topic Re: Cap One Sec CLI Questions and Advisement in Credit Cards

Cap One Sec CLI Questions and Advisement

Anonymous — Mon, 10 Aug 2020 17:52:01 GMT

Hey All!

Just hoping for advisement regarding Capital One Secured CC product. I chose this option to begin rebuilding my personal credit. I received the advertised CLI after "6 early/on time payments".

My questions are:

1)Do you only get one CLI after 6 months of on time payments, and that's it? Or are their reviews every 6 months? Am just curious as I'm coming up on 1 year.

2) The Cap One Secured is the only CC/Credit/Revolving account I have. Would a second card contribute overall in helping to boost my score, my line of thinking being "another account that will show on time payments" - I was thinking of applying for discover IT secured , since they at least advertise they review every 8 months to graduate to unsecured.

Overall, an unsecured product is the next step in my personal goals, but I don't want to apply and eat hard inquires for nothing, this is where I'm at:

MyFico 8 :677/633/603

FicoBankcard 8: 692/644/610

Any input is MUCH appreciated.

Thanks.

Re: Cap One Sec CLI Questions and Advisement

BmoreBull — Mon, 10 Aug 2020 17:59:45 GMT

I believe, not 100% sure, that the credit steps increase on the secured cap one is a one time thing. I plan on closing mine after the 1 year mark. It should have served its purpose by then. I would do the Discover pre qual if I were you. With your ex score they may offer you a regular Discover It. If not the secured is still a great way to go. With good payment history and no new negatives, it could unsecure in as little as 8 months. Also you get some rewards. Nothing major, but they do match cash back the first year. Good luck.

Re: Cap One Sec CLI Questions and Advisement

Brian_Earl_Spilner — Mon, 10 Aug 2020 18:09:23 GMT

Yes, the secured only gets 1 increase ever. You will most definitely be helped by more cards.

Re: Cap One Sec CLI Questions and Advisement

M_Smart007 — Mon, 10 Aug 2020 18:15:43 GMT

Cap "ONE" = One Increase .. should be named "credit step" as in single, not plural.

Re: Cap One Sec CLI Questions and Advisement

HeavenOhio — Mon, 10 Aug 2020 20:08:20 GMT

Welcome, @Anonymous.

Let your score take care of itself. You want another card because the secured card isn't adequate for your credit needs. Discover is a good idea; check their pre-qualification tool, and report back here with the product name and interest rate. (You don't ever want to pay interest, but the rate given during pre-qual helps you determine what your approval chances are.)

Another good option would be Capital One's unsecured Platinum card. Your secured card with them has a solid history, and they'll place a lot of weight on that.

By the way, don't rush your rebuild. More isn't better. The goal is a quality collection of cards. Moving methodically and strategically is the route to achieving that.

Re: Cap One Sec CLI Questions and Advisement

Irv02 — Tue, 11 Aug 2020 04:05:25 GMT

Congratulations on your rebuild!! Unfortunately everything the Community has said is true. I've had the secure Capital One card for 17 months and only received the one increase. I moved onto Discover It (secured), and the card has now since graduated and I received a credit limit increase on my 14th month of having the card without having to ask for it. Be patient. Be choosey. You will get the cards you want!!

Re: Cap One Sec CLI Questions and Advisement

Anonymous — Tue, 11 Aug 2020 04:57:16 GMT

Thank You for the fantastic info!

After entering my information, I was prequalified for the Discover IT Secured Card with a 22.99% rate, minimum $200 Deposit.

My current Cap One Secured is 24.74%.

Regarding interest, haven't paid any yet!

I made mistakes when I was in my teens, went without a CC until now (in mid 30s) - I've learned the lesson! I pay in full as soon as the charge posts!

I think I'd like to apply for the Discover IT secured product. Is it best just to deposit the minimums with secured cards? Or should I put as much as I can afford? (thinking maybe it would help my credit profile with the increase of available credit?)

The cash is basically in the wind though until I decide to close the respective account. I don't want to close anything that will negatively impact "account age" so early in my rebuild.

@HeavenOhio What is your advisement regarding the results? I am interested in the Discover IT Secured - but will a second CC help my credit (another account showing on time payments)?

Re: Cap One Sec CLI Questions and Advisement

OmarGB9 — Tue, 11 Aug 2020 07:01:54 GMT

@Anonymous wrote:
Thank You for the fantastic info!

