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I got my first credit card in May of this year. It was the student journey card from capital one. I got approved for $300. My first bill came and it said make the min payment for the first 6 months and you will get an increase. A few weeks after my girlfriend applied and got approved for $500. This was her first card as well. She runs hers near the limit every month and pays a little over the minimum. I always pay in full and I use 20%-40% utilization. Tell me why today she gets an email saying congrats you have an increase! Her card went up to $3,500!!!! She got hers after me and I am better with mine I don't get it!?
@Anonymous wrote:I got my first credit card in May of this year. It was the student journey card from capital one. I got approved for $300. My first bill came and it said make the min payment for the first 6 months and you will get an increase. A few weeks after my girlfriend applied and got approved for $500. This was her first card as well. She runs hers near the limit every month and pays a little over the minimum. I always pay in full and I use 20%-40% utilization. Tell me why today she gets an email saying congrats you have an increase! Her card went up to $3,500!!!! She got hers after me and I am better with mine I don't get it!?
Even if neither one of you have had CCs before, you could very well have different credit profiles. Do either of you have student loans? Auto loans? Or what about baddies, like collections?
Also, when you PIF, do you do this before statement cut or are you letting the 20%-40% UTIL post?
@Anonymous wrote:I got my first credit card in May of this year. It was the student journey card from capital one. I got approved for $300. My first bill came and it said make the min payment for the first 6 months and you will get an increase. A few weeks after my girlfriend applied and got approved for $500. This was her first card as well. She runs hers near the limit every month and pays a little over the minimum. I always pay in full and I use 20%-40% utilization. Tell me why today she gets an email saying congrats you have an increase! Her card went up to $3,500!!!! She got hers after me and I am better with mine I don't get it!?
Maybe she had a negative fall off? What's her scores look like?
I forgot about her student loan. That could be it. I got my card with no credit score. Her credit has been established since getting her loan in 2012 im guessing.
@Anonymous wrote:I forgot about her student loan. That could be it. I got my card with no credit score. Her credit has been established since getting her loan in 2012 im guessing.
Yeah, see that makes more sense now.
I am not sure what you mean. I pay a few days before the monthly bill is due. Should there be a better way of paying in full?
@Anonymous wrote:I am not sure what you mean. I pay a few days before the monthly bill is due. Should there be a better way of paying in full?
Awesome! Keep doing what you're doing.
I pay 1-3 weeks after statement cut
Also to note there are different time periods for Cap1's credit steps program
IIRC some are 5 months others 7 months
To check what yours is .....
Log in go to statements and doc's
Select doc's and you should find a copy of yours there.
@Anonymous wrote:I got my first credit card in May of this year. It was the student journey card from capital one. I got approved for $300. My first bill came and it said make the min payment for the first 6 months and you will get an increase. A few weeks after my girlfriend applied and got approved for $500. This was her first card as well. She runs hers near the limit every month and pays a little over the minimum. I always pay in full and I use 20%-40% utilization. Tell me why today she gets an email saying congrats you have an increase! Her card went up to $3,500!!!! She got hers after me and I am better with mine I don't get it!?
Simple. She is spending more and paying them more in interest. Who do you think is better for their bottom line - you, who never pays interest, or she, who is already paying interest, and assuming her usage goes up in line with her limit, will be paying even more in interest?
Yes, not paying in full does make her a higher-risk customer, but it also makes her a higher-reward customer (for Capital One). Remember, credit card companies for the most part make money by charging swipe fees (to merchants) and interest (to consumers). I'm not surprised they extended more credit to someone who will make them more money.
This is NOT to say, however, that you should start running up credit card debt. A small credit limit is not an excuse for you to be irresponsible. Your building journey will be longer, but more solid than hers. And it will take some years, but you will reap much better rewards eventually.
@Anonymous wrote:I am not sure what you mean. I pay a few days before the monthly bill is due. Should there be a better way of paying in full?
Ideal UTIL for FICO scoring is <10%, but more than zero. Here are some examples on a card that has a $300 CL:
1) I open an account. I spend $100. I pay $100 before the statement closes. My statement shows $0 due by the due date. UTIL = 0%
2) I open an account. I spend $225. I pay $200 before the statement closes. My statement shows $25 due by the due date. UTIL = 8%
For FICO scoring, #2 is preferred. And, so long as you pay the $25 before due date, you avoid interest.
So what I was asking is if you're paying the CC before the statement closes. If so, then it may not look like you're using your credit.