topic Re: Considering Appling for Capital One Venture in Credit Card Applications

Considering Appling for Capital One Venture

Tim_S — Tue, 23 Feb 2016 14:43:53 GMT

I have been in the process of rebuilding my credit since October, 2015, (short time but I've made tremendous progress). My Fico 3B report shows only one hard pull from TransUnion, (nothing from Equifax or Experian) in October 2015 when I applied and was approved for my 2nd credit card from US Bank, (Cash Rewards). According to Capital One credit card tools website, I am prequalified for the Capital One Venture card, which I would really like to add.

It is my understanding that Capital One does a hard pull with all 3 agencies. My question is, does adding a 3rd credit card raise credit scores more than a hard pull brings it down? I maintain a 1-3% utilization rate and always pay my balance off at the end of the month. My Fico 8 scores are 649 EQ, 682 TU and 687 EX. I don't have any car or mortgage loans right now so I'm just trying to add more revolving credit.

Any advice or thoughts would be amuch appreciated!

Re: Considering Appling for Capital One Venture

Shawndoe79 — Tue, 23 Feb 2016 15:00:28 GMT

@Tim_S wrote:
I have been in the process of rebuilding my credit since October, 2015, (short time but I've made tremendous progress). My Fico 3B report shows only one hard pull from TransUnion, (nothing from Equifax or Experian) in October 2015 when I applied and was approved for my 2nd credit card from US Bank, (Cash Rewards). According to Capital One credit card tools website, I am prequalified for the Capital One Venture card, which I would really like to add.

It is my understanding that Capital One does a hard pull with all 3 agencies. My question is, does adding a 3rd credit card raise credit scores more than a hard pull brings it down? I maintain a 1-3% utilization rate and always pay my balance off at the end of the month. My Fico 8 scores are 649 EQ, 682 TU and 687 EX. I don't have any car or mortgage loans right now so I'm just trying to add more revolving credit.

Any advice or thoughts would be amuch appreciated!

Cap1 prequals are pretty solid, Id say apply if its offering you a "Congratulations" message. The three hard pulls may have very little effect and if so should recover pretty quickly. The new account may affect your AAOA and cause a slight decrease, but will recover as well. However, YMMV. Good luck.

Re: Considering Appling for Capital One Venture

Anonymous — Tue, 23 Feb 2016 19:24:12 GMT

@Shawndoe79 wrote:
@Tim_S wrote:
I have been in the process of rebuilding my credit since October, 2015, (short time but I've made tremendous progress). My Fico 3B report shows only one hard pull from TransUnion, (nothing from Equifax or Experian) in October 2015 when I applied and was approved for my 2nd credit card from US Bank, (Cash Rewards). According to Capital One credit card tools website, I am prequalified for the Capital One Venture card, which I would really like to add.

It is my understanding that Capital One does a hard pull with all 3 agencies. My question is, does adding a 3rd credit card raise credit scores more than a hard pull brings it down? I maintain a 1-3% utilization rate and always pay my balance off at the end of the month. My Fico 8 scores are 649 EQ, 682 TU and 687 EX. I don't have any car or mortgage loans right now so I'm just trying to add more revolving credit.

Any advice or thoughts would be amuch appreciated!
Cap1 prequals are pretty solid, Id say apply if its offering you a "Congratulations" message. The three hard pulls may have very little effect and if so should recover pretty quickly. The new account may affect your AAOA and cause a slight decrease, but will recover as well. However, YMMV. Good luck.

I had a prequal, it even showed my interest rate I would receive, I applied and was denied because of too many credit checks. 3 of the 5 inq at the time were for them.. Capital one doesn't seem to be consistent.

Re: Considering Appling for Capital One Venture

Anonymous — Wed, 24 Feb 2016 05:00:50 GMT

You are good and will get approved most likely. While the new account and the HP will have a minor negative impact at first, your score will most likely benefit greatly especially considering that you will most likely get a huge CL.
Go for it!

Re: Considering Appling for Capital One Venture

Anonymous — Wed, 24 Feb 2016 06:22:15 GMT

@Anonymous wrote:
You are good and will get approved most likely. While the new account and the HP will have a minor negative impact at first, your score will most likely benefit greatly especially considering that you will most likely get a huge CL.
Go for it!

keep in mind that OP stated they're only reporting 1-3% so, even if granted a $1M CL, the new obtained limit should not directly affect score in the short or long term. credit limits don't dictate score; only amount used, pursuit of new credit, AAoA, and types of credit accounts.

edited to fix some grammatical junk

Re: Considering Appling for Capital One Venture

Anonymous — Wed, 24 Feb 2016 07:10:05 GMT

@Tim_S wrote:
I have been in the process of rebuilding my credit since October, 2015, (short time but I've made tremendous progress). My Fico 3B report shows only one hard pull from TransUnion, (nothing from Equifax or Experian) in October 2015 when I applied and was approved for my 2nd credit card from US Bank, (Cash Rewards). According to Capital One credit card tools website, I am prequalified for the Capital One Venture card, which I would really like to add.