After entering my information, I was prequalified for the Discover IT Secured Card with a 22.99% rate, minimum $200 Deposit.
My current Cap One Secured is 24.74%.

Regarding interest, haven't paid any yet!
I made mistakes when I was in my teens, went without a CC until now (in mid 30s) - I've learned the lesson! I pay in full as soon as the charge posts!

I think I'd like to apply for the Discover IT secured product. Is it best just to deposit the minimums with secured cards? Or should I put as much as I can afford? (thinking maybe it would help my credit profile with the increase of available credit?)

The cash is basically in the wind though until I decide to close the respective account. I don't want to close anything that will negatively impact "account age" so early in my rebuild.

@HeavenOhio What is your advisement regarding the results? I am interested in the Discover IT Secured - but will a second CC help my credit (another account showing on time payments)?

Closing the Cap One secured will not affect your age of accounts, as closed accounts still factor into your account age and will continue to report for up to 10 years.

And your Disco pre-qualification seems borderline. I would maybe wait until you hit your year mark with the Capital One card and then check the prequalify again.

Re: Cap One Sec CLI Questions and Advisement

HeavenOhio — Tue, 11 Aug 2020 15:17:26 GMT

@OmarGB9, the thing we're looking for on the Discover pre-qual tool is a "solid" interest rate rather than a range, e.g. 12% or 22% vs. something like 16–24%. It would stand to reason that a secured card would come with a relatively high interest rate.

@Anonymous, are there any negatives still on your report? The reason I ask is that your scores seem a little low for a report with a credit card having perfect payment history. Having this information would help us to help you strategize.

I'm a fan of building at the rate of one card every six months, with some flexibility as long as you don't acquire more than five cards in a 25-month span. That should keep you from being denied based on too may recent accounts or inquiries. Because you've waited longer than six months, you should be positioned for up to two cards in the relatively near future. You simply need to determine what fits your needs at this time and know which banks are sensitive to which things.

Another pre-qual tool I'd check is Capital One's. I don't believe it's as good as it used to be as it no longer includes Capital One's "better" cards. But it still may return a useful result. Again, we're looking for product names and interest rates. I'm betting they may offer you a Platinum card and maybe a QuicksilverOne. Platinum cards are usually upgradeable to a full no-fee Quicksilver after a period of time. QuicksilverOne cards have rewards, but they have an annual fee and are very hard to upgrade. If it comes down to a choice between these two cards, you definitely want to choose the Platinum.

I see two options for Discover. One would be to accept their offer for a secured card right now. Another would be to wait a bit longer and hope to be offered an unsecured product. It's possible that your Capital One card's one-year anniversary could make a difference. If you opt to accept the secured card, I'd fund it at whatever level you feel you can afford and hope that it eventually unsecures at that higher limit.

Another option is to look into credit unions. NFCU is a very popular choice around here. If you or a close relative have a military connection, I think they'd be a very good fit for you. If they can't offer you an unsecured card right now, they'd likely be ready to offer one soon enough.

To strategize, if you're interested in another Capital One card, they should come first. They're the most sensitive to new accounts. NFCU and Discover won't get bent out of shape if there's a new card on your report.

As far as scoring goes, three cards are a good thing over the long term, and some say five is better. But as I mentioned, you don't want to rush this. There are penalties for new accounts and inquiries. In particular, there's a penalty when one's youngest revolver is under a year old.

A second card will probably bump your score right away, i.e. it's mere presence will likely offset the penalties for inquiries and new accounts. A third card may result in either a ding or a bump, but it would help over the long haul. Starting with card #4, you're going to be dinged before you see bumps.

But as mentioned previously, let your score take care of itself. You want to get useful products into your pocket. Banks will have their own requirements independent of scoring. The critical thing is to avoid making any moves without asking here first.

Re: Cap One Sec CLI Questions and Advisement

Anonymous — Tue, 11 Aug 2020 18:52:16 GMT

@HeavenOhio

I did Capital Ones PreQualify - they offered me:

Platinum @ 26.99%

No Annual Fee
&

QuickSilver One @ 26.99%

Annual Fee: $39

What are you thoughts with this info? Still nervous of eating a hard inquiry , these are pre qualify and not pre approved (read about the difference between the two, double speak in my opinion)

With this information, would it be best I attempt to move forward with trying for Cap One Platinum, or Disc Secured? No military affiliation, nor any family.

I have quite a few negatives on my reports all centered around student loans. The negatives being the acconts late payments.

