Hello all, I've recently started credit repair, and alot of my negative accounts have been deleted; I'm starting fresh now with new tradelines, in particular, Crown Jewlers and Orchard. My CJ account limit is $1500,and I'v only used $43 of that,which is reporting good,paid. I have yet to receive my Orchard Bank MC which has a limit of $200 secured. Question, I've read keeping a good utilization is good on revolving accounts such as these, what exactly does this mean?? CJ said I need to buy at least $1500 worth of merchandise(the max) in order to get a credit boosting. I'm trying to up my scores,but how exactly do I do that?
I'm sure THEY would love for you to buy $1500 of jewelry, but if you are recovering from negative credit, and presumably too much debt, why would YOU want to? You don't take your financial advise from someone who has something to gain from what they are proposing with your money. Building good credit takes time. You now have 2 good accounts. As they age, still showing paid as agreed, and as you add additional credit accounts, your scores will rise. Maxing out all of your available credit on things you don't need won't improve your finances, or your credit. In fact, it will tank your scores, ensuring that you won't have a chance to open normal accounts. Perhaps that, and a large sale, is what the salesperson wants you to achieve. Credit is a tool, not a goal.
((THanks kind sir))) so, if I stay put,and charge nothing,then I'm good??? What exactly does utilization mean?? on the CJ account, do I need to pay a monthly fee or something to keep it active if I'm not charging?? This is my first time in all of my 29yrs on earth of having a charge card,and I'm clueless.
If you are not independently wealthy, and are not starting a jewelry business, I presume your goal in having credit isn't limited to buying jewelry. On open accounts, they will usually post your current account status, including current balance, last payment made, high balance, whether any payments are late, etc., to your reports monthly. This applies to both your CJ account, and your Orchard account. As you use your cards, you will start building a record, presumably, of on time payments. Other potential creditors will be able to see this record when they pull your reports. Use your Orchard card normally, paying it off each month, and you will start building a good credit history. With its low limit, be careful not to go over the limit. In fact, be aware that you might exceed your limit even if you have made a payment that should reduce your balance, but it has not been posted yet. Your CJ account is mostly of value just sitting there, showing its $1500 credit limit, and representing some account age, so it can assist you in getting normal (VISA, MC) accounts with better terms (lower interest rates, higher limits). Don't spend money thinking you are "buying" good credit. Banks are not charities, and although you might pay for their services that are of value to you, don't just throw money at them even though they will gladly take it. There is a value to credit in our society, even if you can pay cash, and even if you are not currently buying a house. It is safer to pay via credit, using the bank to protect you from fraud. You are better protected with CCs than with debit cards. It is safer to carry CCs, and not a lot of cash, so you don't get robbed. If you travel, the above apply, plus to conveniently rent a car, stay in a hotel, or buy an airline ticket, you need credit. If you rent, the landlord may want to know you will pay, so they pull your credit. If you want utilities, with good credit you won't have to pay deposits. In all these cases you may be paying all your bills in full monthly, but you benefit from having good credit.
I'm sooo dam confused again; I received my Orchard card Monday, the limit is $200, I'v already charged $85.17 for groceries,and I don't plan to use it again until I receive my statement next month and pay off the entire balance. Question ontrack and others, am I suppose to at least purchase something every month in order for them to report?? Same as my CJ account, I got the card in February of this year, I'm only spent $43 of the $1500 limit,and paid off the entire purchase, I checked this morning, my account says balance $1500.55(which I guess I have a credit of .55) will they still report each month if I don't use it?? Someone please help as I have no idea of credit/dept cards.
They don't have to report each month, but most of them do anyway. It is not worth buying things you wouldn't buy anyway just to somehow appease the credit gods. Their blessings are double edged. Besides, what would you propose, spending $50/month on jewelry you don't need? You would be better off putting $50 a month into a savings account for a rainy day. Or better yet, open an account with a credit union with it, to develop a future credit relationship. As for your $200 limit card, you could use it slightly each month, to show some activity, but again, there is no advantage to buying anything you wouldn't pay cash for. In 6 months you will have established about the same history, and scores, with this minimal useage as if you somehow tried to "optimize" your credit improvement, but without the risk of messing it up. Your current goal is just to prepare for the next step later, which would be to get a better term non-store card (MC or VISA) from a bank that you would want to grow a credit relationship with. Rushing won't get you there faster. Take some time to study any credit offers you start to get, and also study the companies behind them. It can be costly to open accounts that are not to your advantage, especially if the companies have a history of predatory lending, so do some homework.
(((thank you sooo much ontrack))) if i were near you i'd give you a bigger hug. i appreciate this sooo much
