Re: First CC Ever.

Anonymous · ‎05-22-2015

Hey!

In an attempt to rebuild my credit, I've just recieved my first credit card ever. It's a capital one secured card with a limit of $200. I've read and researched, and to get the most of this card I need to keep my utlization low. How do I go about doing this?

Is it best to keep a small balance on the card such as $18 or something, or just pay it in full every month before the statement issues?

dragontears · ‎05-22-2015

when I started out with my first card (also a secured card from cap1) I would put a tank of gas on it and pay down to <$20 (if needed since I had a small car at the time), as soon as the statement cut would pay it to $0; rinse and repeat. I managed to get an CLI (unsecured) after 6-7 months doing that. YMMV

I have read from others that they favor heavy usage and paying down to the ~10% by the due date but I found that to be a hassle for a card I only planned to keep until I got better cards.

jsucool76 · ‎05-22-2015

Just use the card like normal. Don't worry about paying it off before the statement. Just make sure it's paid in full by the due date. The point of paying before a statement is to impact (or reduce the impact) of your utilization. Your utilization changes every month, and unless you plan on applying for something there's just not a point in putting the extra work in to track your statement date and make sure the balance is paid to between 1-9% of the limit before the statement cuts.

Anonymous · ‎05-22-2015

I spoke to a Cap1 representative via the chat, and he said my first statement date was 6/12/15, with the first due date being 7/9/15. Is that correct? Being almost a month apart.

So I'll just use it to buy gas and maybe a shirt or something, then pay it in full before the due date. Correct?

Pway · ‎05-22-2015

Yes that sounds about right. It usually take that 1st statement a minute. However, since this is your first credit card I would pay before the statement cuts. It is better looked at for scoring purposes. Having one credit card and reproting over 30 percent is not a good look. Usually 1-9 percent posting each month is good. Pay it down between 1 and 9 percent and you should be good. Treat them well and they will do the same. Maybe in a couple of month check their pre qual site and see if they offer you the QS1 or Platinum. Capital One is one of those companies that like to see heavy useage on their card products.

Thank you for the wealth of knowledge I have learned from these forums. I am logging off as of November 9, 2022. I wish everyone great success.

dragontears · ‎05-22-2015

@Anonymous wrote:
I spoke to a Cap1 representative via the chat, and he said my first statement date was 6/12/15, with the first due date being 7/9/15. Is that correct? Being almost a month apart.

So I'll just use it to buy gas and maybe a shirt or something, then pay it in full before the due date. Correct?

the dates sound about right, your second statement date should be 7/12.

Since this is your first and only card don't worry about having it report at $0 (it actually hurts your scores to have all CCs at $0); make a small charge and pay it after the statement date (so it reports the small balence) but before the due date (so you don't get late fees).

Anonymous · ‎05-22-2015

Congratulations on your very first credit card. It is one of many marks of distinction as you move through adulthood. Be wise; it is a privilege easily abused. (and soon you will develop an addiction to MyFico.com - I say jokingly).