These late payments are supposed to be falling off in 2021. Unfortunately, I'm on garnishment, but they're getting more every month versus me asking for IBR, and the "late payment" reporting has stopped.

If this isn't enough information let me know what I'm missing.

You're so knowledgeable

Re: Cap One Sec CLI Questions and Advisement

HeavenOhio — Tue, 11 Aug 2020 22:25:19 GMT

@Anonymous, the pre-quals from Capital One are likely solid. The definite interest rate coupled with your positive recent history with them work in your favor.

However, the high interest rate indicates that this will likely be a low-limit card that probably won't grow a lot. That's not a big issue right now. If you grab the Platinum card, it would still help to solidify your report and work in your favor for future approvals. And because there's no fee or deposit, you can let it hang around indefinitely.

One downside to Capital One is that they pull all three bureaus. But if you're working methodically and pacing yourself, the inquiries shouldn't get in the way of future applications.

You could grab both of these cards if you'd like. Of course, sticking with one is fine too. I think choosing one over the other is really a toss-up; there are advantages to each of them.

How close is your Capital One card to reaching a year in age? If you're close, you might want to hang on and see what the pre-quals have to say at that point. An option might be to grab the Platinum now and hope that it'll help you prequalify for an unsecured Discover card in the coming months.

With NFCU not being an option, you might want to look into local credit unions.

Re: Cap One Sec CLI Questions and Advisement

Anonymous — Thu, 13 Aug 2020 00:07:26 GMT

w@HeavenOhio

Thank you so much for your time, I'm hoping you can answer a few more questions please.

1)If I applied for Capital Ones "Platinum" card - I read that Cap One only allows consumers to have a maximum of two cards. Would it then make it more difficult for them to consider "graduating" any of them? - it would be harder to graduate from the "Capital One Platinum" card you said too, right?

2) Roughly 6 months ago I joined a credit union called SEFCU (to open up future options for auto loans as I have an aging 2007 vehicle) I've been doing my best to establish good payment history in the event my car quits - I might be able to get a decent rate on an auto loan:

- They unfortunately don't have a pre qualify tool.

I looked into my Capital One Secured statement history and counted 13 closed statements.

- I only currently have 1 hard inquiry from this account ~13 months old now.

3) Do you know any information on the Discover secured graduation process? The minimum deposit is $200, but you had said to put as much as I can afford. If I only put $200 and many months down the road they graduate me - do you only get an unsecured line equal to your original deposit?

Im somewhat nervous about applying for Capital One Platinum & Discover Secured bringing my hard inquiries to 3. I feel like then I'd be toast on applying for anything else for the next 2 years. BUT , If two additional cards will help my score and payment history I would do it.

Maybe it's my impatience, but if I applied for both of those cards - in reality I would have to let them rock for at least another year or two before looking around for the next steps? Does that seem like a plan?

Re: Cap One Sec CLI Questions and Advisement

Face_Value — Thu, 13 Aug 2020 02:50:27 GMT

I would hold out a month or so and check back on the discover pre-qual. I think you are close to the unsecured.

Re: Cap One Sec CLI Questions and Advisement

HeavenOhio — Fri, 14 Aug 2020 10:44:51 GMT

@Anonymous, if customers have two or more Capital One cards, their applications for for subprime cards will be denied. Subprime cards include the Secured Mastercard, Journey, Platinum, and QuicksilverOne.

If customers have five or more Capital One cards, their applications for mainstream cards will be denied. Mainstream cards include the Quicksilver, SavorOne, Savor, VentureOne, Venture, and Spark.

That means you're OK for the Platinum if you choose to apply. If you have an interest in a Captial One card in the future, it'd be for one of the mainstream cards.

As far as inquiries go, note that Capital One pulls all three bureaus. Discover will likely pull only one. Inquiries shouldn't be a problem as long as you're not applying any more often than every six months or so.

The reason we're saying that you can get away with two apps right now (only if you want to) is because you didn't get a second card at the six-month point in your history. If you were to grab two cards right now, I'd wait another six to nine months before applying again. That would still keep you at one card every six months or so.

I agree with the advice above about waiting out the Discover pre-qual. I think they'll offer an unsecured card sooner than later even if you make no other moves in the meantime. I'm not that knowledgable about Discover's graduation. But seems that graduating at a point between seven and twelve months is common. There'd be a lot of information around here if you search this forum.

My suggestion would be to check with SEFCU. The fact that you've been with them for a while may position you for something that's better than either the Capital One Platinum or Discover Secured.

