topic Re: hi new to the forum in General Credit Topics

hi new to the forum

Anonymous — Tue, 28 Apr 2015 01:16:46 GMT

I have bad credit for a while. Just with ontime payments ive jumped my score to 602.

I just got a bill consolidation loan and for the first time in a long time..i have everything paid off.

My question is how should i use my cards, or not at all?

I was told to keep the cards active and use one for small things but pay off every month.

Then i should be able to get a major card and close the others.

Is that right?

Re: hi new to the forum

myjourney — Tue, 28 Apr 2015 02:05:58 GMT

Welcome to the forum

You can still use your cards but for max scoring

Keep UTL 1-9% monthly
Let one card report the 1-9% any other cards pay before statement cuts so it shows $0
Anything you charge pay completely off each month so as not to increase debt
Pay off loan sooner than later cause as balances come down scores go up

Re: hi new to the forum

Anonymous — Tue, 28 Apr 2015 03:11:30 GMT

Welcome to the forum. Congrats on having your debt paid off, it feels good.

- Find out what the statement closing date is on the card

- Use the card to make purcahses

- Make regular payments on the card (I pay all but one card off each month before the statement closes, this way my utilization is between 1% and 5%, but always pay the card off by the due date).

Doing this shold help with your score, but remember, it takes time to build your profile.

Re: hi new to the forum

Anonymous — Tue, 28 Apr 2015 14:02:30 GMT

can we ask who you got your credit consolidation loan with?

PS Welcom Aboard

Re: hi new to the forum

takeshi74 — Thu, 30 Apr 2015 12:13:08 GMT

@Anonymous wrote:
I was told to keep the cards active and use one for small things but pay off every month.

Definitely pay in full. With a consolidation loan the last thing you need to do is run up credit card debt on top of that loan. If you aren't budgeting and sticking to it then work on that.

As for the cards, specific usage doesn't really matter as individual transactions don't have a direct impact on your credit. It's the reported balances and your revolving utilization (falls under Amounts Owed below) that matter. Start here to understand the factors and keep the utilization recommendations above in mind as well.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Note that paying in full by the due date does not affect your reported balances. If you need to reduce a balance that will report you need to reduce the balance prior to the date that the account reports. Most cards report on statement date but there are those that do not so you need to confirm when ech of your accounts reports. You can ask your creditors or refer to your credit reports.