topic Re: Capital One - Small payments vs large payments in Credit Cards

Capital One - Small payments vs large payments

Anonymous — Mon, 08 May 2017 15:13:46 GMT

I see many people here write that they make several large payments throughought the billing cycle when they want to ask for CLI. I have $300 Cap1 and I am in my 2nd billing cycle. does it make any difference if I make several $50 payments or should I wait for stuff to post and make $200 payment to have a better chance for a CLI?

Re: Capital One - Small payments vs large payments

grillandwinemaster — Mon, 08 May 2017 16:08:50 GMT

At the stage your in, judging from your $300 credit limit, it's not going to make much of a difference.

At your stage, I would use it once for a tank of gas, let it report, and then pay it off completely. Rinse and repeat.

Are you in credit steps? Right now, if you focus on establishing your credit, the credit limit increases will come naturally on there own as your credit grows and matures.

Best credit wishes to you!

Re: Capital One - Small payments vs large payments

MyLoFICO — Mon, 08 May 2017 17:13:21 GMT

QS 1 $4900 CL. Over 5 bill cycles I ran $4700-$4800 transactions (Lump sum, not a bunch of smaller transactions making up the 4700-4800) with corresponding payments within 24-48 hours as soon as the charges hit. Literally $15k in payments as fast as it would give me my available credit back. 3-4 times a month depending on their system speed. CLI time came and I got $250 with a zero balance. May the odds be ever in your favor. I took all the cash back and funded my Chase bank emergency fund checking and savings.

Re: Capital One - Small payments vs large payments

Anonymous — Mon, 08 May 2017 18:51:17 GMT

@ 300 I am guessing it's the secured card... Don't expect much growth out of that. If it's QS then my experience has been yes, heavy spending/PIF jumped it way up quick.

Re: Capital One - Small payments vs large payments

Aduke1122 — Mon, 08 May 2017 18:54:52 GMT

I got a 300 SL on my QS1 last year when I first started and it has only grown to 500 dollars with the Crefit Steps increase, I am denied a CLI everytime I have asked stating too many inquiries. I made big payments , several payments, Pif it doesn't matter , and my scores are up almost 70 pts since getting approved

Re: Capital One - Small payments vs large payments

Anonymous — Mon, 08 May 2017 19:59:16 GMT

Cap One likes to see you make payments that are well over the min amount (ex- min pymt is $25, they'd like you to pay $50) consistently before they will CLI. I've gotten denied CLI from them for the stated reason "not enough payments over the minimum amount" when I was paying $5- $10 over the minimum. 90 days later, after making much larger payments each month, the CLI doubled my limit. GL!

Re: Capital One - Small payments vs large payments

HeavenOhio — Mon, 08 May 2017 20:37:54 GMT

For CLIs, Capital One likes lots of swipes and paid in full. Pay frequently in order to keep your limit freed up so you can keep using the card. At the end of the statement period, you might want to slow down just enough so your reported utilization is at 28.9% or below. But as long as Capital One is getting its money, utilization on a low-limit card probably isn't a big deal.

Re: Capital One - Small payments vs large payments

Kforce — Mon, 08 May 2017 20:42:09 GMT

I have found three points of view on this subject.

1) It is just time, pay in full.

(The don't care and just want to see history of good payments) * My opinion

2) Let 80-90% utilization report then pay.

(They see you need more)

3) Make a lot of small payments.

(They see you need more)

Re: Capital One - Small payments vs large payments

Anonymous — Mon, 08 May 2017 21:52:27 GMT

@Kforce wrote:
I have found three points of view on this subject.

1) It is just time, pay in full.
    (The don't care and just want to see history of good payments) * My opinion

2) Let 80-90% utilization report then pay.
    (They see you need more)

3) Make a lot of small payments.
   (They see you need more)

OP, don't let 80-90% utilization report under any circumstances. If you want to take it to 80-90% and then pay it before your statement cut date that is fine.

Cap1 likes larger payments, not smaller.

It's bad advice suggesting the OP to let a maxed card report.

Re: Capital One - Small payments vs large payments

SouthJamaica — Mon, 08 May 2017 21:51:46 GMT

@Anonymous wrote:
I see many people here write that they make several large payments throughought the billing cycle when they want to ask for CLI. I have $300 Cap1 and I am in my 2nd billing cycle. does it make any difference if I make several $50 payments or should I wait for stuff to post and make $200 payment to have a better chance for a CLI?

No difference. Just pay it down as fast as you can. Small payments are fine.

