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Valued Contributor
GoodCredBen
Posts: 1,533
Registered: ‎10-25-2011
0

Capital one?

SO - 

 

I was recently approved for a capital one cash back card - no intrest till 11/2012 and i have a few questions about it....

 

I dont want to use the card, but keep it in the sock drawer.... 

 

I get charged for a couple add on features (one is 9.99 the other is 4.99) 

 

One is credit monitoring, the other is credit reports every 3 months or something.... 

 

QUESTION IS:

Do those features that i have to pay for, count as a purchase? (trying to keep my util down but still show a little usage) 

 

I will pay the balance down to 0 at the end of every month, 

 

What is better, having a little % util, or 0% util???? 

 

Trying to rebuild my credit here lol...

 

 

SORRY FOR THE LONG POST. 

----- IF you find my post helpful, Select the star in the KUDOS button! :smileyhappy:
Starting Score: 512 10/2011 Current Score: EQ: 686 | TU: 689 | EX: 661
In My Wallet: SFCU Visa: $10,000 | UECU Visa: $5000 | WellsFargo: $3900 | Cap1 QS: $3500 | Cap1 QS: $3000 | Cap1 AU: $1750
Gardening Since: 6/1/2014
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Frequent Contributor
birjest
Posts: 351
Registered: ‎09-23-2011
0

Re: Capital one?

Listen, I don't think it matter how much you are charging, as long as you can PIF each month.  Whether it is $20 a month or $100 a month (Don't know your cl) it shows that you can maintain control over your credit and thus, be favorable when it is time to increase your cl in the next 6 to 12 months.  JMHO....

11/15/13 EX 685(MY FICO) EQ 657(MY FICO) TU 659 (MY FICO).
Established Contributor
fusioncredit
Posts: 614
Registered: ‎10-23-2011
0

Re: Capital one?


benjamin_vanskike wrote:

SO - 

 

I was recently approved for a capital one cash back card - no intrest till 11/2012 and i have a few questions about it....

 

I dont want to use the card, but keep it in the sock drawer.... 

 

I get charged for a couple add on features (one is 9.99 the other is 4.99) 

 

One is credit monitoring, the other is credit reports every 3 months or something.... 

 

QUESTION IS:

Do those features that i have to pay for, count as a purchase? (trying to keep my util down but still show a little usage) 

 

I will pay the balance down to 0 at the end of every month, 

 

What is better, having a little % util, or 0% util???? 

 

Trying to rebuild my credit here lol...

 

 

SORRY FOR THE LONG POST. 



I don't understand...why would you not take advantage of the 0% APR???


Starting Score: EQ 686 10/18/11, TU 689 10/25/11, EX 685 10/11 (Amex Pull)....these are all FICO scores
Current Score: EQ 702 10/24/11, TU 689, EX 685
Goal Score: 750+

Score Update: EQ: 743 (02/03/12) TU: 741 (Walmart 01/11/12), now 761 as of 01/27/12 (Walmart), EX: 741 (Amex 01/04/12)
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Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010
0

Re: Capital one?

[ Edited ]

benjamin_vanskike wrote:

SO - 

 

I was recently approved for a capital one cash back card - no intrest till 11/2012 and i have a few questions about it....

 

I dont want to use the card, but keep it in the sock drawer.... 

 

I get charged for a couple add on features (one is 9.99 the other is 4.99) 

 

One is credit monitoring, the other is credit reports every 3 months or something.... 

 

QUESTION IS:

Do those features that i have to pay for, count as a purchase? (trying to keep my util down but still show a little usage) 

 

I will pay the balance down to 0 at the end of every month, 

 

What is better, having a little % util, or 0% util???? 

 

Trying to rebuild my credit here lol...

 

 

SORRY FOR THE LONG POST. 


I believe the features will count as purchases.   

 

I am not a fan of sock drawering new cards for credit rebuilding.   I think it is better to use new cards and show a good payment history.  I only worry about optimizing my utilization and score when it is time for next application.    

Valued Contributor
GoodCredBen
Posts: 1,533
Registered: ‎10-25-2011
0

Re: Capital one?

hurm, okay.... 

----- IF you find my post helpful, Select the star in the KUDOS button! :smileyhappy:
Starting Score: 512 10/2011 Current Score: EQ: 686 | TU: 689 | EX: 661
In My Wallet: SFCU Visa: $10,000 | UECU Visa: $5000 | WellsFargo: $3900 | Cap1 QS: $3500 | Cap1 QS: $3000 | Cap1 AU: $1750
Gardening Since: 6/1/2014
May the debt elimination begin! 9680/27150
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
0

Re: Capital one?


benjamin_vanskike wrote:

hurm, okay.... 


