topic Re: Path to Credit Limit Increase in Credit Cards

Path to Credit Limit Increase

Anonymous — Mon, 07 Jun 2010 17:46:19 GMT

I just got a Capital One card. It has a $300 limit. I also have a new Orchard Bank card with $500 limit. I haven't used either yet, but I want to really rebuild credit. I know util is a big part of it, so down the road I'd like to get credit limit increases. So my question is what's the best strategy to get those upgrades? My intention was to use one card for my phone bill and one for gorceries, so that I can pay them off in full each month. Would this be beneficial to me?

Re: Path to Credit Limit Increase

Anonymous — Mon, 07 Jun 2010 17:54:54 GMT

Good plan, Use them reguarly and PIF.

Re: Path to Credit Limit Increase

MarineVietVet — Mon, 07 Jun 2010 18:30:36 GMT

@Anonymous wrote:
I just got a Capital One card. It has a $300 limit. I also have a new Orchard Bank card with $500 limit. I haven't used either yet, but I want to really rebuild credit. I know util is a big part of it, so down the road I'd like to get credit limit increases. So my question is what's the best strategy to get those upgrades? My intention was to use one card for my phone bill and one for gorceries, so that I can pay them off in full each month. Would this be beneficial to me?

Use both of them to keep the accounts active but for maximum tweaking I'd let only one report a small (1-9% utilization) balance each month and then PIF before the due date. On the other one I'd always PIF before the statement posts. FICO likes to see less than half of revolving accounts report a balance each month.

Just my 2.5 cents.

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

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Re: Path to Credit Limit Increase

score_building — Mon, 07 Jun 2010 18:58:13 GMT

@MarineVietVet wrote:

@Anonymous wrote:
I just got a Capital One card. It has a $300 limit. I also have a new Orchard Bank card with $500 limit. I haven't used either yet, but I want to really rebuild credit. I know util is a big part of it, so down the road I'd like to get credit limit increases. So my question is what's the best strategy to get those upgrades? My intention was to use one card for my phone bill and one for gorceries, so that I can pay them off in full each month. Would this be beneficial to me?
Use both of them to keep the accounts active but for maximum tweaking I'd let only one report a small (1-9% utilization) balance each month and then PIF before the due date. On the other one I'd always PIF before the statement posts. FICO likes to see less than half of revolving accounts report a balance each month.

Just my 2.5 cents.

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

and less than five total accts carrying a balance.

Re: Path to Credit Limit Increase

terren2000 — Mon, 07 Jun 2010 19:02:18 GMT

how long can i have a credit card at 0$ balance before it hurts me and the account is considered not active?

Re: Path to Credit Limit Increase

MarineVietVet — Mon, 07 Jun 2010 20:42:10 GMT

@score_building wrote:

and less than five total accts carrying a balance.

I'm not saying you're wrong but this is the first time I've seen that particular stat. Where does that come from? Don't you mean reporting a balance on half or less of all TL's.

Re: Path to Credit Limit Increase

MarineVietVet — Mon, 07 Jun 2010 20:47:14 GMT

@terren2000 wrote:
how long can i have a credit card at 0$ balance before it hurts me and the account is considered not active?

The CCC's know when you've used it. IME you never have to show more than a zero balance for an account to be active. I have several cards that haven't reported a balance in many months but I use them every month for a recurring monthly expense then PIF before the statement posts. The CCC's stay happy because they receive the fees from merchants and I stay happy because I don't pay any interest.

Re: Path to Credit Limit Increase

score_building — Thu, 10 Jun 2010 05:23:41 GMT

marinevietvet- You are correct this is variable, I left out the all important IME

We know we typically want 1 (maybe 2) balances to report if trying to maximize FICO... and that going up from there can cause ding.

My magic number for a FICO score drop appears to be >5 accounts showing a balance concurrently.

Re: Path to Credit Limit Increase

smallfry — Thu, 10 Jun 2010 10:07:58 GMT

@MarineVietVet wrote:

@score_building wrote:

and less than five total accts carrying a balance.

I'm not saying you're wrong but this is the first time I've seen that particular stat. Where does that come from? Don't you mean reporting a balance on half or less of all TL's.

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

He must be inferring that info from using the FICO Estimator.