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old guy new to credit cards needs answers to a few simple questions without spending hours searching as I tried that with no luck.


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So I got started building a credit history and score late I'm 61 and retired . I have had my us bank platinum card for 4 months . I have used it a little and kept my utilization reported to the credit bureaus under 10% , I pay off the card in full each month 695 to 708 cs in that time. I want to use the card for most of my monthly spending for the fraud protection instead of using my debit card.

Question 1.  My credit card limit is $1000 . In 1 billing cycle I want to pay for all my monthly expenses and spend about $3000. Can I spend $500 then pay it off and repeat during the billing cycle without causing problems/red flags with the bank or my credit score?? .

 

Thanks

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Welcome to Creditboards lotta smart people on here. For my 2 cents worth if I'm reading it right , you should be able to do what your planning, and I'm thinking most cards would like that, just payoff by due date, wait till statement cuts should be few days later, repeat.  Ya gotta know what date your statement cuts, maybe leave small balance, other smart people will chime in.

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3 hours ago, DebtFreeIn04 said:

Welcome to Creditboards lotta smart people on here. For my 2 cents worth if I'm reading it right , you should be able to do what your planning, and I'm thinking most cards would like that, just payoff by due date, wait till statement cuts should be few days later, repeat.  Ya gotta know what date your statement cuts, maybe leave small balance, other smart people will chime in.

Don't go over limit during the billing cycle make sure the payment clears.

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6 hours ago, Chinitnabaybob said:

So I got started building a credit history and score late I'm 61 and retired . I have had my us bank platinum card for 4 months . I have used it a little and kept my utilization reported to the credit bureaus under 10% , I pay off the card in full each month 695 to 708 cs in that time. I want to use the card for most of my monthly spending for the fraud protection instead of using my debit card.

Question 1.  My credit card limit is $1000 . In 1 billing cycle I want to pay for all my monthly expenses and spend about $3000. Can I spend $500 then pay it off and repeat during the billing cycle without causing problems/red flags with the bank or my credit score?? .

 

Thanks

Need a few more pieces of info.

 

1. Is that your only card? If not please list others and dates/CLs.

2. Have you had any other credit in the last 10 years like a mortgage or car loan?

3. Have you pulled your credit reports from the 3 CRAs? Any negatives listed?

 

The score you list is consistent with having only one card for 4 months. If that's the case, I would recommend:

 

1. Do not make large purchases then payments multiple times over your CL This is actually a red flag. Credit card fraud often has this sort of pattern and it may trigger their fraud risk algorithms which could cancel your card without notice. This is especially important for people new to credit with short credit histories.

 

2. Since you clearly have decent income and likely savings, get yourself a secured credit card with a large limit. Then you will have the fraud prevention that credit cards offer without running the risk above. This is what I did when I switched from cash/debit cards to credit card use back in 2009. Worked like a charm and the secured cards converted to unsecured.

 

3. As soon as you add a second card (secured or not), your FICO score will jump up significantly. Same with a third card a few months later though not as much.

 

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3 hours ago, cashnocredit said:

Need a few more pieces of info.

 

1. Is that your only card? If not please list others and dates/CLs.

2. Have you had any other credit in the last 10 years like a mortgage or car loan?

3. Have you pulled your credit reports from the 3 CRAs? Any negatives listed?

 

The score you list is consistent with having only one card for 4 months. If that's the case, I would recommend:

 

1. Do not make large purchases then payments multiple times over your CL This is actually a red flag. Credit card fraud often has this sort of pattern and it may trigger their fraud risk algorithms which could cancel your card without notice. This is especially important for people new to credit with short credit histories.

 

2. Since you clearly have decent income and likely savings, get yourself a secured credit card with a large limit. Then you will have the fraud prevention that credit cards offer without running the risk above. This is what I did when I switched from cash/debit cards to credit card use back in 2009. Worked like a charm and the secured cards converted to unsecured.

 

3. As soon as you add a second card (secured or not), your FICO score will jump up significantly. Same with a third card a few months later though not as much.

 

Thanks for the info.

I only have the 1 card. I have never used credit in any form before . No negatives on the 3 CRAs . Before this card they always came back insufficient credit history. The score I listed is vantagescore 3.0 as I guess I need 6 months record before I get a fico score.

When I got the platinum card I was calling the bank to see about a secured card as even self lender turned me down and the bank encouraged me to apply for a regular card and surprise to me I was approved. Maybe It was because I have been with the bank for more than 25 years without any overdrafts or issues , when I retired from the military 18 years ago I had my retirement  direct deposit and I built both my homes myself with cash.

 I think I will just go slow and charge $300 to $400 a month for the next 2 months paying it off in full  but having the balance at 9% at closing (13th-15th of the month) and at reporting ,usbank reports whatever the balance is on the last day of the month from what I see reported at credit karma as utilization%.

 My thinking right now is to ask for a CL increase after I have 6 months on the card and I get a fico score then apply for a cash back card. I would like to get to 3 credit cards asap so my average length of credit can grow as fast as possible.

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11 hours ago, Chinitnabaybob said:

Thanks for the info.

I only have the 1 card. I have never used credit in any form before . No negatives on the 3 CRAs . Before this card they always came back insufficient credit history. The score I listed is vantagescore 3.0 as I guess I need 6 months record before I get a fico score.

When I got the platinum card I was calling the bank to see about a secured card as even self lender turned me down and the bank encouraged me to apply for a regular card and surprise to me I was approved. Maybe It was because I have been with the bank for more than 25 years without any overdrafts or issues , when I retired from the military 18 years ago I had my retirement  direct deposit and I built both my homes myself with cash.

 

 I think I will just go slow and charge $300 to $400 a month for the next 2 months paying it off in full  but having the balance at 9% at closing (13th-15th of the month) and at reporting ,usbank reports whatever the balance is on the last day of the month from what I see reported at credit karma as utilization%.

 

 My thinking right now is to ask for a CL increase after I have 6 months on the card and I get a fico score then apply for a cash back card. I would like to get to 3 credit cards asap so my average length of credit can grow as fast as possible.

 

Nice. Yep, the bank encouraged you to get a regular card because you have banked their so long. You were an ideal candidate for a starter card with them.

 

But if you have the cash, I can't recommend strongly enough to get a secured card at a national bank like Citi, Wells, or any that will unsecure in a year or so. Especially if you can put 5 or 10k deposit on it. I had zero credit cards at the start of 2009 and no record of mortgages/car loans since the last time I had any of those was over 10 years prior and they had all dropped off. I kick started things by getting a 25k Citi secured and a 10k Wells secured and both unsecured after about a year. And they left no trace that they were ever secured on my credit reports after they unsecured. Smooth sailing after that.

 

You are in a special situation. Normally, things like keeping low balances reporting to optimize FICO scores is good advice. But, at this point you should completely ignore trying to keep the reporting balance low. Let it run up with your normal spending but just don't let it go over the CL. Perfectly OK, desirable even, to let a very high balance report. Just pay it in full. While it drops your credit score during this time, it won't affect things negatively when you apply for another card later as long as you take care to make sure that the reported balance is low, but not zero, just before you apply for a new card.  Having a record of relatively larger balances in the past means you used the card and paid it and that will never be seen as negative. Just so long as you have a low balance reporting on your reports before apping for a new card.

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Sounds like a confusing, needless strategy. Tabbing up a card then paying it off three times in a month means you already have the 3K. Why not just write some checks? It also raises suspicion as others have said. Besides, the billing cycle may not work fast enough to accommodate you.

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