Re: Cap One Sec CLI Questions and Advisement

Anonymous — Sat, 15 Aug 2020 04:40:30 GMT

@HeavenOhio

Applied for the Cap One Platinum.
CL $300 😒. You were definitely correct telling me it was going to be a low limit card.

My Cap One Secured CL is $550 ($99 secured deposit + $50 addl secured deposit + $100 unsecured + $300 6mo credit step).

Couple questions on some behaviors / game plan going forward.

1) Should I expect a similar CLI of ~$300 at 6 months on the Plat? (as it features credit steps)

2) Regarding usage, two part question

- I normally do 2-3 charges a month on my secured utilizing up to 50% of the CL. I normally pay it off immediately after the charge posts so they haven't dinged me on the util %. Should I bump up my usage dramatically ?

-Must I do this on both the secured and unsecured, or is it best to focus most of the usage on the unsecured plat

3) What the best game plan be looking ahead beyond 6 months+?

-Keep looking into discovers pre-qualify to see if I can get an unsecured product, or do you think it's best to just eat the inquiry going to 3 total and go for Disc secured now?

-Attempting to manually request CLI to grow the CL of the plat over time?

-Will capital one pre qualify tool do anything for me beyond this point? The tool says it only qualifies for 3 products period: Platinum, QS, and Secured.

I discovered Cap One "product upgrade" link, do you think this should be something I should check occasionally as well?

I'm really trying to be able to grow to some type of unsecured product that has a CL of at least $2K so I don't have to micromanage so much for utilization.

Re: Cap One Sec CLI Questions and Advisement

HeavenOhio — Sat, 15 Aug 2020 14:50:12 GMT

@Anonymous, congratulations on the new card.

The good news is that your new card will probably get a small CLI at the six-month point. When it becomes three months old, you can start requesting CLIs once a month as long as you don't get your hopes up. People used to report being able to get an additional CLI in that three- to six-month range, but that seems to be happening less often lately. If you do see success, that wouldn't affect your six-month CLI. However, starting with the six-month CLI, you won't see limit increase offers any more often than once every six months.

The bad news is that this card probably won't grow my much, although there have been exceptions. Capital One cards issued with very low limits tend to be stuck in "starter buckets," and limits likely won't grow past $750 or so. If you happen to be one of the lucky ones whose limit increases to $1,000 or more, the chance that the card will continue to grow improves significantly. The general recipe for increasing Capital One limits is to spend and pay in full. However, as mentioned, spending may not help much on a starter card.

Start checking the upgrade link when your card is about three months old. A lot of people see offers to upgrade to a full Quicksilver at about the four-month point. The chances of this happening sooner or later are excellent. Usage habits don't seem to contribute a lot when it comes to generating a Platinum-to-Quicksilver upgrade offer. If you hit four or five months and you're not seeing an upgrade offer via the link, call in or chat. Sometimes, the link misses things.

With the new Platinum, use the card as much as you'd like as long as you never exceed the limit. Pay as often as you need to in order to keep credit available. Curtail use on this card as the statement approaches. You want to the statement to cut with a balance between $5 and $86 (28.9% of the card's limit).

I'd suggest using the secured card once a month then paying that balance as soon as the charge posts. The goal would be to show usage and to generate a statement balance of zero. If you want to use the card more, that's fine too. Just make it a goal that the statement balance is zero. If the statement dates on your two cards are staggered, you can use this card for charges while your Platinum is "resting."

The reason for controlling your balances in this fashion is so the utilization portion of your score will be optimized in case the opportunity for a new card comes up. FICO likes it when one card reports a small balance with the rest of one's cards reporting zero. Captial One cards report the statement balances soon after the statement is issued.

If your best laid plans for controlling your statement balances mess up from time to time, it's not a big deal. Report your desired balances the next month, and your points will come back. Once your score grows, you won't need to be so meticulous about your balances. What you're seeking right now is a good "look" in case you want to apply for something.

Definitely keep checking the Discover pre-qual tool. Also, give your credit union a call. They might surprise you. You have room for two more cards over the next few months. Card number five should wait until your secured card reaches 25 months in age.

With Discover and the credit union, I don't think timing is all that critical, i.e. I don't think waiting to act on an opportunity is a big deal. With some banks, we'd suggesting waiting three months, six months, or whatever since your last app. Capital One is one of those banks, but you took care of them by applying for them first.