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AtlanticBchBum

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Understanding Credit Card limits
I'm looking at getting a secured cc to help rebuild my credit score. I currently have no cc's. I understand also that you should not carry more than 30% of the limit.If I have a card with a $300 limit, use it to it's limit and pay off the account each month, does that adversely impact my credit score? I currently use about $300 a month in fuel and figured I would start paying my fuel with the card and then pay it off at the end off the month.

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Personally I do not subscribe to the theory of only use certain percentage of your credit limit on monthly bases, just for scoring purpose of better your scores, here is my reason why...

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The base of that theory is because your scores changes according to the utilizations, however, many people fail to realize that only the balance on the date and that date only, when credit card companies report your activities to the credit bureaus goes into calculate your utilizations, generally it's when the statement closing date for that cycle. So if you max your card (not advocating it) but pay in full "before" it reports? Then it won't affect your score one bit, it's as if it never happened, opposite holds true as well, if you only use 30% then pay in full on the day after it reports? It won't necessarily better your scores, if your utilizations percentages remain the same as month/cycle before. Or won't get the score benefit of having 0% utilizations.

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Utilizations and to most extend?, the credit scores, has no memories, let's say, you are shopping for car in Dec, they don't ask you what your utilizations and credit scores were in June do they? However, to have better chance when you are applying for credit? Is to pay down/off your balance on the cycle before you apply, so it will reflect it in your report, therefore, better your scores. 

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In most part, credit card companies don't care if you max out your card (again, not advocating it), the issue they would have with you max out your card is you proceed to only pay bare minimum for next few months, it's a sure sign of either you are living beyond your means or in some financial difficulties, they are going to take steps to protect themselves. 

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Many people would nearly max out their card 2~3 times a month and paid it off 2~3 times a month, either because they have low limit but high expenses and or to take full advantages of its cash/mile/spending bonus.

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You plan is a workable plan, you just need safeguards to ensure you maximize your efforts.    While over 30% is not a good Utilization, the best figure is between 2 and 10% actual utilization.   Safeguard #1 Learn your credit cards reporting date and make your payment 2-3 days before that date.  Not the due date.   Safeguard #2 If your credit card has auto pay, sign up for it.    You can usually select a date and an amount.  This is to ensure that you don't fall asleep on a payment.  Safeguard #3 - Write the date on your calendar (and in your phone) so that you remember to pay it.   Do NOT wait, like too many people do; for the bill to arrive.  Sometimes, it doesn't.   Most people do not realize is that the full credit report shows the charges on a card during a month, even if you prepay before due.  The charges are reflected.   Having charges shows useage and credit management.   They key you want is the on time payment credit.  This factors high on your score.  A single missed payment can result easily in a single 100 point reduction which you want to avoid.

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