Question about spending limit

[JasonKR]

Hello guys

I recently got approved from BofA Secured Credit Card (My first CC!) with CL of $300 and spending around with it.

Got some questions for you guys,

1) I pay balance every month in full, do I need to spend 30%($100) of my CL($300)? or does 30% rule just apply when I carry blance to next month? or am I good to use till reach $300 CL?

2) I paid some of balance before closing date, Can someone explain me how it's going to effect on credit score and credit limit? does it resets CL for that month?

Thanks! 

[snowkitty]

Congrats on the approval! I have the boa partial secured cc with a 500.00 limit. I pay it off each week so that I don't have to worry about what percentage to use. I think the 30% only matters if you let it hit your credit. If you have a checking account with them, it's so easy to transfer a payment to the card and it normally posts that night. The boa card opened all of my credit doors when it hit my credit. It showed that someone out there trusted me and I have gotten all the cards in my signature line since then!

[JasonKR]

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@snowkitty wrote:

Congrats on the approval! I have the boa partial secured cc with a 500.00 limit. I pay it off each week so that I don't have to worry about what percentage to use. I think the 30% only matters if you let it hit your credit. If you have a checking account with them, it's so easy to transfer a payment to the card and it normally posts that night. The boa card opened all of my credit doors when it hit my credit. It showed that someone out there trusted me and I have gotten all the cards in my signature line since then!

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Thanks!

I checked credit karma and score was 713! (good score to start off I guess?)

I currently have non-BofA bank account and I just enrolled in their automatic bill payment & using my credit union bill payment feature.

could you paraphrase  "30% only matters if you let it hit your credit."?

[Gunnar419]

The amount that matters is (in most cases) the balance you have on the card on the day your monthly statement is issued. That's the day you want to have 30% or less.

Most people have found that it helps to have something on you card on that day -- maybe as little as 1% utilization, but something to show activity. But show that you're using no more than 30% of your total available credit.

Great start on your journey!

[JasonKR]

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@Gunnar419 wrote:

The amount that matters is (in most cases) the balance you have on the card on the day your monthly statement is issued. That's the day you want to have 30% or less.

Most people have found that it helps to have something on you card on that day -- maybe as little as 1% utilization, but something to show activity. But show that you're using no more than 30% of your total available credit.

Great start on your journey!

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So I will be okay as long as I keep paying them before monthly statement is issuesd right?

Then maybe leave $10 till monthly statement issues then pay it on statement issue day.

Helped a lot! Thanks!

[OhioCPA]

About the only time reported balance will matter is when you are applying for new credit or increases to your current credit limit on a card. I would wait a few months, maybe six, before thinking about another card.

Since this is a BoA card I would make sure you pay the entire balance every month. This will help when it comes time to unsecure the card. One payment a month, either after the statement cuts or just before. Personally, I would wait for the statement to cut then pay the balance a few days after it cuts. Then when you are ready to apply for another card or some other form of credit, I would make sure no more than 1-9% (up to $26.99) reports on the statement. This will help to maximize your credit score.

[SnackTrader]

You've got the right idea, Jason. But also, Ohio is right about waiting 6 months before applying for anything else. Give the secured card time to age. In the meantime, utilization doesn't really matter. But when you get ready to apply, get that util down to 1-9% before the statement cuts. And then pay the rest off after the statement cuts.

[JasonKR]

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@OhioCPA wrote:

About the only time reported balance will matter is when you are applying for new credit or increases to your current credit limit on a card. I would wait a few months, maybe six, before thinking about another card.

Since this is a BoA card I would make sure you pay the entire balance every month. This will help when it comes time to unsecure the card. One payment a month, either after the statement cuts or just before. Personally, I would wait for the statement to cut then pay the balance a few days after it cuts. Then when you are ready to apply for another card or some other form of credit, I would make sure no more than 1-9% (up to $26.99) reports on the statement. This will help to maximize your credit score.

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Awesome, Thanks

[JasonKR]

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@SnackTrader wrote:
You've got the right idea, Jason. But also, Ohio is right about waiting 6 months before applying for anything else. Give the secured card time to age. In the meantime, utilization doesn't really matter. But when you get ready to apply, get that util down to 1-9% before the statement cuts. And then pay the rest off after the statement cuts.

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Understood, I will just wait till BofA offers me unsecured card!

Thank you for the help guys!