I've rebuilt my credit and i just got my first new CC in 16 years! Need guidance please

[Anonymous]

First post here and i'm excited!  After many years of poor judgement and lack of credit knowledge, i've finally kicked my butt into gear, got smart, and removed all derog's off my account.  My credit score up from a high 500's to a 742 (according to my new Capital One credit card app [uses Transunion]).  

Now i need some guidance.  My new Capital One Quicksilver credit card has a limit of $3000.  My rent is due for next month and the monthly payment is $2700 (i'm sharing the place with several friends).  I was planning to pay the entire rent on my credit card and either pay it off immediately once it posts on my Capital One app or pay it off once i receive my bill.  I know it's not good for my credit score to maintain a high credit card balance, but my intentions are to pay it off immediately.  Please advise if this is a good idea.

Thank you!

[Anonymous]

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@Anonymous wrote:

First post here and i'm excited!  After many years of poor judgement and lack of credit knowledge, i've finally kicked my butt into gear, got smart, and removed all derog's off my account.  My credit score up from a high 500's to a 742 (according to my new Capital One credit card app [uses Transunion]).  

Now i need some guidance.  My new Capital One Quicksilver credit card has a limit of $3000.  My rent is due for next month and the monthly payment is $2700 (i'm sharing the place with several friends).  I was planning to pay the entire rent on my credit card and either pay it off immediately once it posts on my Capital One app or pay it off once i receive my bill.  I know it's not good for my credit score to maintain a high credit card balance, but my intentions are to pay it off immediately.  Please advise if this is a good idea.

Thank you!

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Welcome to the forums.

If you have the ability to pay your rent with the card and will pay it off immediately, go for it.  Lots of cash back there and it won't hurt one bit.

[Anonymous]

Thanks.  Should i pay it off immediately using my Capital One app?  Or should i wait for my monthly bill to arrive?

[Anonymous]

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@Anonymous wrote:

Thanks.  Should i pay it off immediately using my Capital One app?  Or should i wait for my monthly bill to arrive?

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You don't have to pay it off immediately.  Keep in mind that once you get your statement and if it shows a balance that's what will report to the CRAs.  Your score will take a temporary hit for having a high balance (CapOne won't care as long as you pay it by due date).  So you have to decide which you prefer.

[Anonymous]

My second objective is to get my credit card limits as high as the sky.  Would charging the $2700 rent and paying it off immediately be a good arguement for requesting a higher limit in the future?  What other strategies would you recommend for increasing credit score and increasing revolving credit limit?

[Anonymous]

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@Anonymous wrote:

My second objective is to get my credit card limits as high as the sky.  Would charging the $2700 rent and paying it off immediately be a good arguement for requesting a higher limit in the future?  What other strategies would you recommend for increasing credit score and increasing revolving credit limit?

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Credit card companies definitely like to see use so the more you use them then in most cases the better your chances for credit limit increases.  If this is your only credit card then you need to look to add a couple more when you can as 3 cards typically gives you the best chance at increasing your score.  Other then that, time is your friend and as you use this and other cards in the future your scores will rise.  Try not to rush and go overboard as that's when. Is takes happen that can damage your scores for a long time. It's a cliche but true  that credit isn't a race so take your time and be smart.  Before long you'll have very good scores and limits that reflect your file and income.  Good luck 

[icyhot]

I would definitely pay it off as soon as you can before the statement cuts. There's a huge difference between reporting 0% UTL and 90% UTL

[Anonymous]

I would also make sure:

A) There is no fee for paying with a credit card.

B) Your friends will actually pay on time - because if they don't, it's you who will get hit with the interest charges and high utilization %.

Regardless of how you pay, I would make it a routine to collect from them before you pay so you don't get burned. If they see you are okay with accepting late payments, they will likely continue to do it.

[Anonymous]

I'm new to this still too, but I'd pay it off as soon as it posts. On your credit report it will show the high balance existed so the proof of usage is there. And if you pay before the statement cuts you won't have your score drop for utilization...even though you'd get them back, I personally wouldn't want to lose them in the first place if I didn't have to. I've noticed that my highest reported balance always shows for Cap One. 

[sparklerd34]

you can pay if off before or at the statement. I guess if youre trying to app your probably want to pay off right away. But if youre not shopping for a new card than go for it you will earn the cash back and capital one will love you as long as you keep up with your payments. Welcome to the Forum good information and support here. Up until last year i had been 13 years without a card after BK