Understanding the complexities of credit card utilization!™

[Anonymous]

Waz up everybody,been a lurker for awhile and decided to come out of my shell! I applied for a Capital One secured card with a 200 dollar credit limit. My understanding is that I want to shoot for a 1-9% utilization rate,9% of 200 should be around 18 dollars of spending per month.So if my bill statement is around the 8th of every month,should i spend the $18 early in the monthly cycle and pay it out in full before my statement due date? Is this essential way credit utilization is addressed,any and all positive advice would be highly appreciated,Thanks.

[Closingracer99]

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@Anonymous wrote:

Waz up everybody,been a lurker for awhile and decided to come out of my shell! I applied for a Capital One secured card with a 200 dollar credit limit. My understanding is that I want to shoot for a 1-9% utilization rate,9% of 200 should be around 18 dollars of spending per month.So if my bill statement is around the 8th of every month,should i spend the $18 early in the monthly cycle and pay it out in full before my statement due date? Is this essential way credit utilization is addressed,any and all positive advice would be highly appreciated,Thanks.

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You can spend $600 on that card as long as when the statement cuts it shows you let a $18 dollar balance show on your statement

[09Lexie]

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@Closingracer99 wrote:

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@Anonymous wrote:

Waz up everybody,been a lurker for awhile and decided to come out of my shell! I applied for a Capital One secured card with a 200 dollar credit limit. My understanding is that I want to shoot for a 1-9% utilization rate,9% of 200 should be around 18 dollars of spending per month.So if my bill statement is around the 8th of every month,should i spend the $18 early in the monthly cycle and pay it out in full before my statement due date? Is this essential way credit utilization is addressed,any and all positive advice would be highly appreciated,Thanks.

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You can spend $600 on that card as long as when the statement cuts it shows you let a $18 dollar balance show on your statement

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OPs CL is $200, I believe you meant up to $200, not $600 

[Closingracer99]

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@09Lexie wrote:

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@Closingracer99 wrote:

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@Anonymous wrote:

Waz up everybody,been a lurker for awhile and decided to come out of my shell! I applied for a Capital One secured card with a 200 dollar credit limit. My understanding is that I want to shoot for a 1-9% utilization rate,9% of 200 should be around 18 dollars of spending per month.So if my bill statement is around the 8th of every month,should i spend the $18 early in the monthly cycle and pay it out in full before my statement due date? Is this essential way credit utilization is addressed,any and all positive advice would be highly appreciated,Thanks.

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You can spend $600 on that card as long as when the statement cuts it shows you let a $18 dollar balance show on your statement

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OPs CL is $200, I believe you meant up to $200, not $600 

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Yeah .. I thought he said 600

Yeah he can spend $200 as long as he cuts it down to 18 when statement cuts 

[mongstradamus]

Just once an month buying lunch or something should suffice for proper utilization 

[Closingracer99]

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@mongstradamus wrote:

Just once an month buying lunch or something should suffice for proper utilization 

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TBH wouldn't going to the Max and making sure it doesn't post more then $20 be much better to show usage?

[Anonymous]

Thanks for the insight,so basically regardless of what I spend pay majority of it off and only let an 18 dollar balance carry over to the next statement?

[Closingracer99]

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@Anonymous wrote:

Thanks for the insight,so basically regardless of what I spend pay majority of it off and only let an dollar balance carry over to the next statement?

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Yes  

While posting $0 is better then Maxed out I would make sure between $1-$18 is posted each month. 

[mongstradamus]

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@Closingracer99 wrote:

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@mongstradamus wrote:

Just once an month buying lunch or something should suffice for proper utilization 

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TBH wouldn't going to the Max and making sure it doesn't post more then $20 be much better to show usage?

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I was think like deli sandwich and snapple for lunch that shouldn't be that much. I think utilization is only important if you are going to apply for something soon imo.As long as you don't pay late you should be fine.

[gdale6]

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@Anonymous wrote:

Waz up everybody,been a lurker for awhile and decided to come out of my shell! I applied for a Capital One secured card with a 200 dollar credit limit. My understanding is that I want to shoot for a 1-9% utilization rate,9% of 200 should be around 18 dollars of spending per month.So if my bill statement is around the 8th of every month,should i spend the $18 early in the monthly cycle and pay it out in full before my statement due date? Is this essential way credit utilization is addressed,any and all positive advice would be highly appreciated,Thanks.

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If you have not yet received the card you can send a secure message asking when the statement will cycle, what you do is use it until 4 days before statement cuts (you dont want to get nailed with a charge posting the night of the statement cut), then one day before the statement cut date you would pay it all with the exception of 18.00, then your 18.00 reports, pay this within a few days of the statement cut and repeat it all again.