How to use my credit cards

Anonymous · ‎03-14-2016

Hello everyone,

I have been working on building my credit over the last couple of months. Back in Decemeber I got a secured Capital One Platinum card with a $200 limit. This was my only active credit card, and after reading some forums on here, I learned I should have at least 3 active revolving accounts? So I just applied and was approved for a Capital One QuickSilver card with a $500 limit.

So my question is, what is the best way to use the cards? Currently, I have been buying a tank of gas each month (around $40) and then paying it down to $18 before the statement comes out so that it would report my utilization % at less than 10%. Is this what I should continue to keep doing? I have seen some people say I should use my card as often as possible, but make sure it is paid down to under 30% before the statement comes out. If this is true, I could use the cards to pay most of my monthly bills and then in turn put the cash back on the cards before the statement is ready.

I want to make sure I am utilizing these cards as best as possible as we are hoping to buy/build a home this Summer. We have already been approved for a home loan, but because of my low score (was 602 2 weeks ago when approved, was 623 when I checked today) the terms are pretty crappy and since there is nothing on the market that interests us right now, I figure why not try and get a better score and better loan.

Thanks!

Also, about having the 3 revolving accounts, should I try for another card? if so, what??

Anonymous · ‎03-14-2016

@Anonymous wrote:
Hello everyone,

I have been working on building my credit over the last couple of months. Back in Decemeber I got a secured Capital One Platinum card with a $200 limit. This was my only active credit card, and after reading some forums on here, I learned I should have at least 3 active revolving accounts? So I just applied and was approved for a Capital One QuickSilver card with a $500 limit.

So my question is, what is the best way to use the cards? Currently, I have been buying a tank of gas each month (around $40) and then paying it down to $18 before the statement comes out so that it would report my utilization % at less than 10%. Is this what I should continue to keep doing? I have seen some people say I should use my card as often as possible, but make sure it is paid down to under 30% before the statement comes out. If this is true, I could use the cards to pay most of my monthly bills and then in turn put the cash back on the cards before the statement is ready.

I want to make sure I am utilizing these cards as best as possible as we are hoping to buy/build a home this Summer. We have already been approved for a home loan, but because of my low score (was 602 2 weeks ago when approved, was 623 when I checked today) the terms are pretty crappy and since there is nothing on the market that interests us right now, I figure why not try and get a better score and better loan.

Thanks!

Also, about having the 3 revolving accounts, should I try for another card? if so, what??

Use them for ALL of your monthly spending, and pay them down several times each month. Make sure there is only a small balance (under 30%, but <10% is ideal) left on the QS1 card when its statement closes - the closing balance is the ONLY balance that counts as far as scoring. Pay the other card in full before the statement closes so it shows a zero balance. The more money you cycle through your cards the better. Your rewards will build quickly, and you'll get better CLI's. Make sure you go online and request CLI after the QS1 account is 60 days old.

Anonymous · ‎03-14-2016

Awesome! Thanks for the tips NormanFH!