Hello everyone.
I've been working on my credit score and I've read countless articles and some seem biased and some seem more truthful, but I'd like to get some concrete advice to help my financial future.
My credit score was 535 when I had a collection of a $500 credit card almost five months ago. It was an old card I didn't pay on due to financial problems years ago, and it's been paid in full since the last week of December.
Now I have the secure Capital One platinum card with a $200 limit. My first monthly payment was a few weeks ago, which I had automatically drafted from my bank account, and I checked my credit score once it updated and it was astonishingly 650. I couldn't believe it and I checked with the Capital One app and it said something similar (my first source was Credit Karma.), and I'm looking to hit 700+
I've had an incredibly stable job for 4 years now, and I have a good amount of expendable income I'm saving into a CD. I have two main questions:
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Using this $200 secured card, is making on time payments the only thing I can do to help my credit score? Car is paid off and all bills are drafted so I don't know of any way.
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Is the 30% credit usage a good rule of thumb? I've heard many successful friends using their credit card as their main source of spending, only to pay it in full every month. My income definitely allows this, I just don't know if it'd help my credit or not. Especially on a 200 limit.
I tried to apply for a discover it card but was unfortunately declined. I know that may cause a ding on my credit score so I'll wait until my score is 700+ to apply again since that seems like a good card.
Thanks for any help!
Submitted April 01, 2017 at 01:21AM by completelyan0n http://ift.tt/2os8m54