 

Do what works best for you.  I agree that I would not get a card with 0% and sockdrawer it.  But if you have concerns that you would run up the balance and not be able to pay it off during the promo period, or even if you could pay it off, that you would spend on things you don't need, or any other reason, do what works for you.  Congrats on the approval.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Valued Contributor
GoodCredBen
Posts: 1,533
Registered: ‎10-25-2011
0

Re: Capital one?

Thanks for the congrats, and its only 300 dollars, and i could EASILY pay it off, i just want it to help me the best way it can.... i am worried about building my credit, not having the funds available as i have plenty in the bank if i wanted to go buy a bunch of stuff i did not need lol.....

 

yes when i was younger i was wreckless, but as you can tell, my views (financial and any otherwise stated) have changed drastically. 

----- IF you find my post helpful, Select the star in the KUDOS button! :smileyhappy:
Starting Score: 512 10/2011 Current Score: EQ: 686 | TU: 689 | EX: 661
In My Wallet: SFCU Visa: $10,000 | UECU Visa: $5000 | WellsFargo: $3900 | Cap1 QS: $3500 | Cap1 QS: $3000 | Cap1 AU: $1750
Gardening Since: 6/1/2014
May the debt elimination begin! 9680/27150
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
0

Re: Capital one?


benjamin_vanskike wrote:

SO - 

 

I was recently approved for a capital one cash back card - no intrest till 11/2012 and i have a few questions about it....

 

I dont want to use the card, but keep it in the sock drawer.... 

 

I get charged for a couple add on features (one is 9.99 the other is 4.99) 

 

One is credit monitoring, the other is credit reports every 3 months or something.... 

 

QUESTION IS:

Do those features that i have to pay for, count as a purchase? (trying to keep my util down but still show a little usage) 

 

I will pay the balance down to 0 at the end of every month, 

 

What is better, having a little % util, or 0% util???? 

 

Trying to rebuild my credit here lol...

 

 

SORRY FOR THE LONG POST. 


 

The general advice is that for best scoring purposes you want one account to report 9% or less of that card's credit limit (not total CL across all cards).  All other accounts should report $0.  Remember, utilization is rounded up, so for a $300 CL, you want a balance of $27 or less. 

 

You are controlling what reports to the CRAs.  You can use your card for more than $27 in the month, but you don't want more than $27 to report.  The number that is reported to the CRAs for most credit cards is the balance that is listed on your statement.  There are some cards that report an end of month balance.  You can search around the threads to figure out how yours reports, but it is likely statement balance.  You can also figure this out if you have a monitoring service by just noting whether the amount listed on your report matches your last month's statement balance.  Cap One reports your statement balance, but not sure if you have any other cards.

 

So, with that in mind, if you charge $100 this month, you would want to make a payment a couple days before your statement generates to bring the balance below $27 so that when your bill is generated the balance reads $27 or less.  After the statement generates, you can immediately pay the remaining balance so that your balance is paid in full and you don't get charged any interest.  You don't have to do it immediately, you just need to do it before your due date.  But a common misconception with the 9% or less rule is that people think they need to carry a blance.  You are always better off if you pay in full (PIF).  This whole thing is for reporting purposes.

 

Another couple points to note.  9% or less on one account is what works best for most people.  Where your exact sweet spot is will depend on your specific credit report.  Additionally, you don't have to worry about this if you mess it up one month.  If you pay it back down to less than 9%, your score will go right back to where it was the previous month all else being equal (which it can never be exactly equal because everything has just aged another month). 

 

Hope that helps.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Valued Contributor
GoodCredBen
Posts: 1,533
Registered: ‎10-25-2011
0

Re: Capital one?

how do i know the reporting time of my Cap1 cc? 

----- IF you find my post helpful, Select the star in the KUDOS button! :smileyhappy:
Starting Score: 512 10/2011 Current Score: EQ: 686 | TU: 689 | EX: 661
In My Wallet: SFCU Visa: $10,000 | UECU Visa: $5000 | WellsFargo: $3900 | Cap1 QS: $3500 | Cap1 QS: $3000 | Cap1 AU: $1750
Gardening Since: 6/1/2014
May the debt elimination begin! 9680/27150
Senior Contributor
john398
Posts: 3,517
Registered: ‎01-19-2009
0

Re: Capital one?


benjamin_vanskike wrote:

how do i know the reporting time of my Cap1 cc? 



its the same as the statement date


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