- Use your credit card as if it was a debit card -- only charge to the card what you can pay off in that moment (or at most, before the due date)
- Keep utilization (your reported balance) below 28.9% (or optimally below 8.9%) before the statement cut date; pay down the amount owed during the middle of the billing cycle if necessary to keep util low
- ALWAYS pay in full each month; DO NOT carry a balance or get charged interest!!!
- Do not apply for any new cards until your account has aged for at least 1 year since this is your first (and only) card
- Consider signing up for free monitoring services such as Credit Karma and TrueIdentity after a few months to keep track of your account reporting (ignore the scores if they are Vantage Scores and not FICO)
- Pull your 3 bureau FICO scores after 6 months to see how you're doing credit wise
Currently on a plane that's about to take off so sorry for the somewhat rushed response. I'm sure others will be happy to pitch in and a lot more info.
- Keep utilization (your reported balance) below 28.9% (or optimally below 8.9%) before the statement cut date; pay down the amount owed during the middle of the billing cycle if necessary to keep util low
- ALWAYS pay in full each month; DO NOT carry a balance or get charged interest!!!
- Do not apply for any new cards until your account has aged for at least 1 year since this is your first (and only) card
- Consider signing up for free monitoring services such as Credit Karma and TrueIdentity after a few months to keep track of your account reporting (ignore the scores if they are Vantage Scores and not FICO)
- Pull your 3 bureau FICO scores after 6 months to see how you're doing credit wise
Currently on a plane that's about to take off so sorry for the somewhat rushed response. I'm sure others will be happy to pitch in and a lot more info.
Congratulations and welcome to the forums!
Do you have a credit score (FICO) reporting yet, or is this the first of any credit? How long have you had your accounts with the banks?
Asking, because if you have had a relationship with them for awhile, you may be able to get another card or two to help your credit building journey. Now you don't have to have other cards, but it helps in keeping your utilization percentages down. Read all you can about scoring and use of credit. This forum is your gateway to success! Don't hesitate to ask questions, as there are a lot of knowledgeable and helpful folks on here! Good Luck!!
EQ 817, EX 815, TU 813 (Updated 1/5/18: TU 843Some say get one card and let it age before getting another. Each person's situation is different, as are opinions. If you have been with boa for awhile, I would try getting a card with them. They will grow, as will your history with Cap1. Cap1 declined my teen son out of the gate, but he was approved with Discover and American Express. Discover and Amex can grow pretty quickly too. Whether or not you have a score reporting to FICO yet, plays a big factor in this. My son did, because I had had him as an authorized user for several years. Do you have any student loans or maybe an automobile loan reporting, possibly?
CreditCheckTotal.com is a $1 week-long trial and will show you your actual Fico scores. Credit Karma and Credit Sesame are Vantage Scores, not Fico. You will see them referred here as FAKO scores. Some people on here have seen 100+ point differences in their Fico scores compared to Credit Karma/Credit Sesame. I just checked mine and there is a 30+ variance (with Credit Karma being 30 pts higher than my actual Fico score here on MyFico).
@Anonymous wrote:Thank you so much. Are you suggesting I only stick to Capital one card? My credit line there is $200. I believe I can increase them too.
If this is the ONLY credit you have, waiting seven months (it takes awhile sometimes for scores to show) would benefit you before you apply for anymore. Some people go hog wild right out the gate, and that sets them up for a bunch of low limit cards. Patience with credit is key, as is making ALL of your payments on time. The main reason you want your credit limit higher, is so you don't have to make constantly make multiple payments just to be able to use the card. Your limits only affect your credit score as far as utilization. As mentioned, you typically only want below 9% reporting. In your case, this will be hard, because it's your only card. Not to worry if you are not seeking credit anytime soon! Just don't go over your limit and make your payments on time. At this point in time, you are more concerned with history (good payment habits) and time to build that score.
@Anonymous wrote:Okay, that is insightful. I will sign up for the trial but as a first timer, what should I expect? I tried signing up for Equifax and TU and they couldnt register me for some reason. I guess they dont register you if you have no credit score.
Exactly. Do the others just to familiarize yourself and also helps you learn what the bureau's include for your scores.