No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Congrats on your recent successes! The number of payments you make and your utilization will depend on your spend and if you want to make one large payment or break it into multiple payments. The rule of thumb, on the forum, is to only allow 1 card to report a balance each month with the utilization being between 1%-9%.
A word of caution. Don't spend more than you can afford to PIF each month. I use my credit cards for my regular monthly spend for things like groceries and gas. I make a payment after each purchase, but that's me. You have to find a system that works for you.
Recently, I started using my credit card to pay my utilities, again, it's money I would spend every month anyway. Now I am maximizing my cash back earnings for bills I would normally use cash to pay. See you around the forum!
I'm currently in the rebuilding process too. A couple months ago Capital One gave me my first card, a Journey Student card. I, too, started with a $300 SL.
Call CapOne and ask them when your payment due date is and also when your statement closes. They will report to all three CB 2-3 days after your statement closes.
I use my card for everything I can for the cash back rewards: gas, groceries, fast food, movies, clothes, car maintenance, etc.
I ONLY buy what I know I will have the cash to repay. I will never carry a balance over 9% when my statement closes along with the intention of paying it off right after.
I pay all my bills with it (except where I might get an additional charge for using a CC, like my gas bill).
I PIF weekly (or more often because of my low CL). You can only pay 10% above your balance so you can't pay more to have a big statement credit.
I apply my cash rewards to my statement balance whenever I feel like it. (Love this feature. Some CC companies only let you use your rewards after they reach a certain amount or in future statement cycles.)
New transactions can take a few days to go from pending status to posted before you can pay them, and longer if over the weekend and you can't make payments on pending transactions. Keep this in mind when you're getting close to your statement closing. If you put a large charge on your card 2 or 3 days before your statement closes it takes a few days to post and another few days for a payment to post. Your account could have a big balance that reports to the CB and affects your UTIL. I don't use my card during this time and plan around it.
I was auto-enrolled in Credit Steps and was told I would have a CLI from $300 to $500 after I paid on time for 5 consectutive months.
About 2 weeks after I got my 2nd statement, I PIF, waited for it to post, and clicked the CLI button in my account. I was given a CLI to $800! I didn't have to wait for 5 months. It was also a SP so I wasn't afraid of being denied. I've read here that some people have still gotten another CLI after the original 5 months with the Credit Steps. Looking forward to finding out!
I was also eligible to PC my card to a regular Quicksilver card, no AF, and 1.5% cash back.
Utilization is your total available credit limits on all of your credit cards. If you have a total of $600 CL between your cards, you can carry a balance of $54 (9%) on one card or spread between both cards and the CB will report your utilization at 9%. The CB counts up CL's on all your CC's and treats it as a single item.
Hope you're having as much fun as I'm having. There's so much to learn and these forums have been the best!
I believe the easiest way to start using your credit cards while keeping the UTL low, is to fill your car up with it and pay it off when the bill comes on... If you do this I guarantee you will get a CLI after 2-3 months, another at 6mo mark, and then another at 12mo..
ok, so at the end of the day is it better to leave a balance or pay in full?
@OmarGB9 wrote:
Personal preference. The main thing here is to show heavy usage and good payment history.
+1 if you decide to leave a balance, make sure it's in that prime range of 1-9% UTIL. Good luck!
@OmarGB9 wrote:
^CLIs are not guaranteed by any means. Is it easier to get CLIs from cap1? Perhaps. But definitely no guarantees. As with anything credit related, YMMV.
If OP doesn't miss any payments he WILL get an increase...