Hi All!
I currently have secured Cap1 $300 limit - deposited $700 and increase should take effect soon - $1000.00.
I've read few forums and learned to "keep the cc utilization low (<30%), let the balance report to CRAs(about 1-5%) and make sure to PIF before APR hits (15 days grace period)." Will this work? Also since this is my only one card, I am not sure if I should garden this at least 6 months themeet BoA secured.
So, if I may clarify:
$1000.00 limit
Utilization should be less than $300.00 (<30%)
Let the Balance be reported to all CRAs $50.00 (5% maximum)
Pay the $50.00 before APR hits (15 days grace period by Cap1)
Because I was also informed from forums that if I just PIF every month and have no balances, Cap1 will not report to CRAs at all (unless my utilization was higher than the last statement cycle) - which will hurt me of getting any other cards because I want the payment history to show. This method was only recommended for builders who's looking to app anytime soon.
Any words and wisdoms much appreciated 
!!
Congrats to you!
@Anonymous wrote:Thanks Unique! So do you think I am doing alright with my utilization and balance for my cc?
Yes. Your plan looks fine to me. I actually pay the amount I allow report to CR's the day after the bill cuts, so I won't forget.
@Anonymous wrote:Hi All!
I currently have secured Cap1 $300 limit - deposited $700 and increase should take effect soon - $1000.00.
I've read few forums and learned to "keep the cc utilization low (<30%), let the balance report to CRAs(about 1-5%) and make sure to PIF before APR hits (15 days grace period)." Will this work? Also since this is my only one card, I am not sure if I should garden this at least 6 months themeet BoA secured.
So, if I may clarify:
$1000.00 limit
Utilization should be less than $300.00 (<30%)
Let the Balance be reported to all CRAs $50.00 (5% maximum)
Pay the $50.00 before APR hits (15 days grace period by Cap1)
Because I was also informed from forums that if I just PIF every month and have no balances, Cap1 will not report to CRAs at all (unless my utilization was higher than the last statement cycle) - which will hurt me of getting any other cards because I want the payment history to show. This method was only recommended for builders who's looking to app anytime soon.
Any words and wisdoms much appreciated
No point in worry about Utilization at this point. Use the card for all your normal expenses and PIF by the due date to avoid interest. IMO, better to show them you have the resources to pay your bill every month. My utilization was high for the whole time I had mine.
In my opinion i would add:
- one store card : Walmart, Victoria sercret....Express.....those list as store card
- One more credit card or secured credit card. Go to your local bank and ask them if they can grant some credit card or secured CC offer for u.
I would keep the balance post to credit bureau no more than 6% if possible.
Set up automatic paid after billing cycle cut by that way you will not paid interest and know your bill should be paid from day 1.
After that garden for 1 year then add 2, 3 more trade line each year.
Good Luck.
Starting Score: 560
There's nothing a store card does for anyone that a national bank card doesn't; only exception would be a particular reward at that specific store.
I'd apply for the BOFA secured now personally. Third card would be one at local bank / CU as Nicholas suggests. 6 months waiting is six months lost in credit file building and being a thin file is no bueno.
I'd apply for the BOFA secured now personally. Third card would be one at local bank / CU as Nicholas suggests. 6 months waiting is six months lost in credit file building and being a thin file is no bueno.