topic Re: HUGE Capital One increase?! Mistake? in Credit Cards

HUGE Capital One increase?! Mistake?

Anonymous — Thu, 28 Feb 2013 00:08:46 GMT

I applied for a the Capital One platinum credit card back in September. I received something from them saying that if I made my payments on time for 5 months, they would increase my limit from $500 to $750. So I made my payments on time and everything and was about to ask for the CLI. I just logged into my account to find this:

For your account ending in:

You've earned a credit line increase of $3,000.00!

Dear (my name),

You're a great customer, and we appreciate you. That's why we're happy to give you a credit line increase - you deserve it!

Your new credit line is $3,500.00.

That's an increase of $3,000.00.

Use your increase to help pay for daily expenses, or for that family trip you've been thinking about. You can also transfer balances from higher rate credit cards. Whatever your needs, it's nice to know you have more financial flexibility. The increase is automatic, so you don't have to do anything at all. Just enjoy!

I'm soooooo excited! Will this help my credit? I need a new car and was actually going to use my credit line to take out a loan. Is it still going to be possible with a credit line this high? This seems like an awesome site!

Re: HUGE Capital One increase?! Mistake?

Anonymous — Thu, 28 Feb 2013 00:14:02 GMT

I think I have too much credit now for a car loan. I'm only 18.

Re: HUGE Capital One increase?! Mistake?

Walt_K — Thu, 28 Feb 2013 00:16:33 GMT

Car loans and revolving loans are different beasts. The auto loan is secured against the car. Being a first time car buyer new to credit in general, you're not going to get the best rate, may need a higher downpayment, etc., but I don't think your CC is going to be an issue. Don't max it out.

Re: HUGE Capital One increase?! Mistake?

BrokaToe — Thu, 28 Feb 2013 00:18:07 GMT

WOW, that's almost unheard of, mainly because it's Capital 1. Their credit steps program is designed a specific way and normally only happens the way it's designed.

Congrats on the increase! I would consider this a milestone if I were you. Capital 1 is doing some strange things lately...

As for your credit, it will definitely help with utilization, if you have any balances reporting that is. But I don't know that I would recommend using your credit line as financing for a car. Simply because the interest rates are so much higher on a credit card. You'd probably be better off getting bank financing for an auto. But $3000 isn't that much to pay back and can be done quite quickly. I suppose it just depends on how you prefer to do your business.

Re: HUGE Capital One increase?! Mistake?

Simply827 — Thu, 28 Feb 2013 00:18:40 GMT

Yes this will help your credit as long as you take care of it. It will allow you to get even better offers in the future. Just don't charge 3K on it and you'll be fine for your car loan.

Re: HUGE Capital One increase?! Mistake?

longtermgardener — Thu, 28 Feb 2013 00:20:34 GMT

Congrats on CLI !! What was your usage like?. Did you pay your dues before the bill is generated?.

Re: HUGE Capital One increase?! Mistake?

Anonymous — Thu, 28 Feb 2013 00:38:27 GMT

Thanks guys, that's good to hear it probably won't effect my future car loan request. I'll try my best not to max it out, shouldn't be too hard. It is quite the milestone though. I wasn't even expecting 1.5k. Putting a car on my card sounded like a good idea for maybe 10 seconds. Especially with the 0% APR. But I couldn't imagine missing a payment or not being able to pay it off before my -% apr runs out. My usage and history was far from perfect. I used 80% of my $500 limit (bad), I made my payments an hour before they were due (had to balance my checkbook at 4 to make the payment before 5). Maybe it's so high because they think I'm going to mess up?

Re: HUGE Capital One increase?! Mistake?

Simply827 — Thu, 28 Feb 2013 00:48:36 GMT

Lenders don't give you money because they think/hope you're going to mess up. They've deemed you worthy and responsible, so be sure you behave that way with your finances going forward.

Re: HUGE Capital One increase?! Mistake?

LS2982 — Thu, 28 Feb 2013 00:49:20 GMT

CONGRATS!!!

Could be a sign that Cap1 is changing with the times!!

Re: HUGE Capital One increase?! Mistake?

Anonymous — Thu, 28 Feb 2013 00:51:10 GMT

Thats awesome!! Congrats!!!

Re: HUGE Capital One increase?! Mistake?

shorrttyycm1 — Thu, 28 Feb 2013 00:54:58 GMT

Nice increase...congrats!!!!

Re: HUGE Capital One increase?! Mistake?

Anonymous — Thu, 28 Feb 2013 02:12:07 GMT

Thanks guys. They must be making good changes. I talked with one of their reps last week and she was so nice! Love Capital One!

Re: HUGE Capital One increase?! Mistake?

Anonymous — Thu, 28 Feb 2013 02:18:27 GMT

@LS2982 wrote:
CONGRATS!!!

Could be a sign that Cap1 is changing with the times!!

Hmm....

Re: HUGE Capital One increase?! Mistake?

Credit_Me — Thu, 28 Feb 2013 02:34:21 GMT

Seems like Cap1 has been doing that type of increase in these last few months. My dad received same increase as you. I heard they were changing their cli policies so I guess it's true.

Congrats, take care of your credit!

Re: HUGE Capital One increase?! Mistake?

ObeyJohnny12 — Thu, 28 Feb 2013 03:15:40 GMT

What an increase! Congrats!

Re: HUGE Capital One increase?! Mistake?

gpfirestone — Thu, 28 Feb 2013 04:09:51 GMT

Car loans are ridiculously easy to get...I wouldn't be concerned. They just approve whatever unless you have negative accounts or try to buy a $80k car with an income of $25k.