CapOne update and questions

[Creditdreamer]

So I called the backdoor number for the senior account managers (thanks LS for the recommendation!). I have a secured card with them and here is the info he gave me. The processes with the secured card have changed in the last 6 months or so and not all the reps are up on the changes basically. CapOne used to graduate secured cards, and now they do not. They also used to give unsecured CLIs on the secured card, and now do not. He said I could request a CLI but it will always be denied. He also said not to use the prequalify link often because it will result in a 1-2 pt decrease which will go away fairly quickly but still... Is that right??? Also, he recommended that I try for an unsecured card with them after a year of perfect payment history. He also recommended (and said that this is true across the board for FICO scoring) that I should carry a 30-50% balance over each month but pay more than the minimum. This goes against almost everything I've heard. He said it is because when you're in the process of rebuilding, the creditors want to see that you're using the card (so don't have 0 balances on any cards). Is this right? It doesn't seem like it based on all I've heard. Also, how can other creditors see that you're carrying a balance from your credit report?

So I have some answers to questions I've had for a long time and also more questions about credit in general. Any insight would be helpful. Thanks!

[Anonymous]

I know you don't take any point decrease from the prequalify, it's a soft pull not a hard. It even says it will not lower your score. As for the rest, hopefully someone else can chime in.

I've always believed that letting a balance of 1-9% of your limit was the best method to raise your score. You don't need to carry a balance to increase your score, they just want your money in interest. The part about the $0 is correct, it'll look like your not using the card. You want a small balance to report on your statement to show that you are using it, but you can pay in full. You don't need to carry the balance like he stated. 

[Anonymous]

Letting 30-50 % report is awfully high. Soft pulls on a pre qualify site don't effect your score, carrying a balance doesn't help your score any. You just want to let a small balance report on your statement (about 5 - 9% util) and then pay in full. No reason to ever pay interest on a credit card unless you absolutely have to.

The CSR either didn't know much about FICO scoring, or was trying to mislead you into carrying a balance every month, or both.

[Creditdreamer]

I thought 30-50 seemed very high too. Even the CapOne website recommends not charging more than 25%.

[SwiftTone]

IMO, you should never incure significanly more debt just to increase your credit.

I would say keeping it below 9% is most benificial, but from 9 to up to 50% is too significant.

[Wolf3]

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@Creditdreamer wrote:
So I called the backdoor number for the senior account managers (thanks LS for the recommendation!). I have a secured card with them and here is the info he gave me. The processes with the secured card have changed in the last 6 months or so and not all the reps are up on the changes basically. CapOne used to graduate secured cards, and now they do not. They also used to give unsecured CLIs on the secured card, and now do not. He said I could request a CLI but it will always be denied. He also said not to use the prequalify link often because it will result in a 1-2 pt decrease which will go away fairly quickly but still... Is that right??? Also, he recommended that I try for an unsecured card with them after a year of perfect payment history. He also recommended (and said that this is true across the board for FICO scoring) that I should carry a 30-50% balance over each month but pay more than the minimum. This goes against almost everything I've heard. He said it is because when you're in the process of rebuilding, the creditors want to see that you're using the card (so don't have 0 balances on any cards). Is this right? It doesn't seem like it based on all I've heard. Also, how can other creditors see that you're carrying a balance from your credit report?

So I have some answers to questions I've had for a long time and also more questions about credit in general. Any insight would be helpful. Thanks!

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I had Cap 1 secured from June 2010 to Sept 2011.   During that time, they did not graduate, but did give usecured CLI and saw many posts that supported that.  

As far as use,  I used the card heavily about 70 to 80% and PIF every month.    I now have a unseucred Capital One No Hassle Cash Back with $3500 CL.   So I think having 50% balance report is just fine as long as you PIF by the due date.        

[LS2982]

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@Creditdreamer wrote:
So I called the backdoor number for the senior account managers (thanks LS for the recommendation!). I have a secured card with them and here is the info he gave me. The processes with the secured card have changed in the last 6 months or so and not all the reps are up on the changes basically. CapOne used to graduate secured cards, and now they do not. They also used to give unsecured CLIs on the secured card, and now do not. He said I could request a CLI but it will always be denied. He also said not to use the prequalify link often because it will result in a 1-2 pt decrease which will go away fairly quickly but still... Is that right??? Also, he recommended that I try for an unsecured card with them after a year of perfect payment history. He also recommended (and said that this is true across the board for FICO scoring) that I should carry a 30-50% balance over each month but pay more than the minimum. This goes against almost everything I've heard. He said it is because when you're in the process of rebuilding, the creditors want to see that you're using the card (so don't have 0 balances on any cards). Is this right? It doesn't seem like it based on all I've heard. Also, how can other creditors see that you're carrying a balance from your credit report?

So I have some answers to questions I've had for a long time and also more questions about credit in general. Any insight would be helpful. Thanks!

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All answers bolded are complete horse****. 

Peggy apparently frequents the Sr. Acct. lines too!!

[injustifiiable]

If this guy isn't totally lying, they should really update their website then...

[aussiesareforever]

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@Creditdreamer wrote:
So I called the backdoor number for the senior account managers (thanks LS for the recommendation!). I have a secured card with them and here is the info he gave me. The processes with the secured card have changed in the last 6 months or so and not all the reps are up on the changes basically. CapOne used to graduate secured cards, and now they do not. They also used to give unsecured CLIs on the secured card, and now do not. He said I could request a CLI but it will always be denied. He also said not to use the prequalify link often because it will result in a 1-2 pt decrease which will go away fairly quickly but still... Is that right??? Also, he recommended that I try for an unsecured card with them after a year of perfect payment history. He also recommended (and said that this is true across the board for FICO scoring) that I should carry a 30-50% balance over each month but pay more than the minimum. This goes against almost everything I've heard. He said it is because when you're in the process of rebuilding, the creditors want to see that you're using the card (so don't have 0 balances on any cards). Is this right? It doesn't seem like it based on all I've heard. Also, how can other creditors see that you're carrying a balance from your credit report?

So I have some answers to questions I've had for a long time and also more questions about credit in general. Any insight would be helpful. Thanks!

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There is a recent post about a secured capital one card getting an unsecured CLI here.
 

He definitely didn't know what he was talking about

[corymcd88]

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@injustifiiable wrote:

If this guy isn't totally lying, they should really update their website then...

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I say the same thing!!!