How to avoid high util on toy card while rebuilding

[hippychic823]

I had asked this in another thread but I feel like I need to ask here, worded differently with regards to rebuilding and until.
I have a QS1 with a "toy" 300CL. I use it for almost all my purchases and always PIF, usually PIF'ing it 2-3 Times a month. It always reports with a zero balance.
My concern, however, is that while I'm a rebuilder...does it look bad to be constantly charging a card to the max even if I PIF? The card is brand new, have only had it 3 months. The high util isn't for lack of fund, I simply use it like a debit card so I can get the rewards and PIF as soon as it gets maxed. At first, I thought that was the way to use it. Now, the more I read on here about creditors getting spooked over high usage and how bad using new cards looks, I'm worried that I'm maybe not using it right.
Should I stop using it for everything and only charge a little bit? But on the other hand, isn't the point of a rewards card so that you can get "paid" back for what you would already be buying anyways?

[Anonymous]

It only looks bad if you let a high utilization report to the CRAs.  Most cards report on statement date, some report on the 1st of each month, so learn when yours reports.

One thing I did when my only card was a toy limit was "push" payments from my bank to the credit card -- this way instead of running up high utilization, I actually usually had a NEGATIVE balance (a credit).  So with a $400 credit limit, I might make a charge of say $250 but then push $250 from my bank.  So my credit card would rarely see any utilization.

[Anonymous]

1) Thanks for asking, I commend you for seeking insight and some clarity... maybe you'll agree and maybe you won't but props for seeking some POVs other than your own.

2) Ppl who've read my post know this is a sticky issue for me
It's my belief that toy/builder/training wheel cards have ONE purpose...and that to audition for better by building perfect payment history and beautiful utilization, over time to feed the data the scoring model craves in order to graduate the profile to the big leagues.

I think marketing and our culture, fools so many new ppl into point chasing and bad habits early on greatly increase the number of folks that
a) develop too much dependency on CCs
b) wind up in the minors with crap cards & weak terms

Point being builders with toy limits honestly should be less concerned with points/rewards, truth be told if you're at Elementary school level building stay in that lane and build Graduate level card holders are who the points/rewards programs are really for

But marketers will gladly take advantage of newbies who shouldn't even be on that floor looking around...

No offense but 'think' about...
Does it sound prudent for a 570 credit score to be chasing POINTS along with a 740-760 solid,thick mature profiled account holder?

C'mon...

A person with 3 billing cycles on 1 account has better things to focus on than chasing $1.50 back per $100 spent

Like adding a few more TLs to build more data and thickness so they can get to the Bigs...

The OP said it best it's a TOY car stop trying to drive it on the highway with REAL cars....you don't have a real one yet, play your position awhile till you get one
Simple as that

Best of Luck, be safe how you handle your toys and they will grow up if you play with them properly 😎

[rmduhon]

Have you tried for a CLI on it yet?

[Anonymous]

@rmduhon
The OP hasn't had the card but 3 billing cycles... hasn't had time for the steps to kick in

IMO CLI request as a solution frankly is silly the fresh to credit person needs to LEARN how to manage credit vs 90 days into owning a TL of any sort be out hunting for CLIs???
What?

I'm sorry but we send 100 new rabbits down these rabbit holes only to find them in the rebuilding or BK section in 20-30 months behind chasing nonsense

The OP needs profile building and credit management IMO more than chasing CLIs 3 months into being a credit user, with ONE $300 to their name?
= Fry a different fish, Right Now 😎

[hippychic823]

Gemini, I appreciate you chiming in, I enjoy reading the way you explain things, I find that your way of explaining things makes sense for "noobs" to credit like myself.
I do tend to agree with your assessment of my situation as well. My whole purpose of getting the card was to have a decent card going into my rebuild and the fact that its a "rewards" card kind of made me feel like "oh, well I need to use it for everything to get rewards cause that's what everyone else does. And that's what rewards cards are for right". But I forget that for most people with rewards cards they are using prime cards (the big dogs lol) with prime limits (read: bigger than 300 lol) that justify running all their spend through them
Yes, when I read what you write it makes lots of sense actually....why put myself out there looking thirsty and looking like a risk running up all this util, even if I do PIF, just for $1.50-3.00??? I hadn't thought about it like that until I read what you wrote....and then I can see kind of a bigger picture of what my actions may look like to another person.
I always appreciate any insight and advice anyone has for me Thses forums have been such an asset for my credit education and hopefully I will continue to learn and have a successful rebuild. I really want to approach this rebuild cautiously because I want to lay a good solid foundation for the next step in my rebuild and for the upcoming years.
I

[hippychic823]

Yes, I have no plans to ask for a CLI at this time. I don't want "more" credit at this point. I just wanted to know the best way to use a low limit card during the first year of a rebuild, particularly a rewards card because I was feeling uneasy about the way I was using it in regards to it being such a young account.

