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Building credit with Capital One!

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New Member

Building credit with Capital One!

I am happy to say I am in the road to building credit! I am 19 years old (20th birthday is in 3 months) and I finally got my first secured credit card. I was approved for the Capital One Secured MasterCard. I have no credit score or any previous credit history (although I do have quite a few inquiries being an anxious teen previously). My deposit was $49 and my credit line is $200. Here's the timeline:

Got approved on 10/8/16
Sent deposit 10/8/16
Deposit taken out of account 10/11/16
Received materials in the mail (I don't remember probably a week before I received the card)
Received email cc was on the way 10/18/16
Received credit card 10/20/16

I will make any updates as soon as possible!
Message 1 of 11
10 REPLIES 10
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Established Member

Re: Building credit with Capital One!

Congrats. Slow and steady. Eventually you can probably get a Quicksilver. Capital One was very good to me when I started rebuilding.

Chase Sapphire Reserve ($24500) | Amex BCP ($36000) | Citi Double Cash ($27500) | Capital One Quicksilver ($11800)
FICO: 798 EQ | 812 EX | 792 TU
Message 2 of 11
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Contributor

Re: Building credit with Capital One!

Congratulations on building your credit 😊

Message 3 of 11
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Valued Contributor

Re: Building credit with Capital One!

Congratulations on your new card


     $500         $1,000        $1,300        $1,500        $1,850         $3,400        $3,500                            $9,500        $1,000
Message 4 of 11
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Community Leader
Mega Contributor

Re: Building credit with Capital One!

Great! Take your time learn the dos and donts and youll set yourself up nicely for the future!!Smiley Happy
Message 5 of 11
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New Member

Re: Building credit with Capital One!

Thank you! I pretty much have everything down pact, the only thing I'm confused about is the ulitlization percetage. I am planning to keep it BELOW 30% at all times, but I've heard the lower the better.. so can I use that 30% then make a payment before the statement posts to bring it down to around 5% or would it not make a difference?
Message 6 of 11
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Valued Contributor

Re: Building credit with Capital One!

You can max your card out multiple times a month and pay in full as long as you only have less than 10% on your card when the statement date hits.


     $500         $1,000        $1,300        $1,500        $1,850         $3,400        $3,500                            $9,500        $1,000
Message 7 of 11
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Contributor

Re: Building credit with Capital One!

Good job youngster enjoy that card and always think about your future.

Message 8 of 11
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Frequent Contributor

Re: Building credit with Capital One!


@Taeshai wrote:
Thank you! I pretty much have everything down pact, the only thing I'm confused about is the ulitlization percetage. I am planning to keep it BELOW 30% at all times, but I've heard the lower the better.. so can I use that 30% then make a payment before the statement posts to bring it down to around 5% or would it not make a difference?

Utilization - 101: This is based off of your credit report and the most recent information received by each credit bureau. FICO Scoring Models "Score" Utilization in two (2) ways.

 

#1 Overall Revolving Utilization - this is the total balance on all your "revolving accounts" i.e credit cards & store cards divided by the total credit lines on all your revolving accounts. General guidance is to keep this number below 30% at any time. If you are planning to apply for new credit (new loan, credit card, etc) you should get this below 10% with 5%-6% generally being ideal and maximizing your credit score.

 

#2 Per Account Utilization - very similar to overall utilization, but on a per account basis. Again under 30% as a general rule, once an account reports with over 30% utilization you typically see dip in your FICO scores. How much really depends on each individuals credit profile, the longer / older the profile the lower the impact. You see much greater negative impacts and dips when you have an account report 50% , 70%, 90% utilization.  

 

Lenders like Capital One all have their own formulas and risk models they use internally. Capital One generally wants you to use the card (a lot) but not carry a balance. Best practice is to use the card for everything, making multiple payments every month to keep available credit open and to make sure that when the statement cuts the balance is below 10% utilized. For a $200 credit line that means $20.  Play by their rules and, use the card, make lots of payments, and keep the statement balance under $20 and they will reward you with a credit line increase on the secured card and in 6 moths you'll probably be preapproved for a QuickSilver One MC or QuickSilver Visa with a much higher unsecured credit line.

Jan 2016 FICO 8s EX 505 - EQ 526 - TU 495 *** May 2017 FICO 8s EX 696 - EQ 695 - TU 705 *** INQs - EX 10 - EQ 20 - TU 12 *** TCL $282,650
Barclay AA - $28k | Cap1 QS $26k | PenFed Plat $25k | NFCU Sig VS $24k | Chase CSP $20k | Chase Ritz $20k | Amex SPG $20k | BofA BBR $15k | NFCU LOC $15k | BofA CR $13.5k | Sync Lowe’s $12k | Citi AA $10.5k | Amex Delta Plat $10.4k | Marvel MC $8k | Citi Costco VS $7k | Sync Amazon $6.1k | Amex ED $2k | Amex BCP $1k | Amex PRG NSP / $25k Pay Over Time
Message 9 of 11
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Regular Contributor

Re: Building credit with Capital One!

Good for you, I have a secured card with them also, and after 5 on time payments they increase my CL from $200 to $500, on the 7th month I applied for an unsecured card with them and got approved Smiley Happy I also had a secured card with my credit union and after 10 months got approved for an unsecured card with large credit limit. Follow the advice on this site and others like Nerdwallet etc and you'll be good to go.


FICO 8 (EQ) 702 FICO 8 (TU) 689 FICO 8 (EX) 691 Mar 2019
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