Question About Cap 1

[fixfico]

I would like to know the best way to handle my Cap 1 card.  I have a credit line of $2500 but on my credit report, it is showing a high balance of around $1340; balance at this time is $1160 -- high util according to what they are reporting (I know).  However, I have read that best way to handle is to run it up to the limit and pay it down before the closing date.  My questions 1) What will be the initial impact on my credit score in the amount of points?  2) How long does it takes for my score to recover?  Does anyone have examples of how this have affected their scores.

Currently my scores are as follows:  EQ -- 588, TU 598, EX 625 (bad I know). 

I need to gain about 100 points before next summer to do a refinance out of an ARM mortgage.  So, I am working hard to accomplish that and the information on this forum has been invaluable.  Thanks to all of you for your input.

[Anonymous]

I don't know of any other way.
In theory your score won't drop much because you are already nearly "maxed" in the eyes of Fico.

I know I could pay my: cell, power, car insurance and have that high limit pushed all the way up.

[fixfico]

Ok...thanks.  I can't afford much of a drop and wasn't sure if it would help.  After your credit report showed a new high balance versus amount owed, did you see much of an increase in your score?  If so, how long did it take?

[Tuscani]

Your score will bounce back within 30 days of the PIF. You have plenty of time.

[Kevin5974]

By something expensive right before your bill cycle like a TV and then return it once a few days have passed your bill cycle. Capital One will post it as you high credit/balance and then post the refund and your balance is back to normal. Good luck :-)

[fixfico]

That is actually a very good idea....I may give it a try.  Thanks to all of you for your suggestions.

[Anonymous]

A perhaps easier and safer approach might be to use a Cap 1 convenience check. Cash it, put in a savings account, then repay it.

With my Cap 1, I did a BT to max out the card to $300. Got the statement, $15 minimum, I paid $25 to be safe, when the statement cycle closed they tacked on $3.82 in interest. Reported a high balance of $300, current balance of $278.

When Cap 1 bumps me up to a $500 CL in 3 months, I'm going to just cash a convenience check, then repay it a few days later. To game Cap 1, methinks ya don't need to have a near maxed out balance reported in order to get your maxed out high balance reported.