Re: Capital One - Small payments vs large payments

simplynoir — Mon, 08 May 2017 22:10:27 GMT

@Anonymous wrote:
@Kforce wrote:
I have found three points of view on this subject.

1) It is just time, pay in full.
    (The don't care and just want to see history of good payments) * My opinion

2) Let 80-90% utilization report then pay.
    (They see you need more)

3) Make a lot of small payments.
   (They see you need more)

OP, don't let 80-90% utilization report under any circumstances. If you want to take it to 80-90% and then pay it before your statement cut date that is fine.

Cap1 likes larger payments, not smaller.

It's bad advice suggesting the OP to let a maxed card report.

With my credit reports Cap1 reports new balances after the new statement cuts so it's preferable to get that down to less than %30 at least, more ideally less than 9%, before the due date.

Re: Capital One - Small payments vs large payments

Anonymous — Mon, 08 May 2017 22:49:20 GMT

@simplynoir wrote:
@Anonymous wrote:
@Kforce wrote:
I have found three points of view on this subject.

1) It is just time, pay in full.
    (The don't care and just want to see history of good payments) * My opinion

2) Let 80-90% utilization report then pay.
    (They see you need more)

3) Make a lot of small payments.
   (They see you need more)

OP, don't let 80-90% utilization report under any circumstances. If you want to take it to 80-90% and then pay it before your statement cut date that is fine.

Cap1 likes larger payments, not smaller.

It's bad advice suggesting the OP to let a maxed card report.
+1

With my credit reports Cap1 reports new balances after the new statement cuts so it's preferable to get that down to less than %30 at least, more ideally less than 9%, before the due date.

It's preferable to let less than 30% at least, more ideally less than 9%**BEFORE STATEMENT CUTS**.

Re: Capital One - Small payments vs large payments

Anonymous — Tue, 09 May 2017 00:51:19 GMT

Thanks to everone for responding. I think i got many good points that I can draw conclusions from

1. Swipe as many times as I can

2. Get is to 80-90% utilization (during the billing cycle)

3. Make large payments and repeat number 2 above

4. Pay down to 9% utilization before statement cuts

5. Pay the statement balance in full

Re: Capital One - Small payments vs large payments

SouthJamaica — Tue, 09 May 2017 00:55:57 GMT

@Anonymous wrote:
Thanks to everone for responding. I think i got many good points that I can draw conclusions from

1. Swipe as many times as I can
2. Get is to 80-90% utilization (during the billing cycle)
3. Make large payments and repeat number 2 above
4. Pay down to 9% utilization before statement cuts
5. Pay the statement balance in full

That's fine but it's not necessary to swipe as many times as you can or to get it to 80 or 90% utilization during the billing cycle.

Re: Capital One - Small payments vs large payments

Anonymous — Tue, 09 May 2017 08:31:36 GMT

@Anonymous wrote:
Thanks to everone for responding. I think i got many good points that I can draw conclusions from

1. Swipe as many times as I can
2. Get is to 80-90% utilization (during the billing cycle)
3. Make large payments and repeat number 2 above
4. Pay down to 9% utilization before statement cuts
5. Pay the statement balance in full

Perfect plan!!

Re: Capital One - Small payments vs large payments

CreditInspired — Tue, 09 May 2017 10:42:34 GMT

Abundantcredit,
Just don't purchase things you don't want/need just to get a swipe. IMO, it can get you into a bad habit in the long run. Just think if your limit was $3K, that 80-90% would be a $2.4-2.7K monthly spend. Just swipe what you can afford to pay back to keep your balance <9% and you're on your way to a healthy credit profile. Follow grillandwinemasters advice and you'll be on the right track. Just my 2cents. Good luck.

Re: Capital One - Small payments vs large payments

Anonymous — Tue, 09 May 2017 11:54:17 GMT

@SouthJamaica wrote:
That's fine but it's not necessary to swipe as many times as you can or to get it to 80 or 90% utilization during the billing cycle.

It's not necessary, but if they are all transactions that he was going to make regardless (perhaps on other cards) and he puts them through this card and is able to bring the card to 80%-90% utilization during a cycle it would give the creditor more incentive to CLI. As the person above stated, the OP shouldn't unnecessarily spend just to "get swipes" but if he moves spend from other cards to stimulate more activity on the card in discussion here it can only help.

I do this with a lot of my cards 2-3 cycles before requesting a CLI... move spend from other cards over to the one I'm looking to CLI in order to register more activity/spend on it. I've always had good results doing this.