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llamacat

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106 Point dive in a month...
All I did was max out my secured card. My bank rep said to do so every month (300 max) I use it on gas and tolls for work which nukes the entire balance. for 6 months to build credit so I could get pulled off secured faster.

I have a $304 balance (101% utilization) on the card as of right now which shows on CK too but that will not be due until 10/15, and I will not get the bill until near end of the month.

I always pay it off in full too. I went from Average to Poor in a month... What should I be doing to correct this?


- Side note My credit profile is 2 months old only, Previously had thin file

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Well not only did you max it out, but you went over your limit. Two no-nos. I suggest you send in a partial payment ASAP to get the balance below the limit. You may be penalized with a fee for going over. Also, if you've got a thin file already then a slip like this is going to have a much larger affect on your score. You're trying to establish credit, so its more important than ever to do everything right.

I don't care for the advisor's suggested technique for using the card. You should always keep you total revolving debt at less than 20% of your available credit. So if this card is your only card, then $300 is your limit. You should only have $60 or less on it at any one time.

If you can, pay off the card ASAP and then only use it for purchases up to $60. Make sure you make payments every month, on time, and pay more than the minimum due.

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Thanks for the reply,

   This months over the limit was due to the yearly fee for the card so hopefully that will not go against anything but I did pay off the entire balance again today. I definitely do not want to keep a lingering balance so I get charged interest. This is pretty much my only credit builder as I decided to pay my car that I just bought in full instead of putting 1-5k into a loan to pay off and then pay rest off on car right away which parents said to do.

Since my credit is new aswell, I am quite worried that T-Mobile is another reason that my credit crashed so badly. When I had them I had no credit history, I had to pay a $300 deposit to even get a Galaxy S4 or any Device. When I cancelled two months ago I payed off the balance right away instead of waiting for final bill in mail, last month I recieved  27 "Credit Denial" letters from T-Mobile before I even got my final bill. If they messed up and did that many hardpulls Im pretty sure that would ruin things pretty badly.

I have no outstanding loans, past-dues or anything of the sort so If I stick to doing it right I hope it does not take too long to climb.

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NO!

Very bad to go above 30% utilization. Never do that. When you go above it shows you are irresponsible. The only way to "fix" this is to raise your credit limit. I would suggest speaking to someone at the bank who knows more about credit. Someone gave you misinformation if they told you to max out the card. Yes you should use it every month and pay it every month, but never go above 30%.

See if you can put more money into the secured account to raise the credit limit. That will be the only way to make that account look good unfortunately. Because now it will always show you went over the limit. Im telling you, thats bad.

Clarifi credit counseling offers free sessions. They are great and can give you more info on building your credit. They do phone meetings also.

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