- Centurion Member
- Posts: 125
- Joined: Wed Dec 05, 2012 12:47 pm
- Location: Iowa
I have a question about how to look good to a credit card issuer, in this case Cap1. I know how some folks feel about them, but they did give me a real credit card that reports to the bureaus, so I'm happy. People are going to slam me and I've been told not to do it, but I've been watching Credit Karma every month or so and while it doesn't always give the whole story, it did show that my Cap1 card reported when I opened it, when it got a CLI and every month a balance is due. As a result, the score they give me, while some think it's just a made up fake score, has been going up over the past 6 months or so.
My future goal is to see if they will do something about giving me a better card with higher limits, I know they have them. So while handling the lower limits, I never went over the limit and always paid on time. I know the correct way is to charge something easy to pay for, wait for the bill then pay in full. The problem is, low credit limits are easy to over utilize and one month Credit Karma had me at 96% utilization dragging my score way down.
Years ago I know my parents always talked about the "float" and they used their cards so they might get another 20 days of interest on their checking account, but those days are long gone and the small amount of interest you get on $300 for one month seems to make that argument useless. Now days if it wasn't for rewards, credit cards would seem almost useless. For me, I'm using a couple major credit products to strengthen my credit history and to some extent if you have problems you are using someone Else's money.
Now that brings me to the point of paying in full several times a month. If I wait for the bill to come, I either over utilize or end up sitting on the card for a couple of weeks while looking for another way to pay. Tried a prepaid card but totally got my butt reamed for that idea. So week one I almost had the card maxed out, paid in full, then week 2 did the same thing. I paid my last bill too soon, just a couple days before the card reported and that month it didn't report which as I understand is bad. You want to leave like $10 on the card and let that report, but I didn't think to do it.
Now my question, how does a credit card issuer like Cap1 look at this? That is, paying 3 or 4 times a month in full? Just wondering if they would get upset with me and put a black mark on my file or something (internally). Also, if a credit card remains active and current, but doesn't have a balance for several months, would I still see improvements in my credit or does it need to report a balance every month for best results and fastest credit improvement.