[Anonymous]

1) Thank you, so much for your kind words
Nice to hear someone is ok with my ramblings😀
I do it out of love and Karma...Give all ya got, never know, who or how it may help/save the next person 😊

2) Anyway to cut to the quick
I love how you said the 1st YEAR of rebuilding, so often folks miss that no matter what 12 months ain't but 12 months...they give you a chip in A.A. but it's only so long, now!

That being said all things considered equal you want to stack a decent amount of RISK abating data into the scoring model during that period, allowing the compounding of time to work for you.

You've only mentioned this 1 TL and it seems as if you're going into at least month 4

Do you have another TL...

IMO...3 of these toys building data is more valuable and higher on my concern list than if you get $30 in rewards over that critical 1st year we're speaking of

( We know we need the installer, we'll get there shortly)

My point being...ok we can talk about running spend to Max out $15/$1000
OR
We can forget about it and let 'whatever' rewards come our way and focus on simple showing up 'pretty' all year to muscle up a profile to the point where we enter future years with a status that negates whatever little 'rewards' might have been garnered slapping spend year 1 ( but possibly stalling our score growth)

Again for me if most of or all of year 1 can be about looking PRETTY as the time/aging works it magic the better ( rewards be darn)

Ideally, barely enough spend to garner rewards would ever happen on my watch, if I were in total control

For me building would be

1) A SSL loan with it's small payment being the only spend paid for rotating monthly between 3 toy revolvers, with the other 2 reporting zero

After 10-12 months of allowing this controlled video game manipulating year 1 with 40/40-48/48 on-time payments with Hallie Berry utilization...the real 'rewards' will start to kick in with the types of terms and offers given LOW RISK profiles

The thing about life, be it school, work, credit reputation...there are generally 3 categories
Special Needs
Average
Advanced Placement

And once you're labeled, it's tough to move
IMO during build time the only thing that matters is building such when the 'real' bell rings you're in A.P. classes

[hippychic823]

I do have an installment loan already, an Auto loan that is 4 yrs old.
I also have another CC, an Open Sky. I know Open Sky isn't the prettiest to have but I opened it March 2017 and at that time I was pretty sure that was all I could get....I had read stories on here of people being denied for secured cards and I didn't want to risk a HP on a likely denial (scored were 590's at the time) so I just went with Open Sky to get a positive revolving TL.
I basically let this card just sit there and age and report a zero balance. I will close it when the time comes (which, when would be a good time to close it??).
I also have a tuition loan thru Comenity that I opened in March. This loan is weird though...it reports as revolving??? I applied for it for my son's private school tuition thinking it was an installment loan through the school but lo and behold it showed up on my CR as a maxed out revolver :/
I do have it paid down to around 61% util and will continue to pay it down but it is zero interest so I don't have to worry about that at least: ) Also, since my Open Sky and my Cap1 both report zero balance this Comenity loan/card/whatever it is is my revolver that carries a balance....even though it's a high balance.
Any tips, other than paying the 61% revolver down and paying my Auto loan off to help strengthen my rebuild?

[Anonymous]

Nope
You're doing what you can do

You understand the situation and your head is screwed on right, you understand where you're headed, all one can do is run the play and hit the bell when you do.

You've got your extra revolvers reporting at 0
You're paying down the 61% one as you can and you understand the anchor that it is
You've got and are managing an installer
= You're good all things considered

When the numbers change, they change other than that enjoy ice cream, live your life... can't change 61% to 9% overnight but as long as you know the deal I'm a happy camper....it's like that movie "Are we there yet..."chill out we'll get there when we do as long as you know the play you're running and you're executing it, may as well enjoy some lemonade along the way and not stress you'll get there😋

*Also, in terms of pretty I'm referring only to payment and utilization not the WHO or brand names of the vendors
Open Sky will get the job done, don't worry about that as long as they report they work for your purposes

Are they a top choice, if all options are available to me upfront...not gonna lie NO but are they at the OMG end of the pool NO

My issues will OS are minor overall compared to some blood sucker's
The AF alone moves them to a 2nd tier choice in my book but again I think it's $29 not OMG crooks or anything, no HP is nice

2nd again no big deal is I know upfront OS can't be a keeper, which again is a hey it would be nice but nowhere near a show stopper because the long-term goal is still the same and as they say 1monkey don't stop bothering show

"If" 2/3 of one's First 3 can be keepers =Great
If all 3 get replaced by PRETTIER girls(guys) down the line oh well, would been nice to marry the high school sweetheart but whatever as long as the train arrives we're gonna toot that horn😂