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Managing High Expenses with a Low CL

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calebwshn
Valued Member

Managing High Expenses with a Low CL

Hi everyone. Here's a question from a Neophyte in the CC game: 

 

I was just approved for my first cc this week; Capital One Newcomers (rewards: 2% travel/1% everything else) at a $300 CL. I figure for the first 6-9 months, Ill memorize the number, cut up the card to prevent swiping (I can be very persuasive to myself) and use that account only for paying my utility bills that I would normally pay with cash anyway. This issue is however, those bills, (phone, Tv, Internet, insurance, etc.) add up to be much more than $300. For that to work I would have to maxout twice, then the 3rd time would satisfy my expenses for that month and then I could pay down so that my utilization would be under 9% for the statement cut then PIF the day after. But I don't want to seem like I'm maxing my card to Cap1 as a first time card holder.  I was thinking about asking them for a CLI right off bat, but didn't think that would be likely. How do you guys think I could effectively manage this situation? 

Current Personal Cards:
Amex Gold - NPSL, Chase Freedom - 3300, Amex Optima - 1100

Current Business Cards
Amex Amazon Business Prime - 3000, Chase Ink Unlimited - 6000

FICO8:
Ex - 702, TU - 727, EQ - 705

INQ:
EX - 7, TU - 3, EQ - 1
Message 1 of 8
7 REPLIES 7
09Lexie
Moderator Emerita

Re: Managing High Expenses with a Low CL

Welcome to the forum!

Instead of charging everything ( if you choose not to make multiple payments) why not charge 1-2 of your bills?
Message 2 of 8
Pworld
Regular Contributor

Re: Managing High Expenses with a Low CL

I did this with my intial $500 chase Freedom CL. 

 

1) Try to get ur bills spread out. Like 2 or 3 in the first half of the month, 2 or 3 second half. This gives you some payment clearing time. 

 

2) Get to know your CC payment rules. For instance discover at first delayed a payment if it was made within 2 days after a previous payment. That was a pain in the buns. After about a month, they let up on that, and i can pay whenever a payment clears. Knowing that can help you figure out the timing of the payments. 

 

3) this method of heavy use and a lot of payments got me a $500 Auto CLI within 4 months of having a card, then another $500 Auto CLI last week at having the card 8 months total (thats 500 to 1500 CL in 8 months. all Auto increases, with a company known to be stingy with increases). So it could benefit you if played well. 

 

 


Current EQ:809 EX: 808 TU:809


Amex Platinum/ NPSL | Amex Zync/NPSL | Amex Green/NPSL | AMEX BCP/18.1k | Chase Freedom/2.2K | Discover IT/10.9K | Amex HHonors Surpass/9K | Chase Hyatt/5k | Sapphire Preferred/13K | Ink Business Preferred/13K
Message 3 of 8
calebwshn
Valued Member

Re: Managing High Expenses with a Low CL

Hi 09Lexie, 

 

I wanted to first see how severe maxing out would be even though I would be paying it off the next day or two. I figure I could also use that as a basis to request an early CLI after 2 months. And second, to start building that 1% cash back reward. 

Current Personal Cards:
Amex Gold - NPSL, Chase Freedom - 3300, Amex Optima - 1100

Current Business Cards
Amex Amazon Business Prime - 3000, Chase Ink Unlimited - 6000

FICO8:
Ex - 702, TU - 727, EQ - 705

INQ:
EX - 7, TU - 3, EQ - 1
Message 4 of 8
Stralem
Established Contributor

Re: Managing High Expenses with a Low CL

 

Like you, my various bills can max out my lower limit cards in one fell swoop. So what I usually do is put one or two bill on them up to an arbitrary limit -- say 70% of the limit -- and pay off the charges in multiple payments.

 

Or, if you're not up to dealing with all that, use the card for snacks and other small purchases and pay off the charges in full. But be careful! Lots of small purchases can turn into a huge bill before you know it. I had to learn this lesson the hard way.

 

...Hell, I'm still learning it... (Hello 50% utilization by way of daily stops at Starbucks!)

I Have Way Too Many of These.

American Express - No CLI or Appreciation Gift in 7 Years

Citibank - Handing Out Credit Limits Like Candy

Chase - Surprisingly, Still Tolerating My Credit-Chasing Ways

Bank of America - My Newest Bae.

Everyone Else.
Message 5 of 8
calebwshn
Valued Member

Re: Managing High Expenses with a Low CL

My bills usually cut within the first week of the month and as long as I pay them before the next cycle, then I dont have any problems. What I didnt know was that there are "rules to paying"  

Current Personal Cards:
Amex Gold - NPSL, Chase Freedom - 3300, Amex Optima - 1100

Current Business Cards
Amex Amazon Business Prime - 3000, Chase Ink Unlimited - 6000

FICO8:
Ex - 702, TU - 727, EQ - 705

INQ:
EX - 7, TU - 3, EQ - 1
Message 6 of 8
calebwshn
Valued Member

Re: Managing High Expenses with a Low CL


@Stralem wrote:

 

Like you, my various bills can max out my lower limit cards in one fell swoop. So what I usually do is put one or two bill on them up to an arbitrary limit -- say 70% of the limit -- and pay off the charges in multiple payments.

 

Or, if you're not up to dealing with all that, use the card for snacks and other small purchases and pay off the charges in full. But be careful! Lots of small purchases can turn into a huge bill before you know it. I had to learn this lesson the hard way.

 

...Hell, I'm still learning it... (Hello 50% utilization by way of daily stops at Starbucks!)


See that right there is why im cutting that card up. The last thing I need is a credit account for Starbucks. Id Cap1 would blacklist me asap Lol. 

Current Personal Cards:
Amex Gold - NPSL, Chase Freedom - 3300, Amex Optima - 1100

Current Business Cards
Amex Amazon Business Prime - 3000, Chase Ink Unlimited - 6000

FICO8:
Ex - 702, TU - 727, EQ - 705

INQ:
EX - 7, TU - 3, EQ - 1
Message 7 of 8
09Lexie
Moderator Emerita

Re: Managing High Expenses with a Low CL

If you aren't planning on apping and you can pay you bill w/o incurring interest- most lenders like heavy usage. I suspect Cap One would not be sensitive based on the CL they routinely hand out. Just make sure you PIF or you'll be caught with possible overage fees and interest.
Message 8 of 8
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