- Centurion Member
- Posts: 630
- Joined: Thu May 10, 2012 10:10 pm
- Location: North Los Angeles County
Also to piggy back on what most of you have said, try to do what you can and pay before the statement cuts. That way the balance is reported at 0, or you can choose to leave anywhere from 1-10% of your CL to be reported.Up to 30% max you should use at any given time. I always PIF before the statement date, so that way I don't have much to worry about later on and my scores stay okay. Also like 99 said, don't use more then you can pay off because debt can sometimes get out of hand and you don't want to be in a hole since you are starting out. Basically a credit card is a short term loan you are taking from a bank or creditor. The bank or issuing institution is footing the bill and then you are paying them back later on. If you let a balance report it will also show you your minimum payment at the time (I.e. 5k CL, 300 balance, the minimum payment is a percentage of your balance that you have to pay. but it is best if you can pay it off ASAP.)
In essence this is what I advise:
1.) Never, EVER, and I cannot stress this enough, be late on payments. Based on the fico model, payment history is the biggest factor that they take in to account.
2.) Keep your utilization low. Anything from 1-30% is okay, but it is recommended that under 10% is best for your scores and to your creditors.
3.) Don't apply for too many cards at once. Inquires are typically on your CB's for 2 years (Equifax, Experian, Transunion).
4.) Do your best not to apply for cards that are kind of tough to get approved for right now. Such as Amex cards (most of them require decent credit, 680+ scores. The Gold Delta is the easiest to be approved for for as an Amex revolver as well as their charge cards. except for their platinum and Centurion cards. Their BCE is typically the toughest to be approved for, look at many credit articles that agree with the statement) Chase (any of their airline or hotel partner cards. Now if you have a high income, 70k+ they might be able to overlook your scores, but I would not be sure if some creditors allow this or not.)
5.) Most of the time, CL increases are Hard pulls (meaning the bank or issuing institution will view your credit report and scores in order to extend you more credit). Sometimes they can be soft pulls depending on how you use your cards.
6.) Be good to your creditors and they will be good to you. The credit industry is rarely forgiving and you want to minimize your inquires and mistakes as much as you can. If you don't get approved for any card, there is always a reason behind their decision. Don't worry about it or take it personal. Chase denied me for their Freedom card 3 weeks ago, I turned around and applied for an Amex and they approved me.
7.) If you can, plan when you app. Meaning get your inquires done at the same time so that way it will all fall of at the same time. Don't do what I did and apply in October and then in November...lol. Just apply when you think the time is right and make sure that your scores are as good as they can be.
8.) Lastly, EX does not sell credit scores anymore, so the only way to find out is when you apply for a known EX puller (Amex and Citi). Or a mortgage. Credit sesame has the somewhat closest EX score for you. If you don't mind paying nearly 40.00 you can buy your actual EQ and TU scores from the myfico website.
9.) Make sure also that you make your payments on time for everything because they are on your credit reports, one late payment can drop your scores a bit. Bankruptcy as it is shown causes the biggest score drop along with charge offs (CO's) and other derogatory information on you.
10.) Lastly (again), From what I have read on the boards and on other websites, avoid capital one, the only thing that they are good for is if you are starting out or rebuilding. From what I have read, they typically do not grow with you and are a sub-prime bank.
Good luck on whatever you decide to do.
Bank Of America: BankAmeriCard Cash Rewards-4.2k
Citi: Forward-4.5k American Airlines Advantage Platinum Select World Elite MasterCard 9/6/15-4K
Amex BCE.2k- Amex SPG-5k
Chase: Freedom-5kSouthwest Rapid Rewards Plus- 3.6k
Capital one: Venture one-10,000, Visa Signature.