Timing payments, statement cuts, and CLI requests for Capital One

[someg33k]

Obviously everyones experiences will vary but I did not get a major CLI with cap1 until I let my balance post at over 50% util. I had previously been PIF which got me nowhere. Soon as that posted I clicked CLI button and went from $500 to 4k!   Now trying to figure out what to do with my Quicksilver which comes up for CLI in December. PIF or let util post at over 50% again...   hmm where is my Magic Eight Ball when I need it!

[Chris679]

Many times they are looking at SP that are already in the system so the last payment or two will have no impact at all. OP is worrying about a couple days difference when the reality is that it will take months to see the changes they want to see.

[masscredit]

What I would do, and have done is take the money that would be used for monthly expenses (food, gas, utilities ect...) and use that to pay down one or both of your cards. Let those statements close with the smallest balance possible then use the cards for your expenses. The cards will report the lower balances/lower utilization, that will look better and scores should go up. Plus Cap 1 will see large payments and use so I think you'll be more likely to see CLIs. If you do this and don't get an increase from the Luv Button, then call the EO office and talk to them. This has worked for me when I was trying to get my utilization down. 

If you do the above and will be appling for new credit, remember to wait a week for the lower balances to post to your reports. Usually takes a few days to a week.

[Chris679]

You should not be using a card that was not PIF for everyday expenses because you have no grace period. Now you are paying interest right away on gas, groceries, etc. Normally I advise using a credit card for all purchases but in this case you are better off paying with cash.

[masscredit]

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@Chris679 wrote:
You should not be using a card that was not PIF for everyday expenses because you have no grace period. Now you are paying interest right away on gas, groceries, etc. Normally I advise using a credit card for all purchases but in this case you are better off paying with cash.

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If this reply is to my post, I usually PIF. Actually, definately do now. But when I was working on paying down my cards, I'd take the cash, pay on my card(s) then use the cards from expenses. That would only total to the amount that I paid (usually about $850) then repeat the next month. Besides allowing the card(s) to report a smaller balance which lowered my utilization and improved my scores, that also allowed me to pay less interest because the balance was lower. It actually worked out pretty good.

But I do agree that credit cards shouldn't be used for everyday expenses if they aren't going to be PIF. Carrying a balance for everyday expenses will just get a person deeping into a hole. 

[Chris679]

But that's the thing, you aren't saving money on interest. With no grace period you start paying interest right away on all new purchases. In this case you should stop making new purchases on the card and use any extra money to pay down the balance. If anything you can use another card and take advantage of the grace period there to squeeze a little a little more cash but don't use a card for new purchases if you did not PIF on the last two statements.

[Anonymous]

I know this is older thread just wanted to share my experience, which is that when Cap1 does a soft pull, it's 2-3 months behind.

Meaning if I hit the luv button on November 1st and get denied, the letter they send will show my score from September 1st, which is not reflective of my current situation.

So regardless of util, OP's plan probably won't work because the score Cap1 will see will likely be 2-3 months old.

[Ysettle4]

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@Anonymous wrote:
I know this is older thread just wanted to share my experience, which is that when Cap1 does a soft pull, it's 2-3 months behind.

Meaning if I hit the luv button on November 1st and get denied, the letter they send will show my score from September 1st, which is not reflective of my current situation.

So regardless of util, OP's plan probably won't work because the score Cap1 will see will likely be 2-3 months old.

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No necessarily the case. When CApital One does a soft pull it's usually from EQ and if you have EQ's monitoring service, you can easily detect when they last pulled you - which is more often than what you are stated. In my case, I can tell you that they SP'd me recently and it would look like this:

Company Information	Date of Inquiry
AR-CAPITAL ONE	10/17/14
AR-CAPITAL ONE NA	04/22/14
AR-CAPITAL ONE BANK USA NA	10/27/14

[MaisCher]

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@Chris679 wrote:
Many times they are looking atSP that are already in the system so the last payment or two will have no impact at all. OP is worrying about a couple days difference when the reality is that it will take months to see the changes they want to see.

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This is true. I just requested a CLI and in my decline letter they list my EQ score dated 7/2014 and it's 50 pts lower than where I am now. I spent a long time on the phone with them trying to get an explanation and no one offered much help. The also claimed I had made a late payment within the last 9 months which wasn't true. Coincidentally, my Cap One account that did have a 30 day late last Sept got an auto CLI in May. I'm done with them...

[vanillabean]

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@sarux3 wrote:

If I had the means to bring the util down below 10%, I wouldn't need the CLIs in the first place.

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Quite the dilemma, isn’t it! But while it’s generally appreciated that life is paved with good intentions, some down-to-earth, bean-counting, party-pooping credit card lenders do not encourage the temptation of potentially letting a lendee’s debt spiral out of control. Instead, high limits may be used to flex your affluent muscles within a billing cycle and your means.