Which Card should I get Next? Advice on Using Cards?

[Anonymous]

I recently applied and was approved for the Capital One Quicksilver One Master Card and the Platinum Master Card, each card with a $300 limit. My scores with Credit Karma (I realize these are not FICO but are FACKO scores) are 601 TU and 597 EQ not sure of EX.  I have done a lot of reading on here and have read that you need a minimum of 3 revolving lines of credit to really see a increase in your scores when used correctly in the shortest amount of time. I am stuck on which card to apply for next to complete my 3 revolving TL. My plan then is to garden for at least a year so some previous inquiries fall off and focus on building up my score. My goal is to be in the 700's this time next year, I have never had a credit card before and I am trying to understand the best way to use them  (daily spending, one charge a month, etc) as I am having a hard time understanding the best way to utilize the cards to my advantage and increase my scores when it comes to balances reporting, utilization, and making payments (I do understand it should be PIF to avoid interest every month). Any advice on that would be greatly appreciated as well.

Thank you in advance! 

[morgacj2004]

Perhaps the Discover secured card. I think your scores are too low for the BC Reward although if you can get them in the 620-630 range u might get approved. Maybe the Walmart store card or Target Red Card? 

[Anonymous]

Personally, here is what I would do.

1) Pertaining to how to use the card- they say the lower the utilization rate, the better, especially under 10%. In your case, using close to the limit may make your scores a bit lower, but will show you can handle the balances every month. On a credit report, they are only going to see the statement balance. So, spending 250$ once is equal to 50$ 5 times per month at the end of the month. That is my understanding at least. I am sure there are exceptions.

2) I would run those Cap 1 cards at least 3 months before applying for another card to show responsible usage. Then, I would apply for a card that is lower on your list of cards you want, as you will likely get a lower limit. Then, after your Cap 1 cards and this card grow, keep your total utilization under 10% of your overall credit limit. You could get a secured card now from a nice bank, but secured cards can be a huge pain to upgrade, even after your credit is decent. I would work the two cards you have and watch them grow. Chances are, your credit score will warrant a "prime" card long before your bank will upgrade your secured card!

3) Your scores will grow, and rather quick once you have higher limits on the cap 1 and get a third card. Once you hit the 680-720 range, then start to go for the cards you want the most. This way, you will get decent limits on the cards you want most.

Keep paying in full, and be patient! Credit takes a lot of time to build, but not a lot of time to ruin.