Are the dates when a statement cuts/reports the same for everyone that has that particular card or does it vary person-by-person depending on when they were approved, processed etc?
I just got approved for two cards (USAA secured and a Best Buy Rewards unsecured) and I want to practice proper utilization on them.
They vary. Some cards will let you pick your date.
I think with the new laws the due date has to be consistent, so the statement date will vary some.
Thanks wolf. So I guess the safe bet is to call and ask them when my statement gets created once I get the cards so i know how to proceed.
So for example if the statement cuts on the 25th of each month and they usually report during the following days, I should make sure to PIF and leave a 7% balance of my combined CLs by the 23rd to be safe. Then pay the remainder when I get the bill, then rinse and repeat the next month. Ham I doing this rite?
Some (like HSBC) report at end of the month regardless of the statement date, so you need to find that out.
This strategy will keep the utilization low. I don't know if there is a right.
I am rebuilding with 2 secured cards. One has 0% APR for 6 months. I am keeping that at 95% utilization constantly until the interest changes, then I will PIF. The other card, I run to close to max and pay in full by due date. I do pay minimum payment online after statement cuts (for safety) and the PIF a couple days before due date. I think you need to show you can handle credit to build it. I am now getting offers to apply for rewards card. I will pay everything to low utilization in the month before I plan to apply for anything, but I don't see the need to do it every month.
I know I am in the minority with this opinion, but that is how I am doing it.
Well, I was planning on sock drawering the HSBC card because its a lower limit, do the 7% util for a month or two on the USAA card, then open up a CU secured card for 1,500-2,000 and a savings account that I will use as my main savings account so I can establish a relationship with them for future car/home loans if possible. As well as open other cards along my journey. I burned almost all prime banks when I was young (bofa, discover, citi), so I don't have many options left.
HSBC does not like to be ignored. I suggest you run small charge or recurring monthly bill through there.
When you get the CU secured card, Use it. Good Luck