Best way to use a credit card

[CreditCrisis]

ok..just wondering, what is the best way to use a secured credit card to start re establishing GOOD credit?

i was finally approved for a card and its on the way. the limit is $200. i've heard not to go over 30% and 40% the balance. which do you think would be the best? i plan to extend my card to $1,000 and use it monthly to pay our car payment then pay the credit card off the end of every month. figure i could build two TL's for literally the price of one.

Thoughts? Comments? Suggestions?.....jokes? lol :D

[Trish]

I have been told by a mortgage consultant that used a "score simulator" that the best score comes by 30% or less utilization.

Others will say keep it below 50% but I really think it's best to play it safe.

If you can afford to pay off the card each month.......do it. The only reason I say this is that those secured cards (and most cards that are for less than perfect scores) have such HIGH interest rates that they rob you blind with fees.

If you are going to leave a balance though.....try to keep it below 30% of the credit limit.

[scorch]

Some people may be anal enough to say not to let your balance exceed 30% of your credit limit at ANY time. That credit limit is low. I would be afraid to use it. :p

Yea I have 2 credit cards and have been using one to pay the other and pay the first one every month, but I have been getting annoyed with doing that and want to just pay it all down already...