Hello everyone,
I received my first credit card (cap one) the other day.
I’m looking for the pointers on using the credit card for maximum benefit to my fico scores and CLIs. I want to make sure that I don’t pry to any myths.
It’s an unsecured card with a $300. limit. Should I max the card out every month then pay off as soon as I get the statement? My understanding is that then it will post on credit reports with $0 balance, please correct me if I’m wrong. My thinking is that if I use the max limit, cap one will see I can handle the limit. I will always have the cash on hand to pay the balance in full before using the card.
I tried doing a search here and couldn't find anything that gets into detail on this subject. Please feel free to give any suggestions, dos or don’ts. Maybe we can get a sticky post for members just starting out with credit cards for doing things the right way 
Thanks everyone
@Mark_MM wrote:Hello everyone,
I received my first credit card (cap one) the other day.
I’m looking for the pointers on using the credit card for maximum benefit to my fico scores and CLIs. I want to make sure that I don’t pry to any myths.
It’s an unsecured card with a $300. limit. Should I max the card out every month then pay off as soon as I get the statement? My understanding is that then it will post on credit reports with $0 balance, please correct me if I’m wrong. My thinking is that if I use the max limit, cap one will see I can handle the limit. I will always have the cash on hand to pay the balance in full before using the card.
I tried doing a search here and couldn't find anything that gets into detail on this subject. Please feel free to give any suggestions, dos or don’ts. Maybe we can get a sticky post for members just starting out with credit cards for doing things the right way
Thanks everyone
You should not max the card off and pay it after the statement cuts... I would recommend using about half of the available credit limit, and paying it off completely except for $10 worth of charges before the statement cuts...
If you let the statement cut with it maxed out, that will report to your credit report and you'll get dinged for being maxed out.
FICO 9: 
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.
Goal: Gardening!
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.
Goal: Gardening!
@Mark_MM wrote:Hello everyone,
I received my first credit card (cap one) the other day.
I’m looking for the pointers on using the credit card for maximum benefit to my fico scores and CLIs. I want to make sure that I don’t pry to any myths.
It’s an unsecured card with a $300. limit. Should I max the card out every month then pay off as soon as I get the statement? My understanding is that then it will post on credit reports with $0 balance, please correct me if I’m wrong. My thinking is that if I use the max limit, cap one will see I can handle the limit. I will always have the cash on hand to pay the balance in full before using the card.
I tried doing a search here and couldn't find anything that gets into detail on this subject. Please feel free to give any suggestions, dos or don’ts. Maybe we can get a sticky post for members just starting out with credit cards for doing things the right way
Thanks everyone
My answer will be a bit different but have the same end goal. You should use it however you want. Your cap 1 at best will be enrolled in the credit steps program, which (as long as you make your minimum payment) is an automatic increase. Dont try to impress Cap 1 because it wont get you anywhere. This isnt a card that will grow with you. The idea at this point is to show other CC companies a few years from now that you can be responsible with your credit. This is acomplished more with those little green ok boxes that come with age. Use it a lot or use it a little, just make sure when the time comes to apply for a new card, the limit that is reported is below 10% on one card. Welcome to the world of credit, youre ahead of the game in some aspects, but youre aware that there are better products out there, which is prob dangerous. A solid report takes time to build. 6 months from now I would apply for another unsecured card. hopefully by then you could get a CL in the 1000 dollar range. Rinse and repeat. Once you have a few solid TL established (2+) years the big banks will start letting you in. To sum up. who cares how you treat cap one cause they wont treat you very well. use them as a tool. A means to an end.
Starting Score: 617 EQ 10-17-11
Use it as you wish but pay to a $10 balance before the statement cuts. If you let a big balance cut it will report a high UT hurting your scores.