@jmbfl wrote:
When I simulated that change my UTIL was starting at 8%. There is nothing to be gained there for me. When I go through any simulator activity there is nothing I can do to improve my scores excluding continuing a perfect payment record over time and letting my accounts age.
Ah, yes, welcome to the Great FICO Plateau. Bring your tent and sleeping bag and prepare to get comfortable. You might be here a while.
Do you play bridge, btw? I need to find some players up here to help me remember the game, and my tent is big enough for a bridge foursome. doo be doo be doo
(added the word "bridge" in front of "foursome", as it looked rather odd when first read)
@Anonymous wrote:Long time reader, first time poster to this website. I have a question:I was accepted for three cards this week:Discover More for $8600 with a 0% APR until Sept. of 09 and then an 8.9% APRCITI CashReturns for $5000 with a 9.9% APRCapital One Standard Platinum for $1000 with a 19.8% APRI also have a Macys card that has a $600 limit (my only card that I've barely used over the last 10 years).I have good scores, but never had use for credit until I wanted to buy my own place and increase my purchasing power. I thought I would apply for a few cards that I could use to demonstrate responsible use of credit over the next year as I prepared for my major purchase (use it for things like grocery and on business trips instead of my business card, etc.). I applied to Capital One as a safety in case I was rejected by the other two companies.With all I've heard about Capital One, I'm tempted to say thanks, but no thanks to Capital One. Is this advisable? If so, is it better to just tell them even before I activate the card? How would this affect my scores? If I do accept it, I probably won't even carry it around because it's such a low limit and I wouldn't want a high utilization and the APR is horrible.Thanks!
Congrats on the nice opening CLs for Discover More and Citi, Destry.
I've had Cap1 for a long time, and I'd close them if they weren't one of my oldest CLs, because, in my opinion, they treat their "prime" customers vs "regular/rebuilder/sub-prime" customers very different when it comes to growing with them. Once you're in with a lower level card...they sorta treat you lower level from there on out. They're not suddenly going to give you a Rewards card with a $10k CL for being a good, paying customer like, say, BoA might do. So here's the deal:
That card is going to drag you down in the long run. It gains you nothing by showing on your report, and has the potential to harm future CLIs on existing, and intial CLs on any new cards you might open. Think of it as a CCC looks at your CR when you app again in the future: "Oh, we should at least match Citi's CL so he'll use our card. Wait...he's got a Crap1 with a $1k CL. Oh well, let's just give him $3k opening CL and it'll be fine, since it's somewhere in the middle of his high and low CLs."
Second point is, there's nothing you can accomplish with that Cap1 card via upgrades or CLIs that will bring it up to the other card's levels anytime soon. Even if you do, you'll have to take 3 more hard inquiries...the same as re-app'ing for a new Cap 1 card. So, why keep it? Honestly, it's of no benefit. If you want a Cap 1 rewards card later on, wait a year with these, then reapply for one of them, that has a $20k or so credit limit ceiling. You'll be better off. Just my two cents.
I had no doubt on what you meant. 
@haulingthescoreup wrote:
@haulingthescoreup wrote:
Ah, yes, welcome to the Great FICO Plateau. Bring your tent and sleeping bag and prepare to get comfortable. You might be here a while.
@jmbfl wrote:
When I simulated that change my UTIL was starting at 8%. There is nothing to be gained there for me. When I go through any simulator activity there is nothing I can do to improve my scores excluding continuing a perfect payment record over time and letting my accounts age.
Do you play bridge, btw? I need to find some players up here to help me remember the game, and my tent is big enough for a bridge foursome. doo be doo be doo
(added the word "bridge" in front of "foursome", as it looked rather odd when first read
@Anonymous wrote:Thanks for the advice, Tang. I didn't think about how future credit offers may be affected by a card with a significantly lower limit. I may ask Capital One to increase the card to its full limit of $3,000 once I have it and see what they say.
No worries, Destry. You've got two very nice prime cards there, and a little piggy in the mix dirtying up your CR. I'd ship the little piggy to market now, 'cause he's never gonna grow very big like the rest.
But regardless, congrats on the two prime cards!
@TangMeister wrote:
@Anonymous wrote:Long time reader, first time poster to this website. I have a question:I was accepted for three cards this week:Discover More for $8600 with a 0% APR until Sept. of 09 and then an 8.9% APRCITI CashReturns for $5000 with a 9.9% APRCapital One Standard Platinum for $1000 with a 19.8% APRI also have a Macys card that has a $600 limit (my only card that I've barely used over the last 10 years).I have good scores, but never had use for credit until I wanted to buy my own place and increase my purchasing power. I thought I would apply for a few cards that I could use to demonstrate responsible use of credit over the next year as I prepared for my major purchase (use it for things like grocery and on business trips instead of my business card, etc.). I applied to Capital One as a safety in case I was rejected by the other two companies.With all I've heard about Capital One, I'm tempted to say thanks, but no thanks to Capital One. Is this advisable? If so, is it better to just tell them even before I activate the card? How would this affect my scores? If I do accept it, I probably won't even carry it around because it's such a low limit and I wouldn't want a high utilization and the APR is horrible.Thanks!
Congrats on the nice opening CLs for Discover More and Citi, Destry.
I've had Cap1 for a long time, and I'd close them if they weren't one of my oldest CLs, because, in my opinion, they treat their "prime" customers vs "regular/rebuilder/sub-prime" customers very different when it comes to growing with them. Once you're in with a lower level card...they sorta treat you lower level from there on out. They're not suddenly going to give you a Rewards card with a $10k CL for being a good, paying customer like, say, BoA might do. So here's the deal:
That card is going to drag you down in the long run. It gains you nothing by showing on your report, and has the potential to harm future CLIs on existing, and intial CLs on any new cards you might open. Think of it as a CCC looks at your CR when you app again in the future: "Oh, we should at least match Citi's CL so he'll use our card. Wait...he's got a Crap1 with a $1k CL. Oh well, let's just give him $3k opening CL and it'll be fine, since it's somewhere in the middle of his high and low CLs."
Second point is, there's nothing you can accomplish with that Cap1 card via upgrades or CLIs that will bring it up to the other card's levels anytime soon. Even if you do, you'll have to take 3 more hard inquiries...the same as re-app'ing for a new Cap 1 card. So, why keep it? Honestly, it's of no benefit. If you want a Cap 1 rewards card later on, wait a year with these, then reapply for one of them, that has a $20k or so credit limit ceiling. You'll be better off. Just my two cents.
This advice is rubbish!
Here's why:
1) You already ate three hard inquiries, and
2) You going to be stuck with a new account ding whether you activate the card or not
I have a Direct Merchants MC (HSBC) showing on my CBR's which is a kinda funky card. The CL on that card seems to be capped at $2K. Every issuer out there knows that HSBC issues a bunch of wierd cards with CL caps and fees and all other kinda unsavory stuff. Now the question is, did that stop me from getting better cards with great CL's? Answer: NO! In recent months I have been issued PenFed ($10K) and Discover More ($8.1K).
If you had it to do over again you might not app for the Cap 1 card. But that's not the case. The damage is already done. Take the card, use it once in a while, and get the CLI's when you can. Every card that you have helps you. Let this one help your UTIL.
Think of it this way: If you had app'ed for and been approved for a Macys card and were given a $1K CL and were told it could go to $3K you would be thrilled. Be happy!