First Post, First Credit Card!! Advice?

[webhopper]

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@jamesdwi wrote:

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@Anonymous wrote:

Hi All!

I am so excited, I was approved for the Capital One Secured Mastercard with a $200 limit !! It's a pretty big deal for me, as I've never had a credit card.

I don't know what my credit score is. (equifax didn't have one for me)

I know I have a few negatives in my report though. (old medical bill, utilities bill and comcast from a few years ago, not paid off yet)

I also defaulted on a student loan from going to college in 2006, I tried to rehab the loan last year but it still shows that it was 120+ delinquent for a while. I finally got it out of the hands of the collection company, and got back in good standing with dept of education.

Now I am back in college full time and my current student loans are payment deferred due to in-school status.

So I'm not sure if that's considered a thin file or not? I have a few collections and my student loans past and current.

I am trying to figure out the best way to use this card to finally be on my way to good credit.

From everything I've read I think i should:

Charge 30% of the credit limit per month ($60)

Pay it all off except for a few dollars leaving under 10% (under $20)

Repeat for a few months

And then apply for the Capital One Journey student card.

After 1 year, apply for USBank secured or BOA secured

Is this a good plan?

I know I can add money to the card to increase my credit line, should I :

Add $200 every month to the credit line till it reaches max ($3000)  or

Make one large increase or

Just let it stay a low credit limit??

Does increasing your credit line too fast look bad?

I am going to be getting an iphone soon and signing up with att wireless, I think they do a hard pull inquiry.

My ultimate goal with credit is to be able to qualify to buy a home, not sure how long that will take..especially in lower income bracket.

Any advice would be much appreciated!

Thank you

Have a great day!

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If you get the second card, the student card,  don't open another secured card, should be set for unsecured cards at 6 months, especially with some clean up, PFD (pay for delete),  just paying them off does little good. you want to get them off your reports. 

Don't wait to apply for a second secured card if you have the funds. two cards reporting for 6 months will do wonders for your score. And should get you in with capone, or hsbc master cards, or many of GE store cards. Get your scores up to 650, with one year of credit history, no lates on any credit card you may be in line for AMEX zync. 

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+1...   One thing I might add... I would do without ATT Iphone for a while, with your score they will likely require a $500 deposit... that money plus the cost of the new phone would be better served by PFD or PIF all those old creditors.... Your score can't really improve as long as those bad guys are still hanging out there unpaid.   Plus, even an FHA loan requires 2 yrs of good credit history, so the sooner you get them paid, the better off you'll be in the housing situation.

[Creditaddict]

I missed iPhone question... Do you owe ATT money?

Otherwise believe they are just Soft Pull and I would not expect a deposit at all. If so why not go with Verizon, My friend just got Verizon last month and when I say he has never paid for anything in his entire life I mean he has burned Verizon hardcore but it's very old and currently not a single thing being paid including student loans and all credit has been charged off and with collections and he was instantly approved for verizon no deposit!!!!

[Anonymous]

Adding more money to your deposit looks good.   Do it as fast as you want and can afford. 

Use your card for your normal expenses, and PIF.   PIF means paying the closing balance by the due date.   You should not be paying in interest.

At this point don't worry about utilization, it is not important until you are ready for next application.

Wait a year before trying for a card from Capital One.    Wait another 6 months before US Bank (much pickier).