Capital One credit steps question

icyhot · ‎10-13-2015

Trying to help my mom rebuild her credit and she has a Platinum MC and a QS1.They are enrolled in credit steps but she missed a payment. Does that disqualify her completely for the automatic CLI or will she be eligible after making 5 on time payments here on out? She's also charged over her limit, does that disqualify her?

Anonymous · ‎10-13-2015

In less than five months she's maxed out her card and missed a payment? Not sure how it affects credit steps but thats an interesting situation.

icyhot · ‎10-13-2015

@Anonymous wrote:
In less than five months she's maxed out her card and missed a payment? Not sure how it affects credit steps but thats an interesting situation.

My mom isn't the most responisible when it comes to credit. I'm trying to teach her. It doesn't help that she isn't diligent in checking her accounts because she doesn't like online stuff.

Anonymous · ‎10-13-2015

I see. One of my sisters is the same way. Honestly we've concluded that cash or prepaid debit are her friends. If she had cards it would do far more harm than good for her credit. This isnt for everyone. If your mom isnt credit responsible and not keeping up with her accounts I dont see that ending well. Cant get very far rebuilding when making mistakes at the beginning.

icyhot · ‎10-13-2015

@Anonymous wrote:
I see. One of my sisters is the same way. Honestly we've concluded that cash or prepaid debit are her friends. If she had cards it would do far more harm than good for her credit. This isnt for everyone. If your mom isnt credit responsible and not keeping up with her accounts I dont see that ending well. Cant get very far rebuilding when making mistakes at the beginning.

She really wants to buy another house.....we're working on getting her credit habits right as well as collections and late payments from car and student loans. Its just gonna take a while to change her mindset

gibeon · ‎10-13-2015

Her credit steps letter(s) should say whether she would still be in the program or if she's been booted out. It should be in her online documents at Cap One.

If still in, she may get ONE late/missed payment, and then get steps increase somewhere closer to a year. If out, then no more guaranteed increase.

Can she do an automatic payment for the minimum due each month? Or each time she gets a paycheck?

Can she use her cards to just pay two regular bills (one each)? So she always knows how much is due each month?

23 Open Bank Cards / 7 Open Store Cards / TOO many inquires / Mid/High 600's

kdm31091 · ‎10-13-2015

Until she can manage cards properly, a mortgage is simply not going to happen or be possible. Thats just the truth.

She needs to not worry about a CLI. Thats the wrong priority right now. Back to basics. Using the card and paying on time. This will take time to recover from.

Like alluded to above some people are simply better off without credit and it is what it is.

Anonymous · ‎10-13-2015

I'm going to have to go with gibeon--my mother, although young, is slowly becoming very bad with remembering things like due dates. Since I myself am naturally very bad with that, I've set up at least minimum auto-payments for all of the parents' accounts, so that she's welcome to pay when she remembers to (which is about once a month anyway, but always on the wrong day, hahahaha!).

Some people need a 'short leash' for certain things to function well, and it's different for everybody. A friend of mine, for example, only needs to be reminded of an important thing once. I, meanwhile, need constant reminders.

I will also suggest that you have her ability to go over the credit limit removed. Capital One usually has one opted-in automatically, and once you opt-out, you're opted out permanently. It can be convenient for people who can handle it, but I don't think she can at this moment, so I would opt her out of that so she doesn't pay an over-the-limit fee.

Anonymous · ‎10-13-2015

Set a reminder in her phone so she doesn't forget, or set up autopay.

icyhot · ‎10-13-2015

@gibeon wrote:
Her credit steps letter(s) should say whether she would still be in the program or if she's been booted out. It should be in her online documents at Cap One.

If still in, she may get ONE late/missed payment, and then get steps increase somewhere closer to a year. If out, then no more guaranteed increase.

Can she do an automatic payment for the minimum due each month? Or each time she gets a paycheck?

Can she use her cards to just pay two regular bills (one each)? So she always knows how much is due each month?

Not likely, she pays all her bills either in person or over the phone. I can't get her to manage her stuff online for the life of me. So I always end up paying her CC bills out my checking account and she gives me the cash. I just failed to check her accounts to make sure they weren't past due. So I guess it was my fault too???