It is my understanding that Capital One does a hard pull with all 3 agencies. My question is, does adding a 3rd credit card raise credit scores more than a hard pull brings it down? I maintain a 1-3% utilization rate and always pay my balance off at the end of the month. My Fico 8 scores are 649 EQ, 682 TU and 687 EX. I don't have any car or mortgage loans right now so I'm just trying to add more revolving credit.

Any advice or thoughts would be amuch appreciated!

For the Venure card, Capital One doesn't use Fico 8 scores; they use Fico 5 mortgage enhanced score, Fico 4, and Fico 3. When I applied for both Venture and QS, the prequel site gave me specific interest rates for both. There can be a slight dip in scores due to HP and AAoA if approved, it can rebound when card reports and UTI decreases further; although there is some question about the true range for maximizing score in reference UTI. Under 10% is always good, but too low UTI might suppress score also.

Re: Considering Appling for Capital One Venture

Tim_S — Wed, 24 Feb 2016 13:41:53 GMT

@Anonymous wrote:
@Tim_S wrote:
I have been in the process of rebuilding my credit since October, 2015, (short time but I've made tremendous progress). My Fico 3B report shows only one hard pull from TransUnion, (nothing from Equifax or Experian) in October 2015 when I applied and was approved for my 2nd credit card from US Bank, (Cash Rewards). According to Capital One credit card tools website, I am prequalified for the Capital One Venture card, which I would really like to add.

It is my understanding that Capital One does a hard pull with all 3 agencies. My question is, does adding a 3rd credit card raise credit scores more than a hard pull brings it down? I maintain a 1-3% utilization rate and always pay my balance off at the end of the month. My Fico 8 scores are 649 EQ, 682 TU and 687 EX. I don't have any car or mortgage loans right now so I'm just trying to add more revolving credit.

Any advice or thoughts would be amuch appreciated!
For the Venure card, Capital One doesn't use Fico 8 scores; they use Fico 5 mortgage enhanced score, Fico 4, and Fico 3. When I applied for both Venture and QS, the prequel site gave me specific interest rates for both. There can be a slight dip in scores due to HP and AAoA if approved, it can rebound when card reports and UTI decreases further; although there is some question about the true range for maximizing score in reference UTI. Under 10% is always good, but too low UTI might suppress score also.

If that's indeed the case, then my Fico 5 mortgage is 684, My Fico 4 is 718 and my Fico 3 is 688, (a little better than my Fico 8 scores). I'm not sure why a credit card company would use a mortgage score, but okay!

I've always wondered if there was a magic UTI number, under 10% but over...???

Re: Considering Appling for Capital One Venture

MyLoFICO — Wed, 24 Feb 2016 16:44:17 GMT

@Anonymous wrote:
@Shawndoe79 wrote:
@Tim_S wrote:
I have been in the process of rebuilding my credit since October, 2015, (short time but I've made tremendous progress). My Fico 3B report shows only one hard pull from TransUnion, (nothing from Equifax or Experian) in October 2015 when I applied and was approved for my 2nd credit card from US Bank, (Cash Rewards). According to Capital One credit card tools website, I am prequalified for the Capital One Venture card, which I would really like to add.

It is my understanding that Capital One does a hard pull with all 3 agencies. My question is, does adding a 3rd credit card raise credit scores more than a hard pull brings it down? I maintain a 1-3% utilization rate and always pay my balance off at the end of the month. My Fico 8 scores are 649 EQ, 682 TU and 687 EX. I don't have any car or mortgage loans right now so I'm just trying to add more revolving credit.

Any advice or thoughts would be amuch appreciated!
Cap1 prequals are pretty solid, Id say apply if its offering you a "Congratulations" message. The three hard pulls may have very little effect and if so should recover pretty quickly. The new account may affect your AAOA and cause a slight decrease, but will recover as well. However, YMMV. Good luck.
I had a prequal, it even showed my interest rate I would receive, I applied and was denied because of too many credit checks. 3 of the 5 inq at the time were for them.. Capital one doesn't seem to be consistent.

That is good to know. I would likely have an offer but I have a lot of HP's so I would be in the same boat.

Re: Considering Appling for Capital One Venture

Anonymous — Wed, 24 Feb 2016 17:08:09 GMT

@MyLoFICO wrote:
@Anonymous wrote:
@Shawndoe79 wrote:
@Tim_S wrote:
I have been in the process of rebuilding my credit since October, 2015, (short time but I've made tremendous progress). My Fico 3B report shows only one hard pull from TransUnion, (nothing from Equifax or Experian) in October 2015 when I applied and was approved for my 2nd credit card from US Bank, (Cash Rewards). According to Capital One credit card tools website, I am prequalified for the Capital One Venture card, which I would really like to add.

It is my understanding that Capital One does a hard pull with all 3 agencies. My question is, does adding a 3rd credit card raise credit scores more than a hard pull brings it down? I maintain a 1-3% utilization rate and always pay my balance off at the end of the month. My Fico 8 scores are 649 EQ, 682 TU and 687 EX. I don't have any car or mortgage loans right now so I'm just trying to add more revolving credit.

