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How to use CC's

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New Member

How to use CC's

I've been trying to rebuild my credit. I've had my Citi Bank Card for about 19 months. I was just approved for a Discover IT Card. I have a $200 limit on one and a $500 limit on the other. What is the best way to use the card? Should I have both cards on the same due date or different times of the month? How much should I carry over for a balance on each card?
Message 1 of 7
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Frequent Contributor

Re: How to use CC's

When I got my first 2 cards, their due dates were 2 weeks apart from each other. As one got near the statment cut date I would make sure it was PIF prior to that date. If I had to charge anything durring that time I would put it on the other card and so on. Just my 2 cents.

 

Good Luck!




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Message 2 of 7
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Super Contributor

Re: How to use CC's

Agreed with the above. It's convenient when you have staggered due/close date.

Use the CCs as much as you need. Pay it down if you are brushing against the credit limit.

Try not to carry a high balance or pay interest. Before the due date on one card, you want to pay to zero and report zero. On your 2nd card, have it report a small balance, eg. $10. You want to be 8.9% or under for reported utilization. Once billing cycle closes, pay it. This should help with your FICO score.
Message 3 of 7
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Super Contributor

Re: How to use CC's

Congrats on your Disco approval. The above posters were correct. Once you start to get more cards. It will get confusing. I have 1 card with a mid-month statement date I use only when my other 7 have the same statement dates between the 1st and 4th. I worked it out that way. I use each card each month. One payday is cards. The other is rent.

 

Once you get out about 4-6 months since Disco. Go for the third card for the rebuild FICO bonus. FICO likes less than 50% of your cards reporting a balance. Just some examples as you grow the cards. Good Luck!

Message 4 of 7
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New Member

Re: How to use CC's

Thank you for your help!!
Message 5 of 7
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New Member

Re: How to use CC's

Thank you!!
Message 6 of 7
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New Member

Re: How to use CC's

Thanks!!
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