- Posts: 2
- Joined: Sat Jul 14, 2012 3:57 pm
- Location: Tupelo
I'm new to this site and this is my first post (hi everyone!) and looking for some advice from you credit experts. I'll start by giving you the backstory.
I'm 22 years old, have a good job, and have had a couple of loans so I think I have established a little bit of credit. I'm also getting married in about 3 months, and am going to New Zealand for our honeymoon. I have money saved up, but I thought that I might want to get a credit card, that way I could get the introductory 0% financing and not have to drop a ton of money at once.
Before I really did any research, I went to Visa's website and did the credit card match thing and it recommended a Chase Freedom card, which seemed to be a great card since it had all of those great perks. I applied for it, and didn't hear anything back for a week. So I started to do some research and found out that you could call a backdoor number and speak directly to one of the credit specialist. I did this, and actually got approved for the card (didn't expect to since it said you needed excellent credit, and I also didn't know that applying and getting denied can hurt your credit score). The only thing is is that the limit is only $500. I had hoped it would be much higher, but I'm just happy that I got approved for it.
So I did some research on best beginner credit cards, and everyone seems to recommend the capital one cards with average credit rating. There are several different ones with different perks, and they are apparently pretty easy to get approved for. So I applied online for a Capital One cash rewards card and instantly got approved for $1000. So as of right now I have about $1500 of available credit. I had originally thought about using these cards quite a bit while on my honeymoon and could use the $1500 easily, then make steady payments on it. Even though I could pay it in full no problem, I figured that making steady payments would be the way to go.
But the more I keep reading, the more that is not the case. I've been trying to find out about how "credit utilization" can hurt your score. My basic question is, I have $1500 total credit, but I also have the cash to pay this off. I wanted to put the expenses on a credit card so I would not be out all that money at once. What is my best option here? The main reason I wanted one of these cards was to be able to rent a car, since almost all car rental places require a credit card on file. Some people say you shouldn't use over 25% of your available credit, which in my case is next to nothing. At my stage of my credit history, is it necessarily a bad thing to use alot of the available credit then instantly pay it off? Or pay it off in payments?
I've also seen where sometimes credit card companies will match your limit that you have with other companies. Would it be possible to negotiate with Chase a limit increase because Capital One gave me twice as much available? I could probably apply for more credit cards and get more available credit, but I really don't want to do that (didn't really want to apply for a 2nd one).
Any suggestions on how I should handle this and what I should do would be greatly appreciated. Like I said I'm new to the credit card game and am looking for any helpful tips and hints about how to manage it. I'm a very responsible person so in no way would I max them out and not pay them back and ruin my credit.