If it were me, for the first 3 to 6 months, I would keep the balance that is reported to the credit bureaus less than $50. This way you are keeping your utilization down. You can spend more than $50 per month on the card, but want what is reported to be less than 10% utilization. This way you are not dinged for excesive credit utilization.
Also if it were me, I would suggest to treat your credit card as if it were a debit card. I say this because often times we get caught up on 'minimum payments' and pay unecessary interest.
HTH = Hope This Helps
I'm just starting to build credit and I'm trying to obtain high limit CC's for a number of reasons. I have a secured cc for $500 with Capital one. Which method is best to achieve my goal? Should I spend the entire balance every month and pay it in full before the due date. Or should I just spend under $50 per month and pay it before the due date every month. Or is there any other recipe for success I'm unaware of that someone can hip me to??? I'd really appreciate any feedback...Thx!
Hi Anthony. Can you tell us more about why you want to have high limit CCs? And also what your timeframe is for this goal?
A person can have a perfect 850 score with three cards having only a $500 limit each. Thus higher credit limits do not in themselves help you build a higher score.
Quickly getting several high limit cards (e.g. 5 cards with a 20k limit) is almost impossible for a person who's only account is a 1-month old $500 CL.
Capital One is the worst when it comes to extending a higher credit line to you. I have never missed a payment, and I have had that QuickSilver for over 3 1/2 Years ( My 2nd Credit card!). I agree with the other member that they will only extend it if you use the card liberally.