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Question By
fiveohfour

7 Contributions
18 People Helped
Help me BUILD (From Scratch) My credit @ age 27 (THIN FILE)
Hi.
I Need some help here. I am trying to build my credit at age 27. I have as reported by Credit Karma a "Thin File" and as reported by Credit Sesame a 659 "Fair" Credit score. The only negatives (or positives for that matter) on my credit are old medical bills from around 04-08 that are actually older than that but apparently didn't begin to try to collect until i turned 18 after my parents hadn't paid. Even Credit sesame shows i have a thin file but still manages a score. It shows no debt, no credit cards and no borrowing power.
I have applied for a couple basic credit cards in the past over the years and also for car financing and was always turned down and told i didnt have bad credit i just literally had no credit at all. I think the medical blls also made it more of a risk, each one is from a little ER visit and a hospital stay, nothing ridiculous.
I have just recieved my Capital One Secured Credit card and also will be receiving another secured card from my local bank with which i have my checking account with a $200 and $400 limit respectively.

Ok so heres where i need help. How do i maximize my credit building here. I dont need the credit for anything so I am free to use them in whichever way best builds my credit. I am currently living with family and will be moving away again in the next 6 months to a year and would like to have my credit to where a normal adult with normal life experience who hasnt been sick their whole life would have it.
What are my best practices. My initial instinct would have been to use the cards for just under the limit and pay it off 2 weeks early since i have that ability but after just a tiny amount of reading here its clear that is not the best approach.

Specifically: I see alot of conflicting info about balances and how to and to a lesser degree when to pay and also about Utilization levels and most importantly how they tie in to each other and how to apply that to my monthly practices. Do i want to have a 10% utilization and does that mean i should keep a balance and pay the interest by paying the minimum amount due. PLEASE HELP ME. Also should i charge 150 on it and pay it off right away or a day before the cycle is up or pay it all but 10% or should i only charge 10% to it ever etc. Hopefully a few of you can help me with an active back and forth. I know i have further questions but that is the basics for now. Thanks in advance to anyone that helps.

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Top Contributor
3051 Contributions
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I suggest you go to www.credit.about.com and click on the tab "Learn Credit".  There's lots of great articles about credit cards and how to use them the right way.  Other great info there as well.  You're on the right track, keep up the good work!

Reply by
fiveohfour

7 Contributions
18 People Helped

Thanks i favorited the site and added it to my list of things reading resources. I probably put far too much information in my initial post. What amount should  my first purchase be, what percentage of my credit? The utilization percentage is the amount of debt at the time the billing cycle ends? `Do i want to keep a balance of a few dollars and let that amount be "financed"? I can do that if i need to, i just need the right info, i've seen lots of great info in these threads but very often i see conflicting info just reading two posts in a row, this is why i needed to start my own thread....i cannot afford to make any assumptions and that included assuming someone knows what they are talking about over the next comment. thanks so much

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