but please don't overspend trying to push a CLI it leads to bad habits, that tend to come back

to bite.....

Good Luck

Re: How to utilize my credit card as a benefit (monthly)??

Anonymous — Sun, 15 May 2016 11:54:41 GMT

You should use your credit card(s) and pay your balances in a way that works with your finances. Don't use your card for the sole purpose of getting a higher CL. If you use it responsibly, CLIs will happen. Building a solid credit profile is a marathon not a sprint. Be patient.

Yes, some people use credit card(s) to pay their monthly bills. We use this system in our household. It works for us. You have to determine if it will work for you.

Best of luck!

Re: How to utilize my credit card as a benefit (monthly)??

jamevfan — Sun, 15 May 2016 21:07:55 GMT

So much good advice, im glad i have you guys to help with me getting familair with my credit, here I am 39 yrs old to come to the realization that this is needed.....Sad but im glad im all over it now. I will take everyones advice as it is all good info and us it to my advantage. I will be more responisble with my credit and usagae but I dont need to add anymore bad habits

Thanks again everyone!

Re: How to utilize my credit card as a benefit (monthly)??

Cswildfeuer — Sun, 15 May 2016 21:13:26 GMT

i see the "gardening since..." what does that mean exactly?

Re: How to utilize my credit card as a benefit (monthly)??

jamevfan — Sun, 15 May 2016 21:15:12 GMT

it means that they have been nurturing the credit that they currently have

Re: How to utilize my credit card as a benefit (monthly)??

Anonymous — Mon, 16 May 2016 00:07:24 GMT

@jamevfan wrote:
So much good advice, im glad i have you guys to help with me getting familair with my credit, here I am 39 yrs old to come to the realization that this is needed.....Sad but im glad im all over it now. I will take everyones advice as it is all good info and us it to my advantage. I will be more responisble with my credit and usagae but I dont need to add anymore bad habits

Thanks again everyone!

You're welcome and keep up the good work!

Re: How to utilize my credit card as a benefit (monthly)??

Anonymous — Mon, 16 May 2016 00:24:08 GMT

@Cswildfeuer wrote:
i see the "gardening since..." what does that mean exactly?

It means that I entered the garden on April 22, 2016. There is a monthly thread dedicated to folks, like myself (right now), that are currently refraining from applying for new credit. People garden for different reasons. My current gardening goals are no new credit, increase AAoA, allow inquiries to fall off, and pay down credit card balances.

I am including the May 2016 thread for you. Come in and take a look around. We don't bite. Lol!

http://ficoforums.myfico.com/t5/Credit-Cards/Garden-Club-May-2016/td-p/4573075

Re: How to utilize my credit card as a benefit (monthly)??

Cswildfeuer — Mon, 16 May 2016 02:38:36 GMT

I will right now.i need to do this too

Re: How to utilize my credit card as a benefit (monthly)??

takeshi74 — Mon, 16 May 2016 13:10:48 GMT

@jamevfan wrote:
I hear the more frequent and the bigger amounts lead to larger CLI faster...is this true

It's a popular meme but usage does not lead to CLI's on its own. Usage may help to some small degree in some cases but the primary considerations are always credit profile and income. High usage and a profile/income that do not support a CLI will not lead to a CLI. Profile/income that supports a CLI can lead to CLI regardless of usage. Don't rely solely on usage. Don't rely solely on any one factor. It is not just the account itself that is considered but your entire credit profile.

Few creditors use the scores in your signature but even so those scores and your $500 limit indicate that there are issues with your credit profile. Work in identifying and addressing those issues. Also, don't rely solely on those scores. Always consider the relevance of any scoring model & CRA combo to a given creditior/product.

Re: How to utilize my credit card as a benefit (monthly)??

jamevfan — Mon, 16 May 2016 13:33:44 GMT

thanks!