How do I handle a new credit card when trying to rebuild credit???

[Anonymous]

I can't believe I am even asking something like that.  Ok here is the scoop I have been cleaning up my credit reports and getting baddies off left and right. I have high credit utilization that I am working on paying down. That is the only thing left on my credit reports to do- that and have a few less inquires.

Ok my question is this- I got approved for  HSBC credit card for a measly $300. Ok what is the best way to show I am responsible and a good canidate for credit line increases down the road. Do I just charge $20 now and again- wait a week than pay it off or what? I have to use it at least a few times and pay it off before it looks like I am good at paying my card. Or do I use it once wait till I get the bill- pay it and sock drawer the card for months?

What looks the best for my credit report and for HSBC?

[Itsmeagain]

Use it all you want but pay it down to less than $20 before the statement drops.  That way it will show no more than 7% utilization on your report.  Be sure you know when the statement drops.  They usually close the billing cycle the day before so be very careful to not let it report a high utilization.  When I started rebuilding Orchard was one of my first cards.  I used it often but paid as soon as I saw it had posted (online).

BTW, congrats on the cleanup.  It's a long road but well worth the trip.

[Anonymous]

When I set up the card they said the statement is the 23rd of the month.

[Anonymous]

I applied for a Bank of America card and a HSBC card. I get $300 from HSBC and a big ol denial from Bank of America.  I could have sworn Bank of America was easier to get than HSBC.

Are there any other cards that don't get so denial happy about high credit utilization? Like I said I am trying to get my cards paid down but I wouldn't mind one more bank card to add to the mix. So the mix looks better as I am rebuilding.

[Itsmeagain]

---

@Anonymous wrote:
When I set up the card they said the statement is the 23rd of the month.

---

So, use the card as you will BUT be sure it's paid to around $20 NO LATER THAN the 22nd.  NOT the 23rd.  The 23rd is too late and the balance on the close of business that day (or more likely the 22nd),  will be reported.