Any advice or thoughts would be amuch appreciated!
Cap1 prequals are pretty solid, Id say apply if its offering you a "Congratulations" message. The three hard pulls may have very little effect and if so should recover pretty quickly. The new account may affect your AAOA and cause a slight decrease, but will recover as well. However, YMMV. Good luck.
I had a prequal, it even showed my interest rate I would receive, I applied and was denied because of too many credit checks. 3 of the 5 inq at the time were for them.. Capital one doesn't seem to be consistent.
That is good to know. I would likely have an offer but I have a lot of HP's so I would be in the same boat.

Every case is different, so you never know. Good luck in whatever you decide.

Re: Considering Appling for Capital One Venture

Tim_S — Wed, 24 Feb 2016 20:16:25 GMT

Can anyone chime in if adding a 3rd credit card or taking out a car loan would increase scores more? I don't need a new car, but I don't need another credit card either. Just trying to "play the game" by diversifying my credit profile.

Re: Considering Appling for Capital One Venture

MyLoFICO — Wed, 24 Feb 2016 20:18:58 GMT

@Tim_S wrote:
Can anyone chime in if adding a 3rd credit card or taking out a car loan would increase scores more? I don't need a new car, but I don't need another credit card either. Just trying to "play the game" by diversifying my credit profile.

A car might after the initial shock of the inquiries and loan hit your CR but you can’t “buy” a good score.

Re: Considering Appling for Capital One Venture

jbsea — Wed, 24 Feb 2016 20:25:35 GMT

I believe that the general thought is that it is best to have at least 3 credit cards. I love my Venture card so if you do travel it is not a bad card. A new car that you don't need.... well I don't think I would do that just for credit. But yes it would help your "mix" of credit.

Re: Considering Appling for Capital One Venture

Anonymous — Wed, 24 Feb 2016 20:41:48 GMT

realistically if you don't need a car or another card don't get it. not like your missing out on 100 points or anything. budget and financial stability should come first.

Re: Considering Appling for Capital One Venture

Tim_S — Wed, 24 Feb 2016 20:48:33 GMT

Can auto loan scores improve without having a car loan, based on credit card usage?

Re: Considering Appling for Capital One Venture

MyLoFICO — Wed, 24 Feb 2016 20:49:42 GMT

Do you have any current auto loans that are open on your CR?

Re: Considering Appling for Capital One Venture

Tim_S — Wed, 24 Feb 2016 20:51:48 GMT

@MyLoFICO wrote:
Do you have any current auto loans that are open on your CR?

No, I have 2 closed auto loans on my CR, one from 2004, (no negative marks) and one from 2006, (reclaimed repossession with a few late payments).

Re: Considering Appling for Capital One Venture

MyLoFICO — Wed, 24 Feb 2016 20:51:53 GMT

Being mere months out of BK I think the % rate you would get would make it a no-go. I bought my first vehicle last year at 3% and let me tell you, that is so much better than 15-24% for 5-6 yrs. I would work on getting more cards and maybe a small personal loan through your bank or CU.

Re: Considering Appling for Capital One Venture

Tim_S — Wed, 24 Feb 2016 20:53:48 GMT

@MyLoFICO wrote:
Being mere months out of BK I think the % rate you would get would make it a no-go. I bought my first vehicle last year at 3% and let me tell you, that is so much better than 15-24% for 5-6 yrs. I would work on getting more cards and maybe a small personal loan through your bank or CU.

I'm not mere months out of BK. I've never had a BK.

Re: Considering Appling for Capital One Venture

MyLoFICO — Wed, 24 Feb 2016 20:58:08 GMT

@Tim_S wrote:

@MyLoFICO wrote:
Being mere months out of BK I think the % rate you would get would make it a no-go. I bought my first vehicle last year at 3% and let me tell you, that is so much better than 15-24% for 5-6 yrs. I would work on getting more cards and maybe a small personal loan through your bank or CU.
I'm not mere months out of BK. I've never had a BK.

lol. I'm an idiot. I read that on another thread. My apologies.

Re: Considering Appling for Capital One Venture

jbsea — Wed, 24 Feb 2016 21:32:59 GMT

@Tim_S wrote:
@MyLoFICO wrote:
Do you have any current auto loans that are open on your CR?
No, I have 2 closed auto loans on my CR, one from 2004, (no negative marks) and one from 2006, (reclaimed repossession with a few late payments).

I'm surprised that the one from 2004 is still showing, but if it was in good standing that is a good thing. The one from 2006.... When did the repo happen? Adding a installment loan does help but it is only 10% of your score so I would not get a car just for that. If you want a instalment loan and you dont need a new car you can just take out a small secured loan and pay on it for a couple of years. I built my credit up just using credit cards. I was able to get a 2.99% car loan after I got my scrore up. The venture card is a good card with a good starting limit. I would really think about going that way.