I received my BK7 discharge 11/03.I have recently applied for and received a Cap1 Plat with 300cl at 12.9 and a household for 300cl at 17.9.My question.Is it better to use these cards to the max and pay them off each month or maybe use only half the credit line and pay off monthly? TIA
From what I understand, the 2 CC's that you have do not report a CL. My wife also has an HH (Orchard) and our plan is to max it out and keep it close to the CL for a couple months, only paying the minimum. That way, the high balance is reported like a CL to the CRA's. Then, we will pay it off and keep it between 0% and 20% of the CL, which is ideal for utilization. Over time, if the CL is increased, we will do the same thing. Be careful when maxing the sub prime accounts, as interest accrues, you may accidently go over the limit, which is extremely bad in any case, but more so with sub prime CC's. Get a little history with these accounts to rebuild.
From what I understand, the 2 CC's that you have do not report a CL. My wife also has an HH (Orchard) and our plan is to max it out and keep it close to the CL for a couple months, only paying the minimum. That way, the high balance is reported like a CL to the CRA's. Then, we will pay it off and keep it between 0% and 20% of the CL, which is ideal for utilization. Over time, if the CL is increased, we will do the same thing. Be careful when maxing the sub prime accounts, as interest accrues, you may accidently go over the limit, which is extremely bad in any case, but more so with sub prime CC's. Get a little history with these accounts to rebuild.
From what I understand, the 2 CC's that you have do not report a CL. My wife also has an HH (Orchard) and our plan is to max it out and keep it close to the CL for a couple months, only paying the minimum. That way, the high balance is reported like a CL to the CRA's. Then, we will pay it off and keep it between 0% and 20% of the CL, which is ideal for utilization. Best thing is to use for atleast $1.00 per month, then just pay off the balance. Perhaps keeping a balance every 3 - 6 months, allowing them to make a little money off of you. Over time, if the CL is increased, we will do the same thing. Be careful when maxing the sub prime accounts, as interest accrues, you may accidently go over the limit, which is extremely bad in any case, but more so with sub prime CC's. Get a little history with these accounts to rebuild.
Also be careful to take into consideration when charging up the card that the 'annual fee' will get booked to the card within the first couple of months so DON'T FORGET to leave room (money) on the card for the fee's that will be added otherwise you will go over your limit. Also be disciplined in your endeavor. When you say you will charge the max and pay the minimum for a couple of months then pay the card off in FULL, do it. Don't fall into the same credit trap that you were recently in.
DH and I just got these two cards, and the fee ($39 and $59 arghhh) was immediately taken out. IE, if CL was $500, we had $461 available. Just an FYI
In rebuilding your credit or establishing your, i work with one the major credit card companies that's far better than chase and discover card. What they look at this is, if you have a credit card, don't keep a balance on the credit card that increased your debt to ratio percentage. What they look at is this when you have a credit card use it, though make sure you have the money to pay it right back. Use your credit card to get gas, buy grociers, etc that you would use cash to buy, then turn around and pay your credit card off. that is the goal pay it off, all they care about is if you pay it off or not, that's how you restablish credit. before I have to approve and issue a credit card that's what we look at it.
I have a Capital One card with a small credit limit. I pay it off weekly. I charge gas, food, etc. to my card. In a one months time period I charge 4 times what my credit limit is. I figure in another 4-6 months Capital One will increase me a good amount.
Neil- The company I'm with is one of the oldest credit card companies. If you e-mail me I will tell you, though honestly I'm not allowed to share a lot of their information. They are the company that owns copyright to the word "platinum card", they sued VISA because didn't asked to use that word.
Neil- The company I'm with is one of the oldest credit card companies. If you e-mail me I will tell you, though honestly I'm not allowed to share a lot of their information. They are the company that owns copyright to the word "platinum card", they sued VISA because didn't asked to use that word.
You may want to look at a passbook loan with a credit union or a local bank. Make sure they report the loan to the CRA's. Be patient and think in terms of years instead of months, it will probably take at least 2 to 3 years before you get prime credit cards.
