Questions on new credit building and payments

Questions on new credit building and payments
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Hello, new user and first post. Hope I posted in right place. I just obtained my first ever credit card late in life, secured through my bank due to lack of credit history. I check CK and it showed a 652 on TR and EQ, but nothing with EX and no FICO score. With a $300 limit my first purchase was $44 with a 15 percent utilization, statement came to email on 9/13 with due date of 10/9 paid in full on 9/14. Balance reset to original limit. My question is since I paid off balance in full, I have used card on 9/17 for $60 ( which I will pay down to 10 percent before next statement ) it still shows due date of 10/9 on my online account,next payment due should be Nov. If my closing date is the 13th. Trying to avoid any late payments and interest charges. But on the good side with new card and first use I checked CK and had increase in my EQ score to 730 and TR went up to 716. Thanks for helping on these closing,due date question


Hi, @robertday645, and welcome! Yes, you posted in the right place.

Good for you on beginning to establish credit!

I can answer a couple of questions, and then I have some for you. First, it will take at least six months of credit history to get a FICO score. As you have seen, you get a VantageScore (the free score offered by NerdWallet), much sooner than that. In general, it’s your statement balance that is reported to the credit bureaus. So it is likely that the $44 was recorded as your balance. Paying before the due date (but after statement issued) doesn’t help your credit score any more than any other on-time payment. As for why Experian is not reporting it yet, it could be a couple of things. One is that the card reports to two credit bureaus. Another could be related to how often the score or report you are looking at updates.

Though your score is moving up impressively, you still have what is called a “thin file” (very little information for potential creditors). You can fatten that up a couple of ways. One is you can look for a “credit-builder loan” — a product designed to help people establish or rebuild credit. Another is getting a friend or relative with good credit to add you as an authorized user to a credit card that is several years old, with an excellent record of on-time payments. (In that case, you don’t even need a physical card, just having the information added to your file can strengthen your credit.)

Here are my questions for you:
Can you pay online, as soon as charges post? If you are able to use the new card almost like a debit card and keep your utilization ultralow, that can be useful. In my own experience, if my utilization has risen from, say, 2% to 4%, it has affected my score. Lower utilization is better.

Are you looking to establish credit for any particular reason/goal? (If so, you may want to check out this post on how long it’s likely to take.)

Congratulations to you for getting started!


I am new to credit cards,and had a lot of questions to be honest. Researched a lot and ask friends a few questions, that is when I got conflicting info. Like if I payed before due date and used card again that it would still be owed by original due date instead of being due a month later. I figured paying before due date didn’t help, i just like to pay off when I get statement or as it post on my online account. I never saw any point in waiting to pay bills, especially if I know the amount and have already received the bill. but if I payed before due date and used card closer to statement closing date it gives more time to use banks money in a way. Having a thin file is what hurts me, I always been told if you can’t pay cash for it you don’t need it,and that has worked most of my life. But having available credit if an emergency comes up is helpful. In regards to your questions, yes I can pay online. I used card couple of days after my statement closed,which ended my billing cycle for $60 which is 20 percent of a $300 limit. The transaction posted in my account last night and I paid it down to $24,under 10 percent before next statement comes out. I have been told to Carry a small balance every now and then,but that is something I don’t see as helpful and plan to never carry a balance. I am looking to raise my score for a reason, in about 3 years I plan on moving back to my hometown. Renting a home is $1200 a month versus buying one at $200 to $300 a month. Talked with my bank which I have been with for a long time, and due to me having no prior credit history. I told them starting with secured card, then moving to unsecured and a small personal loan when I add to credit history they agree that should add to my profile to help. Hope this helps you understand what I am looking for and trying to achieve. Thank you for your input Bev


Hi, @robertday645.

You do not have to carry a small balance. You can pay off your credit card every single month (even before statement is issued if you want) and have excellent credit.

If you have the cash to do so, you might ask for bank if you can take out a loan against a deposit account (such as a CD). That typically gets you a lower interest rate than a personal loan.

Sounds like you are absolutely on the right track!