CapitalOne Mastercard (Canada) offered a credit limit increase, should i?

[Anonymous]

As some of you already know I am trying to clean up my credit situation and planning to make my first auto purchase sometime this year too. I have a Mastercard with CapitalOne $1000 limit and a personal loan with HSBC Finance that has a balance of about $3500, within the next three months I will make huge payments leaving a balance of $0 on the mastercard and $500 on the HSBC loan.

I dont have any other credit cards or loans, besides a student loan that is less than 10K right now, but my goal is to kill off these first 2.

Mastercard offered me a credit limit increase, so I am wondering if I should take the limit increase and still keep utilization at 0% - 10%, by doing this my situation will change as follows:

Current

Mastercard:   $1000 limit - $800 balanace - I will pay 1000 in next 3 months

HSBC Loan   $5000 limit - $3500 balance - I will pay 3000 in next 3 months

In 3 months I could be

Mastercard   $2000+ limti - $250 balance

HSBC Loan  $5000 limit - $500 balance *this is not revolving

now with a current FICO of 670 (Equifax) how might this impact my credit? I will be down to 8 inquiries by the end of this month from 10, do you guys see me making it to the 700 club by summer?

Thnx!

[clocktick]

Hi, I am wondering what the interest rates are for each?  Will Cap One make a hard pull for the increase?  When exactly do you plan on getting a vehicle?

Before I see the interest rates, your plan averages paying those down $1333/mo.  With that, I would just pay the cc in full and keep unloading the rest onto the personal loan...unless the cc rate is 0%.

[Anonymous]

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@clocktick wrote:

Hi, I am wondering what the interest rates are for each?  Will Cap One make a hard pull for the increase?  When exactly do you plan on getting a vehicle?

Before I see the interest rates, your plan averages paying those down $1333/mo.  With that, I would just pay the cc in full and keep unloading the rest onto the personal loan...unless the cc rate is 0%.

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CC rate is at 20% and Personal Loan ia at 29% when i applied for those my credit was still kinda sub-prime 629 FICO at the time. Either way I am going the clear the Loan. I just want to know if adding more to my revolving credit (and maintaining <10% util) is a good or bad? The CC is co-signed with my dad who has some sh!tty credit lol, now if it means hard pulls on my file I will not pursue the limit increase. Capitalone made the offer and said we are pre-approved for 2000