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If you are a person who pays your bills on time with your loan payments as well as debts, do not have any repossessions or collections, not declared for bankruptcy then it is most unlikely that having a credit card balance will actually have some effect on that rating of your credit. This is very true in the country of Canada. It is not that it is not the same in other countries but still it does matter a lot here.
As Capital One suggest if you have no form of creditor even if you are recovering from a credit that has been bad then a credit card is sure to help you build good credit even if not great credit and hence offset that bad history of yours with your credit. A secured credit card does not cost you so much and hence this is provided by Capital One even though you are not earning an income that is good enough. However you need to be careful about applying for these credit cards as some of them will need some credit inquiries which will actually put a black mark on your name as well as your credit report. Most of the lenders are deterred if they sight more than about four credit inquiries in a period of six months.
Once you have a Capital One credit card in your hand then you can make purchases that are small and then pay it off as soon as possible or even immediately. This for sure will help you build your credit. As you keep doing this, you become stable and then you can make purchases that are larger and also maintain a balance on that Capital One credit card of yours. Make sure that you pay off that required amount right on time. It is also important that you keep in mind that the rate of interest on these credit cards is high. So if you make small payments overall then it will cost you a lot in the long run. So try paying as much as possible when you can and at one go, instead of small amounts every now and then. What is a Credit Card Balance?
