Increasing Credit Limits

flashflamingo · ‎09-24-2012

I'm currently rebuilding my credit through challenging collections/charge-offs on my reports and paying down my credit cards. A month ago, I only had a Capital One Secured Card with a $200 credit limit. As of now, I increased my secured card's limit by $50 and added a $300 Capital One Cash Rewards card. From here, I plan on gardening until some pesky inquiries fall off over the summer.

But my question is how do I increase those limits so that I look worthy of more credit. Apparently my low credit limits signal that I cannot handle higher credit limits? Keep in mind that I'm a graduate student who makes a ~$13k salary from my assistantship. However, I can count my tuition remission as an additional $10k of income now.

AZHeather · ‎09-24-2012

If you can add more money to your secured card, that would be good. As for the Cap 1, keep using your card, pay on time, keep your utilization low, and in 6 months you can contact them for a CLI. Can't guarantee that they will oblige, but they like to see 6-12 months of responsible use before they will even consider it. Also, it sounds like your credit will be healthier in 6-12 months, which will help.

If you are in Cap One's credit step program, then they will review your account automatically after 4 or 6 months and evaluate you for a CLI.

flashflamingo · ‎09-24-2012

What is the Capital One Credit Step Program? I haven't heard of it.

AZHeather · ‎09-24-2012

Credit Steps Program is a program that is offered to applicants that are either rebuilding or are just starting off. They start you with a low limit, monitor your use, and monitor your payment history. Every 4-6 months they do an account review, and supposedly if you are doing well they will increase your limit. Some people have even reported fairly nice increases.

If you are not sure if you are on the program, you can call and ask. You account will be marked in their system if it is.

Shogun · ‎09-24-2012

+1 One method is to treat your secured card like a bill, say pay and extra $25 per pay check. It will add up quickly and it's not only helping your credit, it's like saving up some emergency cash too.

Starting Score: 504
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.

AZHeather · ‎09-25-2012

@Shogun wrote:
+1 One method is to treat your secured card like a bill, say pay and extra $25 per pay check. It will add up quickly and it's not only helping your credit, it's like saving up some emergency cash too.

+1