Hi and welcome to the forum! Congrats on getting your first card! The Freedom is a great card!
Jnvlv247 wrote:I plan to use this to build up some credit. I noticed that the first 15 months were 0 apr and was wondering if I purchased something during this time period in which I could pay off, I know for sure, in 2 months, would that be OK? Otherwise I'd use it and stay well below the 1500 limit and pay it off each month.
Well, IMO, it really depends on what you mean by "OK."
Are you talking about for your credit score? To avoid adverse action from Chase? To develop good credit use habits?
My gut reaction, if you can truly pay off the charge in a couple of months and don't plan to not pay in full once the 0% APR period is over, would be that yes, that's probably fine.
A big factor as far as how it will impact your credit score is how much of the $1,500 limit the large purchase would take up. Ideally you want to keep your credit utilization low. However, damage to your credit score from high utilization will rebound quickly once you pay off/pay down the card. The more important thing to remember is to always make on-time payments for a least the minimum or more. Damage done by missed or late payments DOES NOT go away quickly - you'd be looking at about 7 years of impact from it; although, with it gradually decreasing in impact.
Also, in case you're unfamiliar with the term 'utilization' that just refers to your debt-to-credit-limit ratio. So for example if you had a $150 balance reporting and have a credit limit of $1,500, then that would be 10% utilization (150/1,500). The main thing to keep in mind is that lower is better, but some activity is better than no activity. As a rough estimate:
1-3% is ideal ($15-$45 on a $1,500 limit)
less than 10% is 'good' (so under $150 on a $1,500)
10-30% is 'okay' ($150-$450 on $1,500)
30%+ is 'bad ($450+ on $1,500) - and the higher the worse it is (so of course 80% util would be worse than 31%)
Also, note that those amounts are based on what REPORTS to the credit agencies, generally around your statement closing date, but it's best to check with Chase for the exact date yours will be reporting. So it's fine to carry a higher balance throughout the month as long as you pay it down before it reports.
Personally, if it were me I'd try to give the account a couple months of routine, lower charges before making the bigger charge if possible - perhaps not necessary, but that's what I'd do to avoid 'spooking' Chase/their algorithm. Then I'd feel comfortable making the large charge as long as it doesn't exceed 50% of my limit (and ideally I'd want to be able to pay it down to under 30% before the reporting date) and as long as I could definitely pay it off in full in a couple of months at no interest. But that's just me. What you're comfortable with may vary.
Anyway best of luck and enjoy your new Freedom!