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?|||Frank is full of it. Sorry to say. A secured card will show up EXACTLY LIKE a regular, unsecured card on your credit report. Here's a good way to establish a limit on a secured card for yourself... estimate what you will be spending on it per month (assuming you will pay it off in full every month) then triple it, and that should be your limit. This way your balance will always be 30% of your total available credit limit, don't go over that percentage or it will actually hurt your score.
Although most secured cards have fees... they are an excellent way to build up your credit, sometimes even the only way.|||I would say twenty five hundred and keep it under 35% balance. If you have a bank account then get a debit card and you wont over spend.|||your credit limit reflects your debt ractio or how much your worth... you could raise it and not get into trouble with it by not using it. Personally, I would leave it at $500 for about
90-120 days befor increasing it. If you are trying to build your credit up, use the card for small things, grocery, gas...be sure to pay it off at the end of the month. This will make your credit
score increase|||I agree with Frank.|||Sorry, but you are better to have a pocket full of pennies than one of those secured cards. You are not building better credit with one of those things, they are just another way to rip off an ignorant consumer.
Update: Contrary to what EMonti says, they do not build credit. In fact it's a silly proposition all the way around, because you are securing it with your own money, and if you have a balance at the end of the period you pay interest on it!
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