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What is the best way to utilize new credit card in order to rebuild credit?
To start off, my TU score is currently 538, and my Equifax is 602 per Credit Karma. Not good, I know, but I just got approved for a Capital One Quicksilver One card with a $300 credit limit. I plan on using this to improve my credit scores, and was wondering the best way to go about it. I plan on using it to auto-pay for something (internet bill is $50, Directv is about $160 etc). They are already auto-paid from my debit card, so paying it off the credit card won't be an issue. With the $300 credit limit in mind, what is a good amount to charge to the credit card, that will be paid off at the end of the cycle? Also, should I wait until after the statement date, and before due date, or pay it as soon as possible after charging?

Thank you in advance

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Under 9%

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The best is if you can keep usage under 9%.  Since your card is a low limit it might be hard to do that at this point.  So maybe only use it for the cable bill of $50.  This will keep you under 20% usage and still allow a monthly use and payment to help build the credit. After about a year I would ask them for a credit increase.  Depending on how they report it it could still show 0% as long as you are paying it every month, but sometimes the timing would show a balance.

Sounds like you are on the right track to building that score, congratulations.

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You have the right idea and as you are already used to paying it from your available cash.   You will have two dates that you need to put on your calendar.  One is the due date of the card, always ensure that by the due date you pay any balance in full so that you are not paying interest and costing you additional money.  Never wait until the actual due date, use the auto pay feature on Capital one and select a couple days before the due date.   When your balance is high, you can make two payments a month.  The additional payment would be "before" Capital one reports your balance to the credit bureau.  You can see the reporting date by reviewing the accoune here on Credit Karma.  Its usually a week or so before the actual due date.   When you make this mid payment, you should pay all that you can so that your balance on the statement would never be more than $30.  This would be 10% of your available credit left on the statement.  This is considered an excellent utilization (amount due compared to available credit).   Good luck and in about 6 months time, let us know how well you are doing and be proud of that credit score increase.

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Easy Steps

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I'd been restoring my credit for the past 1-2 yrs! Currently High (700). Remember this patter, use the card for stuff you would normaly pay cash/debit card.

If your limit is $300, $600 or $1,200 it really does not matter!? What matters is how much you pay back and the time you pay it!

The credit companies will report to the credit bureau on the 4th week of each month! (Keep this in mind) So here are the best and easy steps.

1. Used the card don't be afraid it is your money after all!

2. Pay on time!! You can change due date's if needed!?

3. Give high payments back (DO NOT GIVE MINIMUM PAYMENT'S) that will get you knowhere fast.

4. Prioritize your spending, need's versus want's.

5. Keep track on your balance and available credit.

‚Äč6. The rule of credit is, maintainin a 30% debt revolving. That's for life!

7. Monitor your credit, Here @ Credit Karma (Not payed to say that).

8. Don't run a credit check no more then once a year! (High impact if you do)

9. Only keep one or two credit card's ever! If you have an auto load then just open or keep one card! (High impact)

10. Time and Patience! In 6 month's you will see a huge jump and credit increases (Impact) if you stick with the program!

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Your list is a very good one, but I would refute a bit.  29% Usage is NOT optimium, under 9% is. Only having one or two card is not true, IF YOU CAN REFRAIN FROM OVER USE, in fact 10 cards is better for your score, as long as you have auto and home loans in with them. As far credit checks, I am mid 800's and consistantly have 1-3 credit checks. This item is a low impact, and the only time it really comes into plat for me is at mortgage time. even with three on my report the only one they asked about was one from another mortgage company.

I really like your bringing in the points of changing the payment day of your cards, if done correctly that really can show the lowest reported usage.  

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