topic Re: Am I doing everything correct? in Credit Cards

Am I doing everything correct?

Anonymous — Sun, 27 Jul 2014 18:53:01 GMT

Hi all! I am an 18 year old male and I got approved for the Bank America Cash Rewards Card about 2 months ago with a credit limit of $700. I spend about $300-$320 a month on it, but pay off about 95% of the cards balance before the statement closes to show a 5% utilization rate. If you are familiar with BOA, they give you a "due date" (which is about 2 days before "statement closing date") Example: Bill is due on 08/02... Statement closes on 08/04.

I'm looking forward to that $100 bonus back in rewards for spending $500 within 90 days of the account opening!

So my question is.. Am I doing everything right to boost my credit score? What can I do that I am not doing to benefit my score? How long will it take if I continue on the same pace as I am practicing now to get my score near the high 600s.. Maybe even low 700s? And when should the appropriate time be for me to apply for another card, preferably a Best Buy Credit Card seeing as I've read that store cards are good for scores too. I'm really liking the American Express & Discover It cards too!

Thank you all very very very much!

Re: Am I doing everything correct?

Glkslngr — Sun, 27 Jul 2014 18:49:57 GMT

Hi-

What are your current scores and income? So far,I bellieve you're off to a good start!

Re: Am I doing everything correct?

daybreakgonesXe — Sun, 27 Jul 2014 18:51:15 GMT

@Anonymous wrote:
Hi all! I am an 18 year old male and I got approved for the Bank America Cash Rewards Card about 2 months ago with a credit limit of $700. I spend about $300-$320 a month on it, but pay off about 95% of the cards balance before the statement closes to show a 5% utilization rate. If you are familiar with BOA, they give you a "due date" (which is about 2 days before "statement closing date), then they give you a closing date.

I'm looking forward to that $100 bonus back in rewards for spending $500 within 90 days of the account opening!

So my question is.. Am I doing everything right to boost my credit score? What can I do that I am not doing to benefit my score? How long will it take if I continue on the same pace as I am practicing now to get my score near the high 600s.. Maybe even low 700s? And when should the appropriate time be for me to apply for another card, preferably a Best Buy Credit Card seeing as I've read that store cards are good for scores too.

Thank you all very very very much!

Hey Corey!

You're doing great so far, congrats on getting your credit started young I was the exact same way, 22 now, and well, you can see how far I've gotten!

Are you planning on attending college? If so, you'll likely have a student loan reporting in the next few months. What about an auto loan or AU accounts?

If it's just the one card, good for you! I actually recommend using that card for 6 months to get some history, then applying for another card. No need for a store card unless it's one you feel you'll get a good use out of! I enjoy my JCP card, personally, and I worked there for five and a half years so I got/get a lot of use out of it!

My advice is garden for at least 6 months, and make a list of cards you'd like in the future. I'm a big proponent for "slow and steady" wins the race, and getting cards you really want. Only 3/8 of the cards I have I plan on keeping long-term, and I have a list of 11 other cards I want to get sometime in the future :X

Good luck on your journey, and if you ever need any help/advice, feel free to PM me!

Re: Am I doing everything correct?

coldnmn — Sun, 27 Jul 2014 18:54:04 GMT

Your doing the right thing now in my opinion. The last card on earth I would get second would be a Best Buy card. I would get a Barclay Rewards for average credit or the Discover IT. But wait for at least six months to apply for a second card.

Re: Am I doing everything correct?

ezdoesit — Sun, 27 Jul 2014 18:55:23 GMT

I think your doing great. The one question I ask is and I have never had a BOA card but how can the due date be before the end of the statement? Then where would the grace period be?

Re: Am I doing everything correct?

Anonymous — Sun, 27 Jul 2014 18:56:56 GMT

@Veg325

I have not checked my scores yet. I've read that those who give you the "free" screenings like credit.com are pretty much useless as they don't give you a precise score and only grade you by A, B, C, etc on different categories. I was also told CreditKarma.com is far off.

I'd really like to check my score, but those who seem accurate (like TransUnion, Experian, even FICO) wants your wallet... Which I have no problem with if it's a good price, I just don't see the point in checking it when I have nothing but literally 1-2 months of history on my thin credit file.... I'm not sure, what do you think I should do? You guys are the pros!

Re: Am I doing everything correct?

daybreakgonesXe — Sun, 27 Jul 2014 19:09:31 GMT

@Anonymous wrote:
@Glkslngr

I have not checked my scores yet. I've read that those who give you the "free" screenings like credit.com are pretty much useless as they don't give you a precise score and only grade you by A, B, C, etc on different categories. I was also told CreditKarma.com is far off.

I'd really like to check my score, but those who seem accurate (like TransUnion, Experian, even FICO) wants your wallet... Which I have no problem with if it's a good price, I just don't see the point in checking it when I have nothing but literally 1-2 months of history on my thin credit file.... I'm not sure, what do you think I should do? You guys are the pros!

I wouldn't pay for scores tbh, especially considering you're starting from scratch; it can only go up from here!

The free sites are a good to help monitor your reports. Otherwise, always paying on time, letting your account history age, and letting 1-9% on your BOA card will help optimize your score.

Re: Am I doing everything correct?

Middleswarth — Sun, 27 Jul 2014 19:11:28 GMT

I do not think it is worth while spending any money on a score at this point. Your credit is so new you may not even have one yet. I suggest you keep the one card for 6 months and then try to get a card that includes a free score like Discover or a Barclay.

At this point you your life slow and steady is the best way. Don't rush things and you will be sitting pretty in a couple years. Good luck.

Re: Am I doing everything correct?

newhis — Sun, 27 Jul 2014 19:19:52 GMT

@ezdoesit wrote:
I think your doing great. The one question I ask is and I have never had a BOA card but how can the due date be before the end of the statement? Then where would the grace period be?

The due date is for the last statement. 2 days after your due date the next statement closes. So the grace period is 28 days.

Re: Am I doing everything correct?

Closingracer99 — Sun, 27 Jul 2014 19:45:45 GMT

@Anonymous wrote:
@Glkslngr

I have not checked my scores yet. I've read that those who give you the "free" screenings like credit.com are pretty much useless as they don't give you a precise score and only grade you by A, B, C, etc on different categories. I was also told CreditKarma.com is far off.

I'd really like to check my score, but those who seem accurate (like TransUnion, Experian, even FICO) wants your wallet... Which I have no problem with if it's a good price, I just don't see the point in checking it when I have nothing but literally 1-2 months of history on my thin credit file.... I'm not sure, what do you think I should do? You guys are the pros!

If you have no baddies I don't see why your scores won't be in the low 700's by years end and very possibly 6 months later. I got my Discover it card 13 months ago and around Jan it was around 730ish. My scores which I last saw was in June are posted in my Sig but they are EX: 705, TU: 717, EQ: 682.

I would suggest the Discover it card since it offers a free FICO TU score every month and so does a Barclay's card but I dont have it and don't remember the name