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kimofry122

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18 and trying to build credit score with a secured card?
I just got a secured card from Capital Bank (the only card I could get) because I had a collections account on my credit since I was 15 that I only saw 3 years later when I tried to get my first credit card. I've since had that account removed but it tanked my score and I'm starting out at a measly 628/632. My credit limit for the secured card is only $200.. I'm wondering if I should spend a lot and pay it all back quickly, or spend little bits and pay it back piece by piece?

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Hi kimofry122! Good for you for trying to build you credit score. You're on the right track. The Capital One secured credit card is a great card for that purpose. Just make sure it's actually the credit card and not a prepaid debit card, as the latter won't help you build credit. Use the card as you would an unsecured credit card. Target 20% utilization, or $40, per month. Pay it off in full every month. It doesn't seem like much, but in as little as three months, as long as you can demonstrate that you're using and paying it down responsibily, your credit score should improve.

I started out using the same card, also with a $200 limit. After I was able to build my credit up a little, I then applied for a Capital One unsecured credit card for those with low credit. My credit limit was $500. After 3 months of using that card appropriately, I called the bank and had my credit limit increased to $1,000. Hope this helps! 

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