Optimal credit utilization for CLI as a young professional?

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Concreteshoes
 
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Location: United States

Optimal credit utilization for CLI as a young professional?

Postby Concreteshoes » Sun Jun 03, 2012 5:42 pm

Background: One year out of college, zero debt and a 46.5k job (no car payments, slightly high rent 35% of net income). I realized I had no credit and could not get a credit card (only one of the credit agencies even had a credit report for me), settled for a secured Capital One card in Feb. 2012 ($50 down, $200 dollar limit).

Checked Credit Karma yesterday and my Vantage score had increased from 687 in Feb. to 723 current (June), my Transrisk score is 693. The website recommended I apply for a Chase Freedom card, I did and was accepted for a $500 Credit Limit. I'm only interested in Credit Cards to increase my credit, so that in the future I can get lower interest rates on a home/auto loan. Also cash back rewards on the chase card seem like a good idea.

My question is, i want to increase my Credit Limit on the Chase card to at least $1500, (preferably $3000). Would I best following the standard advice of 10-30% utilization each month (paying entirely off), or would i be better off utilizing the card to $350 (%70) and paying it off before the billing cycle to show that I could use a higher limit if I had it? Should I give Chase 3 months to figure out I am a good customer and then call, or wait a full 6 months?

I appreciate any and all advice, thanks for your time!


Crashem
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Postby Crashem » Mon Jun 04, 2012 1:38 pm

Chase isn't going to bump you up that much. Plus chase takes a hard pull to get cli. My recommendation is to find issuer with more friendly cli building policies. Amex comes to mind with their up to 3x 61 day soft pull cli policy, but unclear if you would get revolver from them. Might have to do the charge card method. Btw, your fico should get another boost with three trade lines once everything settles down. Dont leave balance with anyone for chase cli. If you want to pay off several times a month to show you can use more cl from them, I would wait 6 months
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

Concreteshoes
 
Posts: 2
Joined: Sun Jun 03, 2012 5:25 pm
Location: United States

Postby Concreteshoes » Mon Jun 04, 2012 6:18 pm

Thanks for the advice Crashem!

If I plan to pay off the card every month, leaving no revolving debt, does credit utilization even matter?



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