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Make the best of a $300 Limit?

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Kinglord
Regular Contributor

Make the best of a $300 Limit?

Building new Credit!

 

Had only a Secured US Bank Credit Card.  Was happy to be approved for a Capital One, however the limit is $300.

 

1.  Planning on running around a $100 balance to keep the 1/3 ratio of debt to credit.  Better Advice?

 

2.  When do I even attempt a CLI?

 

Any advice is awesome!  Thank you!







Message 1 of 11
10 REPLIES 10
Anonymous
Not applicable

Re: Make the best of a $300 Limit?

It is best to use your limit and nearly pay or pay off every month. You build a payment history and utilize the card which both work in your favor.  If it is your only card, then I would keep a small balance.  Use it for gas or groceries and just make multiple payments every month and just make sure you have it paid in full or nearly so by your due date and your statement cut off date.

 

Capital One will not even entertain a credit limit increase if you havent had the account open for at least 6 months.  After 6 months you may get one if you have kept your payments on time, you have utilized the card, and you are not delinquent on any other account (they review your full credit report every month).

 

I have been with them a long time and if you treat them well, they will do the same.

 

Don't be afraid to use your card but treat it like an extension of your cash/check book and not as a source of income and you will do great.

 

Message 2 of 11
keithbward
Frequent Contributor

Re: Make the best of a $300 Limit?

more than likely you're enrolled in their credit steps program and you will be automatically granted a CLI to $500 around your 7th month.  (after you make 5 payments) But some people have used their card and made multiple payments during each month and received larger limits due to usage. You could try contacting the EO via facebook as I've seen some people with success that route. Capital One usually as of late have been known to CLI every 6 months

Starting Scores - EX 547 || EQ 