Question : What is a good credit limit to set for myself on my secured credit card in order to best benefit my score?
I got a wellsfargo secured credit card and gave myself a limit of 500. I then checked my credit report and it said that small credit limits hurt your credit. should I up my credit limit? If so, whats the best limit to get to best increase my credit score. and whats the best way to use the card?
- asked by jjs8ig
All Answers:
Answer #1
I would say twenty five hundred and keep it under35% balance. If you have a bank account then get adebit card and you wont over spend.
- answered by rallman@sbcglobal.net
Answer #2
Sorry, but you are better to have a pocket full ofpennies than one of those secured cards. You arenot building better credit with one of thosethings, they are just another way to rip off anignorant consumer.Update: Contrary to what EMontisays, they do not build credit. In fact it's asilly proposition all the way around, because youare securing it with your own money, and if youhave a balance at the end of the period you payinterest on it!
- answered by Frank R
Answer #3
I agree with Frank.
- answered by BloodLust
Answer #4
your credit limit reflects your debt ractio or howmuch your worth... you could raise it and not getinto trouble with it by not using it. Personally,I would leave it at $500 for about90-120 daysbefor increasing it. If you are trying to buildyour credit up, use the card for small things,grocery, gas...be sure to pay it off at the end ofthe month. This will make your creditscoreincrease
- answered by Nikki S
Answer #5
Frank is full of it. Sorry to say. A securedcard will show up EXACTLY LIKE a regular,unsecured card on your credit report. Here's agood way to establish a limit on a secured cardfor yourself... estimate what you will be spendingon it per month (assuming you will pay it off infull every month) then triple it, and that shouldbe your limit. This way your balance will alwaysbe 30% of your total available credit limit, don'tgo over that percentage or it will actually hurtyour score.Although most secured cards havefees... they are an excellent way to build up yourcredit, sometimes even the only way.
- answered by EMonti
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