How should i Use my Capital one card?

[Anonymous]

Also, it is very hard to scare Capital One unless you pay late. So dont worry about that.

[Anonymous]

What's good about the capital one secured is that it's a credit card and certificate of deposit account all in one. I keep adding hundreds onto the deposit to build the credit limit to around $2,500 the money is still mine. I'll get it back when I close the card, not that would ever want to close the card. But I can totally see getting approved for bigger and better cards by using this.

[Anonymous]

@ Johnnyconsumer.

I thought reporting 10-15% utilization built score, you are saying it doesnt?
im a bit lost as to what you meant

[OmarGB9]

I think what he's trying to say is that the "keep util low" thing is more for optimizing your score once you have all the credit you need.

[Anonymous]

Your utilization does matter but not in the way i think you think it does. Your utilization does not "build" your score. It will only increase it or decrease it for that particular month. It has no "memory". Prior months utilization will have no effect on future months scores.

ASSUMING your report absolutely didnt change in this scenario I am about to describe(this wont happen due to AAoA), but assuming it didnt, use this as an example. Say you had 10% in July with a 650 score. The next month your utilization went to 100% in August, and your score drops to 600. In September, if you went back to 10% utilization, you would be back at 650 exactly.

That is hypothetical, but that is in essence how the utlization factors in, and what I mean by it has no memory and that it does not build your score.

Trying to keep utilization at a certain percent EVERY month is really just pointless.

[Anonymous]

I apologize if my post doesnt make a lot of sense. This is why I would never go into the field of education. If someone else can explain what I am attempting to explain better, please do so as I think what I wrote probably would seem a little confusing for those that are new to credit.

[Anonymous]

That last explanation made perfect sense. 

Thank you!

[NRB525]

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@Anonymous wrote:

How should I use my New Capital 1 card? money isnt really too much of an issue, i was going to use it in place of my Debit card, is this an acceptable method?

I plan to pay it to 10-15% UTIL on cut date and PIF 4-5 days after cut. I just want the best credit building.

Also, i dont want to scare capital one, is it frowned upon to use your card past certain % milestones?
$700 Limit, i could see myself using $300-500 a month on it in place of debit card expenses, what do you all think. Tips? Suggestions? thank you!

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Rule number 1: Charge what you can pay.

Rule number 2: Just don't exceed $699 and you'll be fine.

Example usage: Charge as if it were a debit card, up to $600, then schedule a payment for the next day.

Example usage #2: Charge it to $500 and schedule a payment for two days out.

the key here is: You pay the amount you've charged. There is only the $700 limit. As long as you stay within that limit and pay it, there will be no issues from Capital One, and long term, it will help your future credit applications when most of your statements are near that $700 limit, on the statement reporting.

Don't worry about how your current FICO score will look when $600 is on your card statement. In 6 months, no one will care that it was $600 of a $700 limit, except for the fact that you then turned around and paid that $600, and then charged it again to $600, and paid it, and charged it again to $600, and paid it, etc. The point of letting the $600 report is, it shows you have borrowed a (relative to your available credit) substantial amount, and then paid it back with no missed payments.

There's a lot of advice here to keep your reported balance at a low percentage of limit. That's fine when you are leading up to some app, for one statement. All other months, the limit is available to report, and with a $700 limit, that $700 should be pushed on the statement balance. Just don't exceed that limit.

Good luck!

[Anonymous]

Glad that made sense. I knew what i was talking about and thought "gee this sounds a little confusing". lol so im glad it helped and was understandable

[Anonymous]

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@NRB525 wrote:

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@Anonymous wrote:

How should I use my New Capital 1 card? money isnt really too much of an issue, i was going to use it in place of my Debit card, is this an acceptable method?

I plan to pay it to 10-15% UTIL on cut date and PIF 4-5 days after cut. I just want the best credit building.

Also, i dont want to scare capital one, is it frowned upon to use your card past certain % milestones?
$700 Limit, i could see myself using $300-500 a month on it in place of debit card expenses, what do you all think. Tips? Suggestions? thank you!

---

Rule number 1: Charge what you can pay.

Rule number 2: Just don't exceed $699 and you'll be fine.

Example usage: Charge as if it were a debit card, up to $600, then schedule a payment for the next day.

Example usage #2: Charge it to $500 and schedule a payment for two days out.

the key here is: You pay the amount you've charged. There is only the $700 limit. As long as you stay within that limit and pay it, there will be no issues from Capital One, and long term, it will help your future credit applications when most of your statements are near that $700 limit, on the statement reporting.

Don't worry about how your current FICO score will look when $600 is on your card statement. In 6 months, no one will care that it was $600 of a $700 limit, except for the fact that you then turned around and paid that $600, and then charged it again to $600, and paid it, and charged it again to $600, and paid it, etc. The point of letting the $600 report is, it shows you have borrowed a (relative to your available credit) substantial amount, and then paid it back with no missed payments.

There's a lot of advice here to keep your reported balance at a low percentage of limit. That's fine when you are leading up to some app, for one statement. All other months, the limit is available to report, and with a $700 limit, that $700 should be pushed on the statement balance. Just don't exceed that limit.

Good luck!

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Exactly, Let your statements report. Use the grace period and to that effect, Your Credit to YOUR advantage.