Re: Capital One Increase[ Edited ]
08-10-2012 10:30 AM - last edited on 08-12-2012 12:08 PM by MarineVietVet
howdy, if I am reading correctly, you have 2 secured cards? One with $600 credit line and the other with $200 credit line. Step 1 - don't close either card. What you want is a "long" credit history. don't ding your credit by applying for another cards either. From my research, max inquiries should be 3 per year. I only use 1 inquiry per year (credit application) and save the other two (inquiries) for emergency needs. This keeps me from disciplined.
suggestion. if both cards are secured. the lower card $200 CLI - I would suggest you only charge up to $38/month (19% UTIL) and then pay it off every month. I would just use it for a tank of gas and then put it back in the safe. the $600 CLI card no more than $114/month and then pay it off (19% UTIL). Basically use it to go grocery shopping then put it back in the safe.
Note: anything over 20% UTIL starts lowering your score. I posted a chart from my research on UTIL % ... basically rule of thumb ... never never never go over 19% UTIL without making a payment on the account -- even if the payment isn't due yet.
If your scores have gone from 554 to 724 you are doing the right thing. Keep doing it and in time all the credit bureaus will catch up. the 8 negatives just take time to heal.
my suggestion is to start saving on just one card. i would start with the $600 CL card and save $100/month to increase the line of credit. I would also suggest sticking $50/month in a savings account for back up funds for the "unexpected" things in life that happen ... flat tire or bad battery, etc.
For myself, I have matching savings plan. whatever I put in the CD I must also put in the savings account. That way I have a rainy day fund. For myself, I have only had my card since Dec 2011. We are August 2012 now and I am at $2700 CLI. To date, I have acquired $450 unsecured credit and the rest is secured. I am getting ready to make the final $300 deposit next month to take it to $3,000; however, if I do this and it posts in September, before the October review date, i will get another $300 unsecured at my 12 month renewal date which is in December. If all goes well, I will have a $3,300 CLI in December.
the summary is charge and pay .... even before due. I charged over $3,000 last month and paid all of it but $621 before the closing date and just paid it off yesterday. they see volume usage which if I am correct, i will get one of the higher credit limits because i have demonstrated that I can handle the "volume" prior to having the credit limit.
** show them you can pay then they will give you credit increases ** // (just my theory)