Setting Realistic Expectations

[MasonK]

MC Platinum.

[Anonymous]

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@MasonK wrote:

MC Platinum.

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You should call or get on chat and ask if you have an offer to PC that to a QS. You could be earning rewards on all your purchases. There is almost always an offer for the conversion. My DH messed up and let his card go 60 days past due almost a year ago, jsut a few months after we opened it. He still can't get a CLI (waiting for that 1 year mark in May) but he was still able to convert to a QS.

As for expectations, I think slow and steady is the best plan of attack for growing. You have 2 cards that will grow with you. Ask for CLIs regularly. When it is time for new apps, thoughtfully consider which cards will be best for your spend and will stand the test of time to still be useful down the road. Your use and pay plan looks fine, but IMHO there is no need to pay off every time it hits  $x.  Just pay it off each month, or follow previous advice if you want to optimize your scores.

[MasonK]

The usage/payment thing got me tripped up when I started because I thought that the reported High Balance played into the scoring. I've since learned that High Balance has nothing to do with High Utilization (that's a funny story in and of itself I'll write about another time), but nevertheless, I've still paid it off at a certain point. While I don't like writing a check for $350, I REALLY don't like writing ones for $1000.

I know that these are amounts I've paid in cash in smaller amounts over a ton more transactions, but it's the psychology of paying ALL my meals, ALL my insurance, ALL my everything in a single monthly transaction to the lenders that I get hung up on. I haven't had a credit card by choice in 20 years because I liked paying cash for everything (even before my credit was completely destroyed).

I've been thinking about the PC on CapOne, but I had been waiting for the sixth statement to cut in May. I guess there's no harm in calling them since a PC isn't a new line. When I got my Discover IT, I was really excited about 5% back on things like gas and wholesale clubs, so if I can get another cash back card in the stable, I'd be even happier about that.

Again, I thank everyone for their advice here, and on all the other threads for eneryone's assistance.

[Anonymous]

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@yfan wrote:

Your credit limits are a result of a few factors: your credit history, your income, and a particular lenders' risk exposure policies, for starters. This means that some lenders are more sensitive than others to your applications for credit from other lenders, some lenders are more generous with credit lines, while others may be more favorable on rates and rewards. So what you can grow to is really not up to anyone else to say.

I should mention here though that while it is nice to have large lines and rewards on credit cards,  the main purpose of using credit cards responsibly is to reduce the interest you pay on the much bigger loans in life. Mortgages and HELOCs, car loans, student loans (or student loan refinancing), and the like. Build your credit responsibly and patiently and you can save more money on these loans in just a year than even the most generous credit card rewards can give you.

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Solid advice.

[Anonymous]

Welcome to myFICO MasonK and thanks for sharing your story with us. For starters, I think you have a good plan and there is good advice in your thread. There are two points I feel the need to reiterate: patience and time. They can be your best friends or your worst enemies. It's up to you to utilize them to your advantage. Set short and long term goals and stick to them. Research the cards you want and plan your applications. 

If your Cap1 credit card has an annual fee, please contact them & ask if you can upgrade to one without it. Preferably as QS so you can have an everyday card after the double cash back promo runs out on your IT. 

Cap 1 credit cards are eligible for CLIs every 6 months. IT can be a little tricky. Some people are on a 30, 60, or 90 day CLI cycle. Others, such as myself, didn't receive any SP CLIs during the first year. Like with everything credit, ymmv.

Good luck on your credit journey!

[grillandwinemaster]

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iheartwings wrote: 

What I would first recommend is that you think about what your credit goals are. They don't have to be specific, but they shouldn't be so broad as to leave you without a general framework to rebuild your credit. Many folks here want better credit to buy a house, refinance debt, etc., etc., etc. For me, I wanted to rebuild to eventually buy a house, but my goals have changed...

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Excellent advice Wings!

It's very important to have a framework, or purpose to rebuilding.  So many people don't have a specific credit goal in mind and apply for everything under the sun! After a few months, there AAofA is trashed, and they regret what they have done. 

Also, as wings stated, goals can and do change. With a goal in mind, you have a direction to go in. 

Best credit wishes to you, OP!