topic Re: Capital One Secured !!! in Rebuilding Your Credit

Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 17:26:38 GMT

Ok ... just got my little baby in the mail last night - she's so cute & plastic lol

.... (took 3 weeks since I applied) I only have a $200 limit & am using for the purpose of rebuilding

& I've got to stretch this $200 for a 6 month gardening period.

So how do I work this utilization game? I'm thinking about charging $18/month (9% util) so I can have the maximum pay out for the best CLI in the future & so I can get approved for their better cards... & hopefully someday an amex gold or CSP. If you only had a $200 cl or if you have a $200 cl, what would you do regarding this? Ultimately, my goal is to use this to show positive payment history & to get my foot in the door with better cards.

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 17:33:14 GMT

Personally what I did with mine was put my gaming subscription that I pay every month anyways on the card that was 15 bucks a month and then just paid it off. This way I wasnt spending extra money that I normally wouldnt spend, and creating a good relationship with Cap1.

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 17:39:04 GMT

How did it work out for you? Did you eventually apply for an increase or a different card with a higher limit?

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 17:40:48 GMT

I'm hardly an expert, but I'm following advice I've seen frequently repeated on this board in regards to rebuilding. I've only got secured cards as well, so relatively small limits for now. But I am keeping on top of my statement dates and cycling regular expenses (gas, groceries, bills, etc) through my cards. As these are expenses I'd normally be making from my bank account, I have the funds to pay them. Then I am paying down before the statement date. I'm letting a <9% report to statement on one card, and the others report 0 at statement. This way, I am "using" my full available credit line, but only letting one card report at <9% (and that gets payed off before the due date, thus avoiding interest on whatever percentage I let go to statement). By only using these for normal expenses, I avoid building balances I can't immediately pay.

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 17:42:27 GMT

I never did end up getting an increase on the secured one, HOWEVER, I did get approved for a Quicksilver 1 and thier Platinum both with $500.00 credit lines within 5 months of having the Secured lines. This will open up many more options for you. Getting a CLI on the secured line is about as rare as a unicorn. Thats not to say that you cant get a CLI on a secured card its just very difficult. These cards aren't meant to mature like thier other products.

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 17:51:51 GMT

Hubby and I were both approved for a QS1 (500) and Platinum (500) a month after opening our Cap1 secured.

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 18:04:16 GMT

@Anonymous wrote:
Hubby and I were both approved for a QS1 (500) and Platinum (500) a month after opening our Cap1 secured.

@Anonymous, thanks guys for the advice so far ..... @Anonymous , do you mind sharing your scores at the time of applying for the QS1 & Platinum? Did they automatically preapprove you or did you apply for the cards blindly?

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 18:06:56 GMT

@Anonymous wrote:
Ok ... just got my little baby in the mail last night - she's so cute & plastic lol
.... (took 3 weeks since I applied) I only have a $200 limit & am using for the purpose of rebuilding
& I've got to stretch this $200 for a 6 month gardening period.

So how do I work this utilization game? I'm thinking about charging $18/month (9% util) so I can have the maximum pay out for the best CLI in the future & so I can get approved for their better cards... & hopefully someday an amex gold or CSP. If you only had a $200 cl or if you have a $200 cl, what would you do regarding this? Ultimately, my goal is to use this to show positive payment history & to get my foot in the door with better cards.

At this point do not even WORRY about "playing the UTI game". Just use your card for everything you would normally use your debit card for, and pay it down as often as needed, so it does not carry a large balance from one month to the next. The "UTI game" as you put it, is simply a method to peak your scores right before a big ticket credit app, such as a car loan or mortgage. It is important for you to know what the ideal UTI is, but it is NOT important to maintain that UTI at all times - not for long term score growth. You get that from payment history and length of credit history.

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 18:40:13 GMT

WiscoBrokeGirl - We both got prequals. Hubby's scores were high 500's, mine were nonexistent. And mine are still nonexistent. He got the 7-10 day message, verification issue, I got instant approval

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 19:38:07 GMT

Hi WiscoBrokeGirl (we might be neighbors, I'm from Wisc too) ... And I too got the Cap1 Secured a little bit ago.

As others have said, I use mine for things I'd normally use my debit card for. Mainly gas to and from work, or weekend trips. I did use it once to buy some glassware for my bar at a place that was going out of business, so that was an unplanned, but still within my budget expense. My plan for now is to charge around $60-$80 a month, and then pay it down to a $10 balance or so, maybe a little more. Do that for a few months and then apply for Cap1 unsecured cards.

Also going to apply for the Discover Secured card and possibly one other.

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 20:04:20 GMT

FYI, I got denied for QS1 with actual FICOs 606 TU & 609 EQ (EX unknown at the time I apped). I had no charge-offs, but 1 collection account with DOFD in 2012, and last reported 2014. My mistake as I took Credit Karma's advice on "good" approval odds and needless to say I won't be repeating that mistake again.

It may make a difference that I was once an AU on a Cap 1 card that was charged off in 2004, but it was never my account/debt and has been a long time ...

