Ok So I read you were talking about Cap One only giving your High Credit to the CRA. That's true I used Cap One to build my credit and I still keep their MasterCard around to bolster Credit length... I recently called Cap One to discuss another aspect of my account and some how managed to get a customer service rep on that was knowledgeable (I’m still in shock). So I remembered your posts and I asked about it. Cap One Made the decision recently to begin reporting credit limits. They expect the change to be completed by the end of the year... This seams to be good news, as it should help with CU for a large number of Cap One users. Apparently now your high limit on your report is used in place of your credit limit so unless you’ve ever maxxed your card you aren’t getting a true CU # from your capital one acct..... Seems to me maxxing your credit card so you can pay it off to show a true CU # is kind of silly I'm not quite sure why they couldn’t have included one more line of data all along... Anyways this all was news to me so here’s my question I had an Idea where I could max my card (via a cash advance 2 or 3 days prior to the bill closing date0 then dump the money into the bank and pay it back the day after the bill was posted... I know it seems kind of silly but for someone like me I've never even came close to the limit I have on this card (infact 50ish% of the actual credit limit) so as to actually reflect true CU #'s. The only Downside I see to this would be the fee hit... or am I missing something?
That's precisely the kind of workaround I intend on using as soon as I get a CLI to $500. I'll charge $450 or so, wait for it to be reported (accepting that I'll take a temporary 15-point skinning on my FICO scores for high utilization), and then pay it right back down again. It's dumb that we have to do this, but I don't see any other way unless CapitalOne ever decides to get up off its rear end and report credit limits.
- - - - in a credit-scoring postnuclear Stone Age...
Whatever you do, first think please. Read your agreement if you don't remember it.
Most credit cards issuers will charge you a fee for a cash advance (a typical amount may be 3% with no cap), and interests begins accruing immidiately (at a much higher interest rate as well). Cash advances do not qualify for a grace period. Capital one is not the exception to these things. If you max out your card via a cash advance prepare to pay dearly (plus this is very risky behavior, so don't be surprised if you get a rate jack or a credit limit decrease). Finally, quite a few issuers also have a lower limit for cash advances, so be potentially ready for an over the limit fee (although you may still get this if you don't think of all of the above - which if you're actually thinking of doing this, you probably aren't)
The work around is a valid one, but use it appropriately.
"NEVER get a cash advance with credit cards. There are always extra fees, higher interest, other limits, etc., etc., etc. "
Note that there are some cards without extra fees or even a higher interest for cash advances. However, they're very rare. (in my wallet I can think of only one of these, issued by a local credit union). However, overall a good advice. But in either case should always read terms of your cards.
The only time I woule reccommend a cash advance is one the rare occassion you receive a purchase check from Cap one. Not the one that charges the cash advance fee but the ones that act just like a charge against your credit card Those will clearly state the terms and Conditions but they are few and far between. C1 chas increased my limit 500.00 a month for the past three months and I will not max that out nor pay the 3% cash fee just to report a limit. They can report the limit of the card will remain sockdrawered with exsception of 10% of the origanl limit
Is it possible to make a reasonable purchase at a local appliance/audio video store and just not open the product? After the transaction posts, you could return it.
If this is true, be careful who you buy from. They may have certain restrictions as to how the return is dispersed. You may end up paying the principle and interest for store credit you will never use. 30 days is usually the limit for unopened product and after that, it's discretionary. At least that's the way I understand it at the place I used to work at.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.