How to use??

[Lthomas356]

Hello all. I got student credit card back in 2004 and it was charged off. Now it is seven years later and I realize how important good credit is. Since joining this message board on 02-09-2009 my credit scores were TU 547 EQ 519 EX 541. I recently pulled all three reports but only have the EQ score which is 607 now. At the end of the report it says what is hurting my score. It says: There are one or more accounts with a major derogatory event in your credit file, The age of accounts in your credit file, There is insufficient information, or no account history, for credit card accounts, and There is insufficient information, or no account history, for mortgage accounts> I recently applied and was approved for a Capital One secured credit card. A few days ago I paid the $49 deposit. I would like to know HOW SHOULD I USE THIS CARD? PLEASE HELP!!! Thanks!!

[Anonymous]

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Lthomas356 wrote:
Hello all. I got student credit card back in 2004 and it was charged off. Now it is seven years later and I realize how important good credit is. Since joining this message board on 02-09-2009 my credit scores were TU 547 EQ 519 EX 541.

I recently pulled all three reports but only have the EQ score which is 607 now.

At the end of the report it says what is hurting my score. It says:

• There are one or more accounts with a major derogatory event in your credit file,
• The age of accounts in your credit file,
• There is insufficient information, or no account history, for credit card accounts,
• and There is insufficient information, or no account history, for mortgage accounts>

I recently applied and was approved for a Capital One secured credit card. A few days ago I paid the $49 deposit. I would like to know HOW SHOULD I USE THIS CARD? PLEASE HELP!!! Thanks!!

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Congratulations!  

Can someone help Lthomas ~ Please!   Thanks!

[Wolf3]

I would use it up to 80% of your CL, and PIF each month.   If you can afford it, add more money to the deposit.   When you are ready to apply for more credit.   PIF before statement date, for low utilization.  Of course, NEVER be late.

Thats how I did it.

[Anonymous]

Don't go over your limit.

PIF every month.

Never be late.

[missji]

Use what you can COMFORTABLY afford to pay in full each month, up to (vets chime in here)% of your CL. BUT by no means should you charge 80% (or any amount for that matter) if you can't pay it off.

[Anonymous]

^Good suggestion.  The best way to stick to it is to only use it when you know you can (and will) go home and pif.  It's a good habit to develop especially if you've had trouble controlling your credit usage in the past.

[Anonymous]

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@Anonymous wrote:

Don't go over your limit.

PIF every month.

Never be late.

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+1

[Lthomas356]

Thanks all I received my card today. I'm going to add more to card very soon. I have a $200 CL but I want it to be $500. My goal is to wait until Jan and apply for Wal-mart store card and/or JCP.

[Anonymous]

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@Lthomas356 wrote:
Thanks all I received my card today. I'm going to add more to card very soon. I have a $200 CL but I want it to be $500. My goal is to wait until Jan and apply for Wal-mart store card and/or JCP.

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Good ~ that you have a goal ~  Take care of your baby!