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Betterdaysahead

Began the journey, what’s next?

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So after a few years of bad breaks and not the best decisions, I’m finally on the right track. I have banked with BofA for many years, I have direct deposit for my paycheck with them.

After having no cards for many years, and my FICO slowly moving to mid 600’s I decided to apply for their reward cards. I was denied but offered a partially secured card for $99.

 

I received the card and made a small purchase - $16 grocery store. I haven’t purchased anything else yet, I guess I was trying to make sure it really worked.

 

What do I do next? I know there are theories about utilization and when to pay full balance. Any suggestions on how I should use the card to help me continue to raise my credit score.

 

 

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How much is the limit and what is the total amount of monthly spending that could be put on the card (where you would otherwise use a different form of payment)?

 

I know that most of the discussion about utilization is about percentages, but if you have a $5,000 limit and only $400 in monthly charges, I wouldn't waste a lot of time micromanaging utilization to keep it > $0 but, say, at 1% instead of 8%.

 

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On 1/15/2020 at 6:57 PM, Betterdaysahead said:

 

So after a few years of bad breaks and not the best decisions, I’m finally on the right track. I have banked with BofA for many years, I have direct deposit for my paycheck with them.

After having no cards for many years, and my FICO slowly moving to mid 600’s I decided to apply for their reward cards. I was denied but offered a partially secured card for $99.

 

I received the card and made a small purchase - $16 grocery store. I haven’t purchased anything else yet, I guess I was trying to make sure it really worked.

 

What do I do next? I know there are theories about utilization and when to pay full balance. Any suggestions on how I should use the card to help me continue to raise my credit score.

 

 

Sent from my iPhone using Tapatalk

 

 

Use it as needed, but pay off the whole balance except for $2 prior to statement date.  Search the forum for "$2 Trick" or "$2 Hack".

 

Your account will be considered new for about two years and it will take time for your score to increase significantly.  Use the card as needed and continue to pay on time, every time.  I'd probably be looking at adding another card to the portfolio.

 

Equally, if not more, important, though, is to work on any derogatory data still on your credit bureau reports.  

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