Secured Card Advice

For just about anything you want to get off your chest about credit cards.
23 posts
Kevin86475391
Centurion Member
Centurion Member
 
Posts: 237
Joined: Wed Feb 18, 2015 9:04 pm
Location: Texas

Re: Secured Card Advice

Postby Kevin86475391 » Wed Oct 14, 2015 1:07 pm

Nice! So happy for you! :D :lift:

The main thing regarding usage is to always PIF every month to avoid interest charges and to keep your utilization down. So even though you now have a credit card, my recommendation would be to treat it exactly like a debit card: don't make a charge unless you can pay it off completely.

You might consider paying more often than once a month if it helps you stay on track - personally I pay weekly even though utilization isn't a concern for me just because I prefer to and it helps me make sure I'm not overspending.

For the best credit score possible you want the card to report with a very small balance, ideally about 1% but up to about 9% should be okay. So in the case of a $1,000 limit try to have it report with a balance of maybe $5-15. Then pay that off before interest hits (by your next due date).

Your report date is usually right after your closing date, but it's a good idea to call the credit card company and ask them for the exact reporting date so you can be sure. Whatever your balance is on that date is what gets reported to the credit bureaus, even if at different points throughout the billing cycle it was higher or lower.

Personally I don't worry about utilization that much and just PIF weekly and let whatever happens to report report. But then again I'm not actively trying to improve my score or considering apping for anything new in the immediate future.


USADR
Green Member
Green Member
 
Posts: 20
Joined: Mon Oct 12, 2015 4:33 pm

Re: Secured Card Advice

Postby USADR » Wed Oct 14, 2015 6:37 pm

Vermonster wrote:
USADR wrote:UPDATE: APPROVED by Barclay. They gave me a $1,000 credit limit. I am taking baby steps. Need schooling on best way to use this limit. I will be reading this forum later after work. My plans are to use it for gas and small items. Thank you guys very much.


Congrats! That is a nice limit to start with. There is a ton of good information on this site. But always feel free to ask if you can't find what you're looking for.
Thanks Vermonster.

USADR
Green Member
Green Member
 
Posts: 20
Joined: Mon Oct 12, 2015 4:33 pm

Re: Secured Card Advice

Postby USADR » Wed Oct 14, 2015 6:42 pm

Kevin86475391 wrote:Nice! So happy for you! :D :lift:

The main thing regarding usage is to always PIF every month to avoid interest charges and to keep your utilization down. So even though you now have a credit card, my recommendation would be to treat it exactly like a debit card: don't make a charge unless you can pay it off completely.

You might consider paying more often than once a month if it helps you stay on track - personally I pay weekly even though utilization isn't a concern for me just because I prefer to and it helps me make sure I'm not overspending.

For the best credit score possible you want the card to report with a very small balance, ideally about 1% but up to about 9% should be okay. So in the case of a $1,000 limit try to have it report with a balance of maybe $5-15. Then pay that off before interest hits (by your next due date).

Your report date is usually right after your closing date, but it's a good idea to call the credit card company and ask them for the exact reporting date so you can be sure. Whatever your balance is on that date is what gets reported to the credit bureaus, even if at different points throughout the billing cycle it was higher or lower.

Personally I don't worry about utilization that much and just PIF weekly and let whatever happens to report report. But then again I'm not actively trying to improve my score or considering apping for anything new in the immediate future.
Ah I see. Thanks for info. I will stay on top of it. Basically pretend I do not have the credit line but just use it in small bits to show activity. Thanks



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