I know everyone says Cap 1 is pretty forgiving/generous, but that's obviously not my experience, so I won't app with them again unless I actually get a prequal first. I actually got a counter for their secured card, and just kind of laughed it off.

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 19:42:49 GMT

@Anonymous wrote:
@Anonymous wrote:
Ok ... just got my little baby in the mail last night - she's so cute & plastic lol
.... (took 3 weeks since I applied) I only have a $200 limit & am using for the purpose of rebuilding
& I've got to stretch this $200 for a 6 month gardening period.

So how do I work this utilization game? I'm thinking about charging $18/month (9% util) so I can have the maximum pay out for the best CLI in the future & so I can get approved for their better cards... & hopefully someday an amex gold or CSP. If you only had a $200 cl or if you have a $200 cl, what would you do regarding this? Ultimately, my goal is to use this to show positive payment history & to get my foot in the door with better cards.
At this point do not even WORRY about "playing the UTI game". Just use your card for everything you would normally use your debit card for, and pay it down as often as needed, so it does not carry a large balance from one month to the next. The "UTI game" as you put it, is simply a method to peak your scores right before a big ticket credit app, such as a car loan or mortgage. It is important for you to know what the ideal UTI is, but it is NOT important to maintain that UTI at all times - not for long term score growth. You get that from payment history and length of credit history.

@Anonymous the say 'play your position' as @Anonymous states don't overthink the util-game

@Anonymous approach is one I like just slap a low budget item on there that you normally would pay monthly anyway......

Netflix-Hulu-gym membership...something along those lines.

IMO a TWC (train-wheel-card) isn't one to actually 'use' anyway it's a tool nothing more..a secured card allows you into the credit 'game'.....

Now look 'pretty' for 'picture day' (credit reporting days).....

As several have mentioned just about everybody whose approved by Cap-1 for theior secured will be able to get approved for their

unsecured Plat and or QS1 in short order and both those generally will have the credit steps where as long as you pay on-time

and do nothing dumb you'll have CL's with commas by years end.

And likely offers and preapproves from other suitors....just don't over spend and never ever even approach a late payment and you'll be fine.

Also I reccomend for rebuilders to use your statement cut date as a demand date to pay NOW...that way you train yourself to always have at least the minimum payment in so early you won't know what a late payment smells like.

Ex: if your statement cuts on the 10th with a 25 day grace period making the Due Date the the 5th of the following month.....

Why 'wait'? Pay the bill or at least your minimum on the 11th (the immediate day after the statemenmt cut) this kill two birds

a) Your account was report with a 'balance' on the 10th and

b) Since you've paid on the 11th the Due Date of the 5th has already been met...any addtional payments can be for the sake of saving on % and

killing your debt but ther 35% juice (the biggest part of your score) has been secured darn near a month early...

Never putting your on-time payment history anywhere NEAR jeopardy....

I hate when ppl play 'close' to the Due Date ...the amount required to grab that 'on-time' juice is normally just a B.S. minimum payment so make it NOW!

And you've still got 3.5 weeks of float if you want to use it

But for the OP

If you actually act like you don't 'need' the credit while you're building you'll build a very nice profile so later in life when/if you 'need' to use it you've got it.

Play the gentle use game while your building or some folks 'ride' everything thru their cards and PIF seeking 'rewards' and that sort of thing I'm not totally opposed to that thinking but I don't 'preach' it because too many ppl 'fail' at managing lots of numbers on their cards so I prefer to keep the dollar amounts OFF the cards, so there are less hiccups and 'mistakes' made with 'running' gobs of money onto cards....

But that's just me...my experience has seen too many ppl fail given too much too soon I prefer to play 1st base 1st then move to 2nd base in terms of keeping that overall amount les than 30% period that way you don't have learn to get it DOWN if you keep it down, as a rule from Day 1

9% is ideal and to me 20% should be ORANGE threat level and 25% is RED lights, large men and black cars scary...if you keep it there you'll be fine ....'rewards' be darn

Again until and unless you are a PRO at usage, manangement and juggling

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 19:48:38 GMT

To update you on my experience with Cap1 (which has been a fantastic one) I started with at $200 secured card for 6 months doing my gaming subscription every month on it. I then applied to the QS1 and the Platinum unsecured and got approved for $500 credit on both. Today (1 month after having Platinum unsecured) I requested that it be upgraded to a reg QS card (which is one of thier prime cards) and was approved. If you do exactly what you are supposed to with Cap1 they will reward you without it taking forever. My credit score has also increased 100 points over the 6 month peroid just with useage of thier cards and the increased credit limit though them.

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 19:57:47 GMT

Great stuff @ Aldaria

Your experience seems to be the normal with Cap-!

As I said earlier I can't hink of anybody who was approved for the secured,

Who couldn't turn right around and get either the Plat and QS1 or both...within months

like 3-6 at the most

Go ahead check the board there are dozens of examples...

