Help with using my new credit card

[jordanhand]

I was recently approved for my first two credit cards the capital one quicksilver one card and the capital one platinum card. I know this might sound stupid but what is the proper way to use these cards? Ive never had cards before and Im just trying to establish some credit., Ive read so many different things; that I should carry and balance and then some people say I should never have a balance... The credit line for both cards is $300.00 I was also reading that I should use only 10% per month? So I should only ever charge $30.00 per month on this card? 

Thank you!

[Anonymous]

Use them - how much you put on them is up to you, but make sure they are paid in full each month well before the due date for maximum effectiveness. 

[Imperfectfuture]

I have obtained 3 cards, one is the capital one quicksilver one. The BEST way to use.

My statement for capital one cuts on the 12th. Legacy visa cuts on the 7th or 8th. Alaska USA cuts on the 27th or 28th.

Use the capital ine cards heavily (especially for the cash back). However, you want only ONE card reporting. So, shortly before the STATEMENT cut date, pay down to less than 10% of all cards. My total credit limit is 2250. So I want less than 225 reporting on a card. BUT, I want less than 30 % on any card, so if I choose capital one to report, that would be less than 90. If Alaska USA reports, then that would be less than $150, AND ALL OTHER CARDS REPORT 0 (paid before statement cuts).

This is the best for utilization, I have total util around 5%. When you are ready to app again (apply for new card, had pull for credit limit increase, etc.), pay down the reporting card to less than 10%.

In your case, you would have ONE card reporting less than $60, but could charge like $900 per card, as long as you pay off before statement cut date (note, capital one won't let payment through till pending charges completed, so I would stop charging at least a week before the statement cuts, then pay whatever amount at least 3 days before statement cuts). When it's time for your cli increase with capital one, pay that 5th statement down to less than $30 on one card, and 0 on the other. Also do that when your scores have climbed and you want to app for Barclays or some other card.

[jordanhand]

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@Imperfectfuture wrote:

I have obtained 3 cards, one is the capital one quicksilver one. The BEST way to use.

My statement for capital one cuts on the 12th. Legacy visa cuts on the 7th or 8th. Alaska USA cuts on the 27th or 28th.

Use the capital ine cards heavily (especially for the cash back). However, you want only ONE card reporting. So, shortly before the STATEMENT cut date, pay down to less than 10% of all cards. My total credit limit is 2250. So I want less than 225 reporting on a card. BUT, I want less than 30 % on any card, so if I choose capital one to report, that would be less than 90. If Alaska USA reports, then that would be less than $150, AND ALL OTHER CARDS REPORT 0 (paid before statement cuts).

This is the best for utilization, I have total util around 5%. When you are ready to app again (apply for new card, had pull for credit limit increase, etc.), pay down the reporting card to less than 10%.

In your case, you would have ONE card reporting less than $60, but could charge like $900 per card, as long as you pay off before statement cut date (note, capital one won't let payment through till pending charges completed, so I would stop charging at least a week before the statement cuts, then pay whatever amount at least 3 days before statement cuts). When it's time for your cli increase with capital one, pay that 5th statement down to less than $30 on one card, and 0 on the other. Also do that when your scores have climbed and you want to app for Barclays or some other card.

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Okay just to make sure im understanding correctly, a "reporting card" is a card with a balance? 

example:

I use my capital one quicksilver one card and charge $250 on it, before the card reports I want to pay off $220 of it leaving a balance of 10% reporting?

and with my capital one platinum card i could charge $100.00 but before it reports I would pay off the whole balance?

Sorry if I got this totally wrong I just want to really understand so that I can use it responsibly

thanks!

[Imperfectfuture]

You are correct. Usually (though some variants come with the higher echelon cards, we don't have to worry 'bout them yet) the reporting balance is the statement balance. For BEST. Scoring, that is what you want to focus on. For higher cli's, you want to charge the heck out of the card.

So your above summation is correct. Just use the cards a lot before the statement cuts.

