What's the most effective way to maintain new credit cards

batcave wrote: ↑ Pay your bills on time. I have all of my credit card accounts paid on the due date, never before. Back in the day, American Express charge cards were due on the day before the date of the next statement. In those days I had to mail in cheques (I'm old) I dated them for the day before the next statement. I don't think it is necessary to pay before the due date. If they wanted the funds sooner, they would make the due date sooner.

If you pay your bills on time, you won't have to worry about your credit score.

masterman wrote: ↑ The problem is, for people like the OP, they have no choice to pay at least some of the charges before the statement cuts because of the low limits.
If they stuck to the 30% utilization rule, that’s $240 OP can spend each month without exceeding the 30%.
That doesn’t even cover my bills let alone other expenses.

masterman wrote: ↑ The problem is, for people like the OP, they have no choice to pay at least some of the charges before the statement cuts because of the low limits.
If they stuck to the 30% utilization rule, that’s $240 OP can spend each month without exceeding the 30%.
That doesn’t even cover my bills let alone other expenses.

OP pre-authorized charges have nothing to do with getting a higher credit limit.
As for the reporting of the account, it doesn’t matter when you pay, what matters is that you do pay.
Each reporting covers your payment behaviour, and the fact that you are using the card.
Don’t try and rush a limit increase, let it come to you, you don’t want to sound desperate.
Most lenders will reward usage and in full on time payments by offering you more credit, as long as you keep that utilization low, and your payment history perfect.
Don’t go crazy applying for more credit products either.
Time is your best friend.

john4001 wrote: ↑ Hey, thanks for the pointers!

I think my pre-auth. comment was more about having a credit card where the only charges , ever, would be a couple pre-authorized items, that would be within my 30 pct utilization. I was just wondering if the scant activity (1-2 charges per month) looks worse that more frequent/natural activity (in terms of CL increases at least)

In terms of reporting though, lets say on the $300 card, I spend 40$ each month, and always pay it right away before the billing date. Would that not look worse? Since my reported bill each month would be 0$?

I'm happy with ...encouraging .... a CL increase lol, have a good relationship with money and bills and a steady income. Just one dumb youthful mistake a few yrs back.

• Hold off on applying for any more credit for at least six months
• Use credit cards for all applicable purchases. i.e. avoid cash & debit
• Pay off the credit cards IN FULL a day or two before it is due. (You only need to make the minimum payment to help your credit rating. But if you are not paying in full every month, then I would not recommend using credit cards at all.)
• If you are close to your limit to the point where you can't make your regular purchases on your card, then make a payment to give yourself spending room.
• Accept any CLI offered. Ask for one in each after about 3-4 months. I know Cap1 is stingy. I don't know anything about NB. Even if you get declined, they may give you guidance on when you can get it.
• Consider getting an Amex after showing good credit stability in payments in your other two. If your CL is still low, make sure your utilization is reasonable when you do apply. If you are staying under 30%, that would mean under $240 on the two cards if you don't get a CLI. Amex is pretty good on extending a little credit and also good on increasing it based on having a responsible history with them. Whatever Amex you do consider getting, make sure it is one that is likely a keeper. So, stick to a no fee card or one where the annual fee is worth the perks for you on an ongoing basis. At this point, you will want keeper cards to build up your average age of account for more flexibility in the future.

batcave wrote: ↑ Pay your bills on time. I have all of my credit card accounts paid on the due date, never before. Back in the day, American Express charge cards were due on the day before the date of the next statement. In those days I had to mail in cheques (I'm old) I dated them for the day before the next statement. I don't think it is necessary to pay before the due date. If they wanted the funds sooner, they would make the due date sooner.

If you pay your bills on time, you won't have to worry about your credit score.

Techiedude wrote: ↑ Why never before?

Techiedude wrote: ↑Just curious as I know you have a collection

batcave wrote: ↑ It is a habit, plus it is programmed to be withdrawn on the due date, not sooner. When I had a mortgage, I would run everything through a LOC. My pay would be deposited in the account and my mortgage and bills would be paid from that account. I would try to maintain a zero balance for as much a possible because a positive balance is useless. If there was a positive balance, I would prepay my mortgage with that amount. If bills, including mortgage, were due a few days before I was paid, I might borrow the amount from the LOC to pay the bill and then my pay would repay the short term loan. It is a method to pay as little mortgage interest as possible. It was always better to save $3 of mortgage interest and pay $1 of LOC interest than have money sitting in a bank account or my wallet. I've never really had or used a savings account because of this practice.

If one doesn't have excessive amounts, having money has an opportunity cost. Just like monitoring the due dates of bills and paying them manually is an opportunity cost. I would rather spend that time on making real money or simply enjoying my life.


The card collection was always just for fun.

Techiedude wrote: ↑ That’s how I do it now with a loc :P but I move money. I have a collection you could say, I’m at 16 cards but I’m still always keeping balances at 0 or negative. Wondering if there’s any real advantage as I know you have a stack and get approved for all the news ones so curious if your method helps with that

batcave wrote: ↑ As soon as I get a new card I will set it up on pre-authorized payments so there is no opportunity to forget to pay the bill. Set it and forget it. The other advantage of a LOC, are no NSF charges, related fees or high interest rates.

mech9t5 wrote: ↑ If you're paying a mortgages out of a loc, you better make sure the mortgage and loc are not from the same institution.

They frown on paying debt with debt even if it is a positive balance.

Techiedude wrote: ↑ Some people use their loc like a chequing account, mines always at 0, i login every morning to make sure of it, why do i do it? No idea, but I find it neat and tiddy :P I don't like carrying my debit card around anymore and I've had incidents where for example a Rogers Bill was ape s**t for some reason, 8k vs my regular under $300 a month, they took the 8k from my account and it took like 3 months to resolve, after that I noticed with my LOC a call in on an incident and moneys back in no time.

mech9t5 wrote: ↑ why did you quote me? I don't really understand your point.

Techiedude wrote: ↑ You were saying they frown on paying debt with debt. Most places I don’t think would really care was my only real point. Lots of folks here report using their CIBC loc as a chequing account

mech9t5 wrote: ↑ I don't think you understand "paying debt with debt". Your example of a Rogers bill has nothing to do with debt. That is a service you are paying for and is not considered debt.

Examples of debt instruments are mortgage, LOC, credit card, etc. The banking industry in general frowns on the practice of paying debt with debt, not just CIBC.