BOA Partially secured, $99 down, $500 limit!

[Anonymous]

Hello everyone! I have just been approved for my first credit card with Bank of America. It is the cash rewards credit card, partially secured with $99 down and $500 credit limit! This is my first credt card and trying to build my credit have some questions, and also anything else that you guys can tell me that I should know to help me out.

1. I won't have to pay interest if I pay in full right? Example I buy something for like $100 and thats it, then the credit card bill comes in, and I pay in full. Keep paying in full and I won't ever have to pay interestet?

2. I read that using around 30 percent of your credit limit is better to help build for your credit?

3. What else should I know, advice, can you give me to help out a newbie?

Thanks,

[jacetx]

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@Anonymous wrote:

Hello everyone! I have just been approved for my first credit card with Bank of America. It is the cash rewards credit card, partially secured with $99 down and $500 credit limit! This is my first credt card and trying to build my credit have some questions, and also anything else that you guys can tell me that I should know to help me out.

1. I won't have to pay interest if I pay in full right? Example I buy something for like $100 and thats it, then the credit card bill comes in, and I pay in full. Keep paying in full and I won't ever have to pay interestet?

In order to not pay interest you have to pay in full before your bill is due.

2. I read that using around 30 percent of your credit limit is better to help build for your credit?

This is for reporting purposes. You do not want your card to report more than 30% utilization. Ideally this number would be under 10%.

3. What else should I know, advice, can you give me to help out a newbie?

Use the card for 6 months, pay in full, and check for prequalified offers on sites such as Amex, Capital One, Chase, US Bank.

Thanks,

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Congrats!

[Anonymous]

Thanks jace,

Follow up to #1. Would it be the same as the due date? Or do they not tell you when they report it, so will just have pay the bill as soon as I get it?

[Anonymous]

You are correct RE: avoiding interest charges.

As long as you pay in full within the grace period (the day your statement cuts until the day your bill is due), you do not pay interest.  If you do not pay in full, you will be subject to interest charges until you pay in full again.  This doesn't apply to cash advances - those usually have no grace period.  

As far as utilization goes, keeping it lower does look better for your score, but utilization doesn't have a memory so just make sure it's low in the few months prior to applying for any new credit.  It is better to let something report, even if it's just a couple dollars, because that shows you actually use the card and shows you are capable of paying it off on time - creditors like to see positive payment history.  Again, as long as you pay in full on or before the due date you will not be subject to interest charges.

Congrats on your approval!!

[jacetx]

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@Anonymous wrote:

Thanks jace,

Follow up to #1. Would it be the same as the due date? Or do they not tell you when they report it, so will just have pay the bill as soon as I get it?

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See michikade's answer and my revised answer. Sorry for the confusion 

[Anonymous]

Ok great, sounds good! Thank you both for the info!

[pizza1]

much congrats

[Anonymous]

Thanks pizza1!

[MovinOnUp2014]

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@Anonymous wrote:

Hello everyone! I have just been approved for my first credit card with Bank of America. It is the cash rewards credit card, partially secured with $99 down and $500 credit limit! This is my first credt card and trying to build my credit have some questions, and also anything else that you guys can tell me that I should know to help me out.

1. I won't have to pay interest if I pay in full right? Example I buy something for like $100 and thats it, then the credit card bill comes in, and I pay in full. Keep paying in full and I won't ever have to pay interestet?

2. I read that using around 30 percent of your credit limit is better to help build for your credit?

3. What else should I know, advice, can you give me to help out a newbie?

Thanks,

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Congratulations and you've received some great advice!

[Anonymous]

Do they only offer the counter for the Cash Rewards?