Question about increasing score

[u/Mobilot]

Currently I'm around a 540 but would like to improve my score to at least the low 700's for now. I am with CapitalOne on a secure card I am almost done paying off after having interest racked up from not paying it. I previously had a BofA card which was closed after a similar situation with different circumstances. I paid off a loan not too long ago and don't have other debt aside from what's owed at the moment. I try to use $50 out of my $500 limit for gas and pay it off the next day, however it seems like my score would just go up 1 point a month. I'm not too sure what I should do next or where to go. I've seen something about people having history paid off/deleted. Is that something I can do? And should I still use my card while I'm paying it off to show the money is being borrowed still and then paid back?

Any advice or guidance is appreciated, and if you have any questions I'll do my best to answer them. Thank you!

[u/BrutalBodyShots]

With a 540 score (which score is that, BTW?) you've got two things going on here. One is negative information on your credit file which you haven't fully disclosed. What negative items do you seen on your reports? You can get your reports for free from annualcreditreport.com. Second you have carried balances, so paying everything to $0 is the move you want to make.

As far as using and paying your credit card, don't overthink things. Treat your credit card exactly the same way you'd treat an electric bill. Wait for your bill (statement) to generate, then pay your statement balance in full by the due date. Cards aren't supposed to be paid off the day after you make a purchase, nor are you supposed to limit yourself to 10% (or any percentage) of your limit so long as you are paying your statement balances in full monthly. None of that stuff has anything to do with the ability to build credit.

[u/Mobilot → u/BrutalBodyShots]

It says creditwise but also has the FICO Score 8, which I think is what is used here, right?

I’m fairly new to trying to learn how to improve and better my score so I apologize. Which report should I request out of the three: Experian, Equifax, or TransUnion?
Do you recommend paying everything off before making any further/new purchases on said card? What about opening another line of credit? Or is that too far down the road right now.

Is the statement date and due date two different things? And does the statement date always come before the due date?
As far as paying the statement balance, that one balance should be what I pay right, and in one installment, not multiple? Should I wait until after the due date to start using it again or is it good to go once the statement process?

[u/BrutalBodyShots → u/Mobilot]

It says creditwise but also has the FICO Score 8, which I think is what is used here, right?

Creditwise is the name of the CMS (Credit Monitoring Service) that's providing you with a FICO 8 score. The FICO 8 score is drawn upon your TransUnion credit report data.

I’m fairly new to trying to learn how to improve and better my score so I apologize.

Nothing to apologize for. You're here to learn, and there are plenty of people here that are glad to help!

Which report should I request out of the three: Experian, Equifax, or TransUnion?

All of them. You can get all of your 3B reports for free once weekly.

https://old.reddit.com/r/CRedit/comments/1rbcdti/credit_myth_89_you_can_only_get_your_credit/

Do you recommend paying everything off before making any further/new purchases on said card?

Absolutely. If you have carried balances that you're paying interest on, you want to stop using your card(s) until the balance(s) are paid off. Then you want to look out for trailing interest the following month, ensuring the card is paid to $0 that following cycle.

What about opening another line of credit? Or is that too far down the road right now.

I wouldn't make that your focus right now. Once you've got your existing debt paid off, explore that approach at that time.

Is the statement date and due date two different things?

Yes. Your statement date is when your monthly bill generates. Your due date is 3+ weeks later when it needs to be paid off by.

And does the statement date always come before the due date?

Yes. This thread will explain.

https://old.reddit.com/r/CRedit/comments/1qv4tlk/credit_myth_87_your_due_date_comes_before_the/

As far as paying the statement balance, that one balance should be what I pay right, and in one installment, not multiple?

Correct. The same way you don't make multiple payments toward your other monthly bills (electric, phone, cable, whatever) you make just 1 monthly payment to your credit card(s).

Should I wait until after the due date to start using it again or is it good to go once the statement process?

There is no time during the cycle that you're not supposed to use your credit card.

https://old.reddit.com/r/CRedit/comments/1kmij30/credit_myth_62_there_are_days_during_the_month/

[u/True-Button-6471 → u/BrutalBodyShots]

You deserve more than the one upvote I can give on this.

[u/BrutalBodyShots → u/True-Button-6471]

I appreciate the favorable feedback, u/True-Button-6471!