@Anonymous wrote:I'm rebuilding my credit, so I was just approved for a Cap One secured. They needed a $49 deposit for a $200 limit. I deposited $149 for a $300 limit.
I know I can deposit more until I activate the card. My question is, if I do deposit say, another $300 (so $600 limit), will Cap One be more apt to give me a higher CLI in a few months+ if I start out with a higher limit than the bare minimum offered?
Thanks!
*Generally speaking IMO for young new to credit builders (vs rebuilders with aged histories to pull from) the amount of the CL is MEANINGLESS
The scoring model is looking for on-time payments and debt load usage...that is the % of debt/the cl of said account
The model doesn't give a crap the dollar figure...the on-time payment issue is = to a true/false question like in school it's either true the account PAID AS AGREED or false, period!
And the % of debt is in relation to 'whatever' the CL is ...the model just computes %
10% is 10% period
* Now later with a mature, aged file ...sure we can talk about CL mirroring by 'some' vendors but this a young new to credit file it's a red herring issue, a waste of good energy the bottom line is keep the reported usage % LOW and pay on time and allow that data to report to the CRAs and in return your score rockets and the vendors will react to the SCORE...and again the score happens based upon the data fed to the scoring model ...to many ppl overthink feeding the one lender usage forgetting that UW of CLs still often is determined by the score so IMO the 1st goal is to stroke to score model, it's the number and info that all will see and use vs anything else
With regards to Cap-1 Cli on the secured account it's already computerized and automated you'll get either a $300 or a $500 bump, period end of discussion
It's mindnumbing clockwork...
Save your money it'll just be stuck in that anchor....use it to make sure your reported debt loads are low
Trust me keep your payments on time and your reported debt loads low and the CLs offred will sky rocket in no time, it just takes a little bit of patience.
You have
@Anonymous @ $200
@Anonymous @ $300
@Anonymous @ $500
So you have $1000 in total CLs which is just fine....just REMEMBER whatthe goal is, keep your eye on the ball and not go crazy like a kid at X-mas
Strategically, use the cards to build HISTORY vs attempting to use them as credit cards.....I'm goingto say that again DO NOT use them or think of them as credit cards for use right now...they are TOOLS to build a beautiful profile to be used in the future....right now it's just
a) on time payments and
b) low debt ratio
AND NOTHING ELSE, period!
If you do that I guarantee you, you won't recognize your profile by X-mas...remember that's only 10 reporting cycles worth of history but if managed w/o madness by then you're lookin very PRETTY to the boys in the yard
Here's the deal
Never let a more than $100 or 10% of your total $1000 CLs report as outstanding debt in any month...
Preferably only have 1 of your 3 report a balance at all
You don't want zero on all at he same time ...so it's best to have 1 show above zero but less than $99 (as Fico is going to round up no matter what, so if you want 10% or less keep it at $99 because $100.01 wil round up to 11% , which isn't a biggie just so you know)
So again one card with $99 or less along with two cards reporting zero...as the model punishes you for having morethan one card with ANY outstanding debt more matter the amount...think true false as I mention earlier ...the details don't matter with regard to that specfic point it's either a yes more than one in use with debt or not, so $1 counts as a 2nd card with debt
This is just playing a chess game vs the computer for 8-12 months vs getting suckered into using checker pieces on a chess board like everybody else
Don't fall for 'bonus' points or rewards nonsense ...that is if your goal is score building
Build the score before you start collecting a bunch of accounts with less thn optimal terms and CL....trust me they'll gladys approve you earlier but then you're either stuck in the credit minors or at least playing in the minors too long (at too high a cost) than otherwise required had one just played it cool and with strategy in mind from the start vs WIDE EYES
For right now, IMO guard your reported usage with a vengeance and set your sails long-term (8-10 months) for big CL ....keep it simple
show a little leg, pay on time and leave the BUYING stuff OFF the credit cards for now
Good luck
P.S.
I know some will disagree but the purpose IMO of these starter cards is only to build payment history, we all know they are too darn small to do anything else with, so why FORCE a square peg into a round hole...either way it's still gonna be a X cl card with Y amount of age...so let it do what it was designed to, display some payment history over time it's as I say CONSTANTLY...
just an audition, you can't win an Oscar duringthe audition, so chill out and SHOW your talent of low debt usage and impeccable management...that's the only award giving out at this level, kid...save the speeches