[ERoosky99]

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@jordanhand wrote:

I was recently approved for my first two credit cards the capital one quicksilver one card and the capital one platinum card. I know this might sound stupid but what is the proper way to use these cards? Ive never had cards before and Im just trying to establish some credit., Ive read so many different things; that I should carry and balance and then some people say I should never have a balance... The credit line for both cards is $300.00 I was also reading that I should use only 10% per month? So I should only ever charge $30.00 per month on this card? 

Thank you!

---

From what I have learned, the best thing to do is to keep your utilization below 10% PERIOD!

It is important to know which day Capital One will report to all three of the CRAs, because you do not want a balance of ZERO reported!  That can actually be negative because it looks like you're not at all utilizing your available credit.

Absolutely, positively, ALWAYS pay ON TIME.  No excuses.

Set up alerts so that you are reminded when your payment is due and if you go over your 10% utilization.

Finally, since you're trying to rebuild, a secured credit card would not be a bad idea...  If you have the $200 for the deposit, trust me, it's worth it!

Good luck!!!

[jordanhand]

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@ERoosky99 wrote:

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@jordanhand wrote:

I was recently approved for my first two credit cards the capital one quicksilver one card and the capital one platinum card. I know this might sound stupid but what is the proper way to use these cards? Ive never had cards before and Im just trying to establish some credit., Ive read so many different things; that I should carry and balance and then some people say I should never have a balance... The credit line for both cards is $300.00 I was also reading that I should use only 10% per month? So I should only ever charge $30.00 per month on this card? 

Thank you!

---

From what I have learned, the best thing to do is to keep your utilization below 10% PERIOD!

It is important to know which day Capital One will report to all three of the CRAs, because you do not want a balance of ZERO reported!  That can actually be negative because it looks like you're not at all utilizing your available credit.

Absolutely, positively, ALWAYS pay ON TIME.  No excuses.

Set up alerts so that you are reminded when your payment is due and if you go over your 10% utilization.

Finally, since you're trying to rebuild, a secured credit card would not be a bad idea...  If you have the $200 for the deposit, trust me, it's worth it!

Good luck!!!

---

Thank you!!!

[jordanhand]

---

@Imperfectfuture wrote:
You are correct. Usually (though some variants come with the higher echelon cards, we don't have to worry 'bout them yet) the reporting balance is the statement balance. For BEST. Scoring, that is what you want to focus on. For higher cli's, you want to charge the heck out of the card.

So your above summation is correct. Just use the cards a lot before the statement cuts.

---

---

@Imperfectfuture wrote:
You are correct. Usually (though some variants come with the higher echelon cards, we don't have to worry 'bout them yet) the reporting balance is the statement balance. For BEST. Scoring, that is what you want to focus on. For higher cli's, you want to charge the heck out of the card.

So your above summation is correct. Just use the cards a lot before the statement cuts.

---

Thanks that is extremely helpful!

[ERoosky99]

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@jordanhand wrote:

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@ERoosky99 wrote:

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@jordanhand wrote:

I was recently approved for my first two credit cards the capital one quicksilver one card and the capital one platinum card. I know this might sound stupid but what is the proper way to use these cards? Ive never had cards before and Im just trying to establish some credit., Ive read so many different things; that I should carry and balance and then some people say I should never have a balance... The credit line for both cards is $300.00 I was also reading that I should use only 10% per month? So I should only ever charge $30.00 per month on this card? 

Thank you!

---

From what I have learned, the best thing to do is to keep your utilization below 10% PERIOD!

It is important to know which day Capital One will report to all three of the CRAs, because you do not want a balance of ZERO reported!  That can actually be negative because it looks like you're not at all utilizing your available credit.

Absolutely, positively, ALWAYS pay ON TIME.  No excuses.

Set up alerts so that you are reminded when your payment is due and if you go over your 10% utilization.

Finally, since you're trying to rebuild, a secured credit card would not be a bad idea...  If you have the $200 for the deposit, trust me, it's worth it!

Good luck!!!

---

Thank you!!!

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No problem, you're welcome!  Again, good luck!

[jordanhand]

Okay, so I just got my first statement on 10/12 from capital one for my two cards...

I should pay one off completely and the other leave a 10% balance... as long as i do this before the due date 11/5 it will report this way? Am i correct?