Artificially Inflated CLs

[Creditdreamer]

I am rebuilding and have two secured ccs (CapOne and Open Sky). If I were to raise them to around 3k each (or higher depending on what's available), would it make a difference in the short term? Meaning if I did that, when I then went to apply for a "real" cc, would I be more likely to get a high limit, which would cut out some of the exhaustion of having low CLs for a while on my future better cards? For example, say I leave my limits where they are: 200 and 200. When I then apply for a normal cc, I'd assume I'd get around 200 or 300 limit. If I were to artificially inflate my CLs to that 3k, would that then give me a CL on the future card of around 2 or 3k? Anyone have experience with doing either one?

Thanks!

[Anonymous]

Better make one 5K and the other 1k. You could have a short cut to visa signature or MC world as lenders usually determine CL size base on your existing TLs. And many times, they will match with the highest one in credit report.

[namvet]

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@Creditdreamer wrote:
I am rebuilding and have two secured ccs (CapOne and Open Sky). If I were to raise them to around 3k each (or higher depending on what's available), would it make a difference in the short term? Meaning if I did that, when I then went to apply for a "real" cc, would I be more likely to get a high limit, which would cut out some of the exhaustion of having low CLs for a while on my future better cards? For example, say I leave my limits where they are: 200 and 200. When I then apply for a normal cc, I'd assume I'd get around 200 or 300 limit. If I were to artificially inflate my CLs to that 3k, would that then give me a CL on the future card of around 2 or 3k? Anyone have experience with doing either one?

Thanks!

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    Yes!   But i would get some payment history before apping for your next card.  You know the drill.....pay on time and charge less than 30% of your credit line.

[Creditdreamer]

That's a good way to look at it. I just checked the CapOne and Open Sky websites and the max for each is 3k. Should I just do 3 and 3? Or should I try opening up another secured and going higher? Or should I do the 3 and 3 and then apply for an unsecured CapOne at the 6 month mark?

[Creditdreamer]

@ namvet: Okay. Thanks for the advice. I have had my CapOne since October and the Open Sky is fairly new (within last month). Should I wait for 6 months history on both (meaning I'd have 10 months on CapOne)?

Edit: Basically I'm okay with waiting and having the 6k locked down, but I want it to do the most possible good for the time it's locked down. Like if it's going to make an exponential difference between 6 and 12 months, I'll just wait the 12 months.

[MarineVietVet]

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@namvet wrote:

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    Yes!   But i would get some payment history before apping for your next card.  You know the drill.....pay on time and charge less than 30% of your credit line.

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You can charge as much as you want. It's the reported balance on your statement that is the important number.

[Creditdreamer]

@ MarineVietVet: Thanks for the clarification. Yes I've been doing that. Because my limit is currently only 200, I end up making 4-5 payments a month to keep it under 30% when the statement closes but that way I don't have to worry about NSF from using my debit card.

[Anonymous]

I used 3 secured cards to rebuild.  

PSB ($1000)

HSBC ($1100)

Capital One ($2200 + $300 Usecured at 6 months ).

I used the cards a lot,  to the limit at times, and kept them about 1.5 years, then applied for unsecured before closing the secured.

Capital One approved me for a $3000 cash rewards card, which just went to $3500 (at 6 months on its own).   The CSR said they were impressed with the deposit and that helped get the $3000.    

HSBC gave me a Household (2% rewards, No AF) with $500 limit, which as not gone up (7 months).

I think it helped me get Target ($1000 CL) which is the first unsecured card I got when I had the first 2 cards only.  Other store limts were $500, $800, $2000, $5400.  

So in my case, it definitely helped for Captial One and other store cards. but not HSBC.  

My deposits limits were not artificial, so if you get a big limit but don't use it, that may not help as much.

I am a believer, and if it doesn't work, no harm done and there is no cost to a bigger deposit, if you have the savings.  .

[improvingmycredit]

Hey! 

I think really you would just need at least one at 3K since that's the max for the your secured card or open another secured card at a CU and start the balance at 6K.  Most lenders try to match your highest credit limits.  YMMV though.  This is just my experience so far with my personal cards.

[namvet]

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@rCreditdreamer wrote:
@ namvet: Okay. Thanks for the advice. I have had my CapOne since October and the Open Sky is fairly new (within last month). Should I wait for 6 months history on both (meaning I'd have 10 months on CapOne)?

Edit: Basically I'm okay with waiting and having the 6k locked down, but I want it to do the most possible good for the time it's locked down. Like if it's going to make an exponential difference between 6 and 12 months, I'll just wait the 12 months.         

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 Ok lets think about this and come up with a game plan.  Let's not get anymore inq than necessary.  You got 3 with the Cap One and none with Open Sky.  So you have 4 months history with Cap and none with Open Sky.  Getting a new secured card will just add another inq so lets just add to what you already have.  Now you will have to be patient and get some history at the higher limits.  So my suggestion is to show some good, no great payment history the rest of this year.  Let's do this right from the get go.  2013 will be your year.  No more secured credit cards for you.  Do your research and apply for unsecured for a card that fits your credit profile at the time.  Good luck!