@Anonymous wrote:
I'm working in my credit (currently 558 experian). I applied for the DIscover it secured card. They are requesting a 200.00 deposit. Should I give more?
My credit is awful from charge offs and collections that's I'm working on paying with PFD/Goodwills. I would think that any extra money would be better served in this area.
I also have 2 morgages and a school loan that in good standing. I'm new to this and trying to make my credit file better. This will be my only credit card. I'm confused about credit utilization. If my credit limit is 200.00, do I make a purchase for 15.00 and pay it off when the statement arrives? If so, how long do I wait to charge another 15.00?
Not necessary to go more than $200 if it does help pay off some old derogatory debts, as you stated. Once those are taken care of to the best of your ability then you can add additional funds for a higher line of credit.
Utilization- If this is your ONLY open revolving card. You can charge $198.00 a month, but know when your statement date cuts, not the due date. ie, statement cuts 5th of month, due date on 9th. The statement balance is what gets reported to the bureaus. So you can charge up to but not exceed the limit, and pay minimum 4-5 business days in advance to $15.00 each and every month. <8.9% is optimal in scoring, but unless you are applying for an auto, mortgage, not necessary to keep that threshold, but always a good deal if it never exceeds 28.9% of total credit line. After you receive your statement with a $15.00 balance, pay in full so you will not be paying interest on any purchases, and just repeat the process each month.
