Whats the best way to use my new CC?

[Anonymous]

I am in the process of rebuilding my credit. I have applied and been accepted for and Orchard bank card. While surfing through the post here (which are friggin AWESOME) I have come across some advising to leave a balance of less than 9% of the limit. Does this apply to only those with more than one CC? Being that I only have one card(baby steps!), would paying off the balance fully each month be most beneficial in raising my score, or should I leave the <9% balance to show that I am actually using the card. For the single card holder such as myself, does it even matter?

[Revelate]

It really doesn't matter at this point.  Pay on time, every time, and your score will continue to get better with time.

The numbers you see thrown around as to whether to carry a balance or not, aren't really relevant unless you're applying for a big ticket item or even another credit card: that's instant-in-time maximization of FICO score.

What you (or I for that matter) need, is positive credit history, and we get that by managing what we have well.  In general I'd suggest either paying in full each month, or certainly paying more than the minimum, but if you get stuck for whatever reason one month, just pay the minimum.  The important part (like 35% of your score) is just paying what you owe each and every month, and where we're both at in a building / rebuilding stage, there's really no reason to make it more complicated than that.

[Anonymous]

Thanks for replying! I got the card as a step to help rebuild. Im 30 and have never even had a CC I am excited to get this party started (LOL). My intention is to use the card for gas and gas alone. I will get fancy once Ive figured out all the technicalities of being a CC holder.

[Anonymous]

Paying in Full each month, so you don't have interest charges should be the goal.  And NEVER BE LATE.   

All the rest does not matter much at this time.

[Creditaddict]

Couple things:

1. Never carry a balance and pay interest on it.

2. If this is your "ONLY" Card and you are looking to build credit and apply for another 1-2 cards in 3-6 months and hopefully a big kid card in a year or so as you work on the other negative things in your CR you need to obtain the 9% or lower. and the confusion is that to get that 9% you would pay say $45 our of a $50 balance and you pay interest on that $5.  That is not what people are saying when they say that, If you have only 1 credit card and you are trying to rebuild as others have posted yes most likely the history and on time payments will build your score up slowly but more importantly when in rebuild mode is showing other creditors you can handle more then say a $300 limit and although bank A that issues you the $300 limit things you are doing great because when the bill comes and it is $275 you pay it in full, other banks that you go to apply with will only see that $275 our of $300 on your credit report and think you are not doing well, you are not even able to pay a $275 balance, so what is suggested while in "REBUILD" mode is you find out when your closing date is on the statement (lets say the 1st of each month) so you would go in and make a payment of say $250 out of the $275 maybe a week before on the 25th and then your statement cuts on the first and if you have not used your card since that payment a $25 balance will report to your credit and they will send out statement for the $25 and you would then go ahead and pay in full.

When you have more then one card, the advice changes just a little bit but lets handle one thing at a time.  Also if you know you won't apply for 6 months for another card, you could really 4-5 months just pay when your bill comes as others say and then the month before new application, make sure you get it reporting less 9% balance of credit line.

[lithium78]

---

@Anonymous wrote:

Thanks for replying! I got the card as a step to help rebuild. Im 30 and have never even had a CC I am excited to get this party started (LOL). My intention is to use the card for gas and gas alone. I will get fancy once Ive figured out all the technicalities of being a CC holder.

---

I just wanted to offer you some encouragement.  I was 30 too, when I started rebuilding my credit.  It's a long process, but the people on this board really can help.

With rebuilder cards, it really is best to PIF for all cards.  The interest can be a killer if you carry a balance of any kind.  Just think of your CCs as glorified debit cards.

[haulingthescoreup]

---

@lithium78 wrote:

---

@Anonymous wrote:

Thanks for replying! I got the card as a step to help rebuild. Im 30 and have never even had a CC I am excited to get this party started (LOL). My intention is to use the card for gas and gas alone. I will get fancy once Ive figured out all the technicalities of being a CC holder.

---

I just wanted to offer you some encouragement.  I was 30 too, when I started rebuilding my credit.  It's a long process, but the people on this board really can help.

With rebuilder cards, it really is best to PIF for all cards.  The interest can be a killer if you carry a balance of any kind.  Just think of your CCs as glorified debit cards.

---

+1

And I didn't have a CC in my own name until I was in my late forties. Slow learner, lol.

[Anonymous]

You all are so very awesome! THANKS!

[LS2982]

---

@Anonymous wrote:

I am in the process of rebuilding my credit. I have applied and been accepted for and Orchard bank card. While surfing through the post here (which are friggin AWESOME) I have come across some advising to leave a balance of less than 9% of the limit. Does this apply to only those with more than one CC? Being that I only have one card(baby steps!), would paying off the balance fully each month be most beneficial in raising my score, or should I leave the <9% balance to show that I am actually using the card. For the single card holder such as myself, does it even matter?

---

You really need to get a 2nd Visa/MC card. Also keep 1 PIF and leave a small balance on the other.

[2NE1]

---

@LS2982 wrote:

---

@Anonymous wrote:

I am in the process of rebuilding my credit. I have applied and been accepted for and Orchard bank card. While surfing through the post here (which are friggin AWESOME) I have come across some advising to leave a balance of less than 9% of the limit. Does this apply to only those with more than one CC? Being that I only have one card(baby steps!), would paying off the balance fully each month be most beneficial in raising my score, or should I leave the <9% balance to show that I am actually using the card. For the single card holder such as myself, does it even matter?

---

You really need to get a 2nd Visa/MC card. Also keep 1 PIF and leave a small balance on the other.

---

Glad to see someone asked the same question I had, I just received two re-builder CCs last week, they're not showing on my CR yet but I'll keep in mind to PIF on one and leave small balance on the other, sweet!