Payments on a Secured Credit Card?

For just about anything you want to get off your chest about credit cards.
9 posts
AceH
Gold Member
Gold Member
 
Posts: 38
Joined: Sat Mar 20, 2010 8:23 am
Location: USA

Payments on a Secured Credit Card?

Postby AceH » Fri Apr 02, 2010 11:32 am

I've heard conflicting information regarding paying balances on a Secured Credit Card. I need the definitive answer: is it best to leave a balance or is it ok to pay in full each month?


FidelityAmex
Green Member
Green Member
 
Posts: 10
Joined: Wed Feb 17, 2010 8:40 pm
Location: USA

Postby FidelityAmex » Fri Apr 02, 2010 9:43 pm

I have been paying my secured card in full for 5 months. I don't know it's good or not, but I received a lot of mail offer from Capital One. It said that I am eligible for their Platinum Mastercard. I don't want to apply for it, I want to wait until the year end so I can check my FICO score.

AceH
Gold Member
Gold Member
 
Posts: 38
Joined: Sat Mar 20, 2010 8:23 am
Location: USA

Postby AceH » Sat Apr 03, 2010 9:39 am

Thanks for the info. Did you apply with Capital One for an UNSECURED card PRIOR to getting a secured card? And, is your secured card from Capital One?

FidelityAmex
Green Member
Green Member
 
Posts: 10
Joined: Wed Feb 17, 2010 8:40 pm
Location: USA

Postby FidelityAmex » Sat Apr 03, 2010 1:24 pm

Yes, First I applied for unsecured card with Capital One, but I got denied (No credit history). I have no place to go, so I went to my bank (Bank of America) and asked for help. They offered me a partial secured card (99/500).

After couples of on time payments and keep low utilization, I guess I got some credit now. That's why Crap 1 sent me three mails offer every months. They try to get me back because they want to know "What's in my wallet".

AceH
Gold Member
Gold Member
 
Posts: 38
Joined: Sat Mar 20, 2010 8:23 am
Location: USA

Postby AceH » Sun Apr 04, 2010 7:22 am

Thanks again. I like the name you use "Crap 1". :)

AceH
Gold Member
Gold Member
 
Posts: 38
Joined: Sat Mar 20, 2010 8:23 am
Location: USA

Postby AceH » Sun Apr 04, 2010 7:26 pm

FidelityAmex,

One more question if you don't mind. When making purchases with the secured credit card did you stay within 30% of your total credit limit per monthly statement?

I've been reading that all credit card users should stay within 30% of their total limit in order to maintain a higher credit score.

FidelityAmex
Green Member
Green Member
 
Posts: 10
Joined: Wed Feb 17, 2010 8:40 pm
Location: USA

Postby FidelityAmex » Wed Apr 07, 2010 11:59 pm

Yes, I always stay below 30% of my credit limit. I have $500 credit limit, so every months I used less than $100. If you can keep your utilization below 10%, that's the best way to make your score go higher because the banks will see you are a less risk borrower. That's why you see most people want their credit cards to increase the limit.

To have the best score it also takes time and patient. I don't think one year is enough. I would say about two years above to have a good credit score. One year is just help you establish some credits, so the banks will see your name on their list; then they will send you mails offer for unsecured card with $1000 limit, then after that they might increase your limit to $5000, $10000, $20000...

I will let you guys know my credit score after one full year of using secured card. So be patient with me.

AceH
Gold Member
Gold Member
 
Posts: 38
Joined: Sat Mar 20, 2010 8:23 am
Location: USA

Postby AceH » Fri Apr 09, 2010 7:59 am

Thanks again.

Creditcardman
 
Posts: 2
Joined: Mon Mar 08, 2010 1:18 am
Location: USA

Postby Creditcardman » Fri Apr 23, 2010 3:16 am

I also agree of increasing your credit score by maintaining below your credit limit and paying your dues before deadline ends. 10% is really low but that's how you use it and you prove worth a while that it's working.



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests