topic Re: Cap 1 in Credit Cards

Cap 1

Anonymous — Fri, 17 Jun 2011 03:23:35 GMT

This is my first post on the forums.

First of all, I would like to thank everyone on this board for the great advise!

But, I do have a few qestions for all the cap 1 cardholders on here.

I applied for a cap 1 card a few weeks ago and recieved it in the mail today. It is my first card. I really dont have any credit at all and this card has a lousy credit limit of 300. I was told that I am in the credit steps program, but was wonderng how realistic it is to get a limit increase before then? How soon is too soon to call and ask via the backdoor number?

Re: Cap 1

bichonmom — Fri, 17 Jun 2011 03:47:20 GMT

If you search under "cap one" or "cap 1" you will find many threads talking about the step program. 99% of the time, it seems that the cards will not go beyond the max CL of your step program, and they will not give any increases early.

People have tried running lots of money through the card and paying several times a month (So for example, on your $300 card, you could charge $200 and pay it part-way through your statement period, then charge another $200 and pay it 2 weeks later. So you've charged $400 on your $300 card in one month without going over your CL.) Anyway, people have done that in the hopes of getting larger CLIs or a CLI after the step program ended, and they've been denied. Cap One seems quite odd when it comes to CLIs. The rare person has posted a large CLI out of the blue -- but that seems to be the exception and not the rule.

Re: Cap 1

Walt_K — Fri, 17 Jun 2011 05:23:13 GMT

There are a couple people that have reported putting a large amount of usage through their card and getting their step increase a month early, but I wouldn't count on it. As for the card going beyond it's step limit, I think that is probably more likely than you getting an increase before your first schedule increase, but again, difficult to predict. My card was originally in the steps program with a $500 limit. I've had it for about two years. It's currently at $2500 CL. I used it fairly heavily for the first year. Hardly used it at all in the last 9 months. Since I rarely use it now, I don't anticipate seeing any further increases.

Re: Cap 1

slarano — Fri, 17 Jun 2011 06:00:45 GMT

Think of your Capital One card as a credit builder card. Essentially, it is. See what credit steps can do for you, and in a year or so (considering you say you have no credit history to speak of), your credit profile will be open for one or two more cards one step above Cap1.

Re: Cap 1

Anonymous — Fri, 17 Jun 2011 13:23:45 GMT

ThomasSEO: If you are unhappy with your CL, why not close the account? Maybe Barclays or Am Ex will give you a better deal?

Re: Cap 1

Anonymous — Fri, 17 Jun 2011 13:31:33 GMT

@Anonymous wrote:
ThomasSEO: If you are unhappy with your CL, why not close the account? Maybe Barclays or Am Ex will give you a better deal?

With no credit history at all? I don't think that the OP is likely to get approved by either of them. Right now, this is about building, and that takes time. I'd say keep the 300CL card, use it well, wait for the CS increase, and go from there. With responsible use, the OP will be well positioned in a year to apply for a card with better potential to grow.

Re: Cap 1

Anonymous — Fri, 17 Jun 2011 14:06:54 GMT

I understand that tinuviel, but the OP is unhappy with his CL. Why do business with a company you don't like or one which you feel is insulting or not appreciative of your worth? Or, you can accept the fact that this is the best one can do given one's personal circumstances and the bank is not to blame for offering very modest CL to an applicant they never heard of just weeks ago and who has a blank credit file or a credit file full of red flags (whichever is the case here.) Years ago I'd have been on Cloud 9 for half of that limit from Visa, MC, or AE just to get my foot in the door.

And if a larger CL is desired, I'm sure some CCC's would offer up to $2K on a secured card. And then there's the whole issue of credit unions which are more forgiving or understanding than banks.

Re: Cap 1

Anonymous — Fri, 17 Jun 2011 14:26:42 GMT

@Anonymous wrote:
I understand that tinuviel, but the OP is unhappy with his CL. Why do business with a company you don't like or one which you feel is insulting or not appreciative of your worth? Or, you can accept the fact that this is the best one can do given one's personal circumstances and the bank is not to blame for offering very modest CL to an applicant they never heard of just weeks ago and who has a blank credit file or a credit file full of red flags (whichever is the case here.) Years ago I'd have been on Cloud 9 for half of that limit from Visa, MC, or AE just to get my foot in the door.

And if a larger CL is desired, I'm sure some CCC's would offer up to $2K on a secured card. And then there's the whole issue of credit unions which are more forgiving or understanding than banks.

Good points. But, s/he's already used 3 inqs, and * IF * the s/he's already started to use the card, then s/he's also on the hook for the AF. In that case, why not get a year's worth of use out of it?

And yes, if s/he needs/wants a higher CL for right now, then a secured card would be a good option.

Re: Cap 1

Anonymous — Fri, 17 Jun 2011 17:50:04 GMT

Yes, I am already on the hook for that annual fee. I hate that the most, I think. I am tryig to build my credit the best I can, but unfortunately aside from some student loans, I dont have any credit history to speak of, so I guess you're probably right in that I should just keep this card and go with it...as far as uti is concerned, does it really matter for me this early in the credit game? should i be reporting only 10% on this card? That is only a measly 30 bucks

Re: Cap 1

Anonymous — Fri, 17 Jun 2011 18:10:41 GMT

Also, do you think being added as an anuthorized user on one of my dad's cards(he has one with a really high limit and has had it for 15 years) would help me out?

Re: Cap 1

MarineVietVet — Fri, 17 Jun 2011 18:16:29 GMT

@Anonymous wrote:
Also, do you think being added as an anuthorized user on one of my dad's cards(he has one with a really high limit and has had it for 15 years) would help me out?

Yes it can help you IF the account is older than any of yours (looks like it is), IF the payment history is long and clean, IF the utilization is very low, and IF it will report to the CRA's. Not all cards will do this. You need to ask the company first. You will inherit the entire history of this account. One caveat however; if this account starts to go south your credit will be affected as well. Keep that in mind.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: Cap 1

Anonymous — Fri, 17 Jun 2011 19:10:27 GMT

@Anonymous wrote:
Yes, I am already on the hook for that annual fee. I hate that the most, I think. I am tryig to build my credit the best I can, but unfortunately aside from some student loans, I dont have any credit history to speak of, so I guess you're probably right in that I should just keep this card and go with it...as far as uti is concerned, does it really matter for me this early in the credit game? should i be reporting only 10% on this card? That is only a measly 30 bucks

The key word here is "reporting." You can USE as much of your CL as you want, so long as you pay it off to below 10% before your statement cuts. Your statement amount is what will be reported.

So, let's say that you charge $150 one week. Turn around and pay it off via the website. The next week, charge, say, $200. At the end of the week, pay it off. The following week, you charge $175. At the end of the week, you see that your statement will cut in a few more days. So, you pay $150, leaving a $25 balance and hold off using the card until the day after your statement date. Then you resume using the card again, following the pattern just outlined. This way, you can charge much more than $30 -- more than your $300 CL, really -- and still stay < 10% reported util.

Make sense?

Re: Cap 1

Anonymous — Sun, 19 Jun 2011 00:32:50 GMT

Is it wise to do this? I mean spend a lot but pay it off before my statement generates? i dont have a problem with having the cash. I got this card to build credit, so I guess my question is, why would I charge a lot and pay it off before my statement hits vs just buy one thing for around $30, wait until the statement hits, then pay it off before the due date?

Re: Cap 1

addicted_to_credit — Sun, 19 Jun 2011 00:54:22 GMT

from what I have gathered from your posts you are not happy with your CL you can charge 30 or less dollars to obtain the desired UTL its your card and credit but I think from personal experience and what the other posters are trying to say is if you want your CL to grow then you need to use it as much as possible and since it is only CL of 300 dollars you will need to more than likely need to make multiple payments hence charging 200 and paying off then charging another 150-200 and paying it DOWN to under 10%

Re: Cap 1

bichonmom — Sun, 19 Jun 2011 01:25:30 GMT

Many people here have written about using their card and paying several times throughout the month, so #1, your util is low, and #2, you're using the card a lot as a way of convincing the CCC to give you a CLI. Well, it may work, but according to the loan rep at my local CU, the bank/CU couldn't care less about your doing that. She said they make NO money when we don't pay interest; the merchant fees/bankcard discount that vendors pay just covers their costs. She said that you could use card and pay it nearly every day, and it's not going to have any effect on how much of a CLI you get - or even if you DO get a CLI. She said the ONLY thing they care about is if your paying your bills on time and what your CR/score are (and not maxing out). She said the ONLY reason to use your card and pay frequently is if you get rewards -- that's it.