topic Re: Capital One - Increase in Credit Limit in Credit Cards

Capital One - Increase in Credit Limit

Sillygirl — Tue, 31 Jul 2007 18:17:03 GMT

I received a letter from Capital One yesterday indicating they were increasing my credit limit from $500 to $1500. I was excited until I remembered that they don't report the CL to the CRAs.

So what should I do to make that show on my report? I don't have any other cards or mortgage in my name (that are open) and have two AU accounts that will fall off at some point.

Do I really have to charge up $1500 to get this new limit to show? I really don't want to have to do that, but I will be mortgage shopping in the next few months, so my FICO score is really important and I want it to look as good as possible.

Any suggestions??

Re: Capital One - Increase in Credit Limit

Irvin — Tue, 31 Jul 2007 19:06:45 GMT

that's great news! I have been stuck at $500 for 5 years now.

Re: Capital One - Increase in Credit Limit

DiamondDave — Tue, 31 Jul 2007 20:21:24 GMT

Hi SillyGirl,

Well, you have 3 options.

1. Do nothing, and your highest balance will be used as you "credit Limit", thus possibly hurting your score.

2. Wait it out. Rumor has it that they will be reporting credit limits later this year.

or #3 (This is what I did)

Capital One raised my CL from $400 to $2400 about 1 year ago. I had a ZERO balance on it. I used one of those "Courtesy Checks" (5.99%) and filled it out to myself for $2300, and put this money in an interest bearing saving account at INGDIRECT.com. I left enough room for any interest that could be charged on it. I then waited for the new balance to show up on my credit reports, then removed the cash from INGDIRECT and paid of the Capital One account.

My credit reports are now showing a high balance of $2377, with a balance of $110. That makes the utilization at 4.6%. Now from what I hear, THAT is the "Sweet Spot" to be with your utilization. You MAY have to pay a little interest, but it does wonders for your score.

I hope this helps

Diamond Dave