seacorb wrote:I was under the noob impression that I should use as much as my credit as possible on a monthly basis so long as I pay it off in full before each due date, then I did some research and I fully understand the credit to debt ratio and all that jazz.
So after I fix my previous mistake by paying my $196 balance as soon as the charges post and waiting for my payment to post after that, then I should only charge $20 (10% credit utilization) or less and pay the balance before each due date for optimal chances at increasing my score quickly, correct?
Hopefully they didn't report to the bureau's while my charges were posting or while my payment is posting because that would reflect the outrageous ratio that I temporarily have.
That bring me to my main questions:
Do credit card companies report on the same day every month or is it random? If so, is it possible to find out what day from said company? I guess it's not really important if I maintain lower than 10% credit utilization for the whole duration of my cycle, but it seems kind of silly that spending $18ish a month on my card and paying it off on time ONCE a month is going to do more for my credit score than nearly hitting my limit and paying it off the second all the charges post SEVERAL times a month.
Your billing cycle is set 25 days after your first credit card purchase posts, correct?
I plan on increasing my credit line to $500. I also plan on getting another secured card with my bank (Wells Fargo) and putting down $500 for the deposit as well, that way I'll be able to put $40 on each card per cycle and have two cards reporting - I got my Capital One Card on March 8th, will it effect my credit score negatively if I go into Wells Fargo tomorrow and get a secured card since it is so soon after getting my first card? If so how long should I wait?
Thanks in advance for your replies - I really need guidance and I've heard/read about a lot of people messing up their scores even though they had good payment habits!
This is a secured card, as you stated. So you can increase your available credit limit, by simply contacting Capital One and asking them to increase it and mailing in an additional money order, or paying with your debit card.
Capital One will post on the same day every month for you, the day your billing cycle ends.
It will not adversly effect your score to go in at any time and add an additional secured card, presuming they have already done the hard inquiry on your credit and will not conduct another one.