My first credit card. Wanting to build good credit

[Anonymous]

Hello everyone. I recently got my first credit card (about the middle of last month). Its a US Bank Platinum card, with a $1000 limit. About a week after that my father added me to his capitol one card. So i now have two cards, but i do not use the capitol one, only my US Bank card. I just have a few questions about how much i should spend max on my card, and some advice on  building my credit to a good score. So far i have used about $500 on my card. I appreciate any tips, thanks. 

[Anonymous]

Welcome to the forums! Having a $1k card in your name is a great start. Keep your utilization below $300 (or preferably under $100 if possible) to work on your score. You should be able to pay mid-cycle to help that. One side note on the Cap1 card, I hope their utilization is low and payments are good or that may do more damage to you than good...

[Anonymous]

Wow, i didn't know i wasn't supposed to only use up max $300! I already used up about $500, my mistake! I won't be using the Capitol one card as it's pointless for me. My father just added me onto it for emergencies. Will paying the whole $500 at the end of the month up my score more? or will paying the minimum payment do me better?

[AverageJoesCredit]

Its ok to use your card up to its limit just be sure to pay it by its due date. If you cant pay it all back before the due date, also known as paying in full , pif, as suggested by GHS, you want to try and not let more than 30% report or preferably below 10% to help maximize your score. Its perfectly fine to make multiple payments per month but just do whAt is most comfottable to you. Most important is paying on time!! Best of luck and congrats on your first credit card also WELCOME TO THE FORUM

[Anonymous]

Ok, wonderful! Thanks for the advice and tips.

[HeavenOhio]

US Bank is different than most lenders. They report your account balance to the credit bureaus on the first of the month. Try to be below 28.9% of your llimit (or preferably below 8.9% of your limit) on the first. 28.9% is considered responible borrowing. 8.9% makes the most out of the utilization portion of your score.

During the rest of the month, use the card as you see fit. Making multiple payments per month can help you out.

Most banks are like Capital One in that they report the statement balance on the statement date. For those cards, you'd want to bring your balance down just before the statement cuts.

[Gregory1776]

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@AverageJoesCredit wrote:
Its ok to use your card up to its limit just be sure to pay it by its due date. If you cant pay it all back before the due date, also known as paying in full , pif, as suggested by GHS, you want to try and not let more than 30% report or preferably below 10% to help maximize your score. Its perfectly fine to make multiple payments per month but just do whAt is most comfottable to you. Most important is paying on time!! Best of luck and congrats on your first credit card also WELCOME TO THE FORUM

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+1 What he's saying is you can use the total limit on your card, but its advisable to pay it down to below 300 (30% limit) but preferably 100 (10%) BEFORE the statement closing date. Statememt closing date is different than your due date. You will see this all on your first statement.  I'd say only let at most $10 post to the statement, and try and pay down your balance until you get a statement. 

Good luck!! 😊

[Gregory1776]

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@HeavenOhio wrote:

US Bank is different than most lenders. They report your account balance to the credit bureaus on the first of the month. Try to be below 28.9% of your llimit (or preferably below 8.9% of your limit) on the first. 28.9% is considered responible borrowing. 8.9% makes the most out of the utilization portion of your score.

During the rest of the month, use the card as you see fit. Making multiple payments per month can help you out.

Most banks are like Capital One in that they report the statement balance on the statement date. For those cards, you'd want to bring your balance down just before the statement cuts.

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Whats with the .9's the CB's round up....🤔

[HeavenOhio]

9% and 29% are thresholds. If you're at exactly 9% or 29%, you should be fine. But 9.00000001% will round up to 10% and 29.00000001% will round up to 30%. Sticking to percentages ending in x8.9 keeps you safe.

Also, just to reiterate, the statement closing date isn't the relevant date with US Bank. You need to be at your desired balance on the first of the month.

[Shooting-For-800]

If you got appoved for a US Bank unsecured card on your own, I would apply for a Capital One QuickSilver while you have a low balance.

Ideally, you want 3 major credit cards.  Rotate usage so each gets used a paid.

you can use it as much as you want as long as you dont go over your limit.  

if you dont want to pay any interest (always the goal regardless of reward points or anything else) pay in full before due.

always pay at least 3 times your minimum payment no matter what.

The ulitization rate is no biggie UNTIL you want to apply for credit.

BEFORE applying for credit, get under 10% utilization and stay there until it hits your credit report.

If that is too complicated, make payments every week and PIF before every due date.

Once you do that a few months, then start paying in full BEFORE the statement cut date so the CR reports $0 balance and a $500-$600 highest balance.