Cap-1's rates are high but so are the approval rates

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 20:13:40 GMT

@Anonymous wrote:
FYI, I got denied for QS1 with actual FICOs 606 TU & 609 EQ (EX unknown at the time I apped). I had no charge-offs, but 1 collection account with DOFD in 2012, and last reported 2014. My mistake as I took Credit Karma's advice on "good" approval odds and needless to say I won't be repeating that mistake again.

It may make a difference that I was once an AU on a Cap 1 card that was charged off in 2004, but it was never my account/debt and has been a long time ...

I know everyone says Cap 1 is pretty forgiving/generous, but that's obviously not my experience, so I won't with them app again unless I actually get a prequal first. I actually got a counter for their secured card, and just kind of laughed it off.

I would geuss that the problem might a severely depressed EQ FICO Score 5 (used for mortgages), which is what Cap One quotes on their denial letters. Do you happen to know what they said your score was on your denial letter? Do you know what your mortgage scores are?

I doubt the charge off that old, on an account your were not even responsible for is an issue. Too many people have gotten accounts just over a year after a CO. There is something else at play... You might give us a complete rundown on your profile and maybe something will stand out for someone....

Regarding CK's advice - my experience was just the opposite - my wife did the prequal and the only thing that came up was the secured card, then later I noticed that CK was showing the approval chance for QS1 as "good", so she went ahead and applied and was approved. So it is definitely a YMMV sort of thing.

Ur Tu wasRe: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 20:14:06 GMT

You say your TU was 606 and EQ was 609 EX unknown, then mention a CK recommendation for Cap1. Did you get your scores from Credit Karma? If so, those are FAKOs, not FICOs

Re: Ur Tu wasRe: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 20:27:56 GMT

In my personal opinion, If you are rebuilding credit I would never start off with an unsecured card with a company you dont already have a relationship with at the risk of getting denied and a HP on your credit. I also never follow the advice of CK who claims I have a poor chance of getting a QS1 and Platinum card from Cap1 and was approved for both and upgraded to a prime card for them. For me the key is to build the relationship and prove to them that you are credit worthy before jumping face first into an application like that.

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 20:34:52 GMT

NormanFH wrote
I would geuss that the problem might a severely depressed EQ FICO Score 5 (used for mortgages), which is what Cap One quotes on their denial letters. Do you happen to know what they said your score was on your denial letter? Do you know what your mortgage scores are?

I doubt the charge off that old, on an account your were not even responsible for is an issue. Too many people have gotten accounts just over a year after a CO. There is something else at play... You might give us a complete rundown on your profile and maybe something will stand out for someone....

Regarding CK's advice - my experience was just the opposite - my wife did the prequal and the only thing that came up was the secured card, then later I noticed that CK was showing the approval chance for QS1 as "good", so she went ahead and applied and was approved. So it is definitely a YMMV sort of thing.

My real issue is non-use of credit for many, many years. I don't know my current mortgage score, but I tried to co-sign on a mortgage for my grandma (she wanted my income to qualify) about 2 years ago and was actually told by the lender I had NO credit score at that time.

I have one old student loan paid off in 2007 with no payments reported late (good standing).

Nothing else until I got a used auto loan late last year. I apped for the Cap 1 QS1 in late January when the auto loan was reporting but not yet posting payments (it's updating monthly by now).

I haven't gotten a physical denial letter, but got the email response, which I didn't see an actual score reported on. I unfortunately trashed the email and it's been permanently deleted by now, but if I recall correctly it was the generic "insufficient history" plus "too many negative accounts" (that part made no sense to me because there is only the one).

Re: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 20:38:58 GMT

You have the same issue I had when it came to my credit. All I had on it was student loans and no credit cards what so ever. I got approved for a car loan in April 2015 after the dealership fought on my behalf for 2 straight days. A secured card is where you need to start instead of going straight for an unsecured card. Show Cap1 that you are worthy of thier trust and will make payments on time and I promise you they will reward you in the long run. It doesnt take long to actually build up thier trust. This will help you in MANY different places on your credit.

Re: Ur Tu wasRe: Capital One Secured !!!

Anonymous — Tue, 23 Feb 2016 20:45:35 GMT

@Anonymous wrote:
You say your TU was 606 and EQ was 609 EX unknown, then mention a CK recommendation for Cap1. Did you get your scores from Credit Karma? If so, those are FAKOs, not FICOs

Those were the FICO scores reported by the secured cards I did get approved for this month.

I know better than to trust CKs scores, but as it happens, they are only about 3-6 points off for me. I am using CK primarily to see general trends as I work on building. Actual scores aren't really all that important to me at this point (at least not enough to pay for them).

I've got the auto loan opened, and now 3 secured cards, so I am just going to ride that out and see what my scores do over time. I would like to qualify for a mortgage sometime next year, if possible, but I can push it out to 2018 as well. I've already worked a bit with a loan originator to get headed in the right direction, and she thinks 1 year is possible with manual underwriting on an FHA loan, but of course, the longer I let "good" history build, the better the rates and options I'll have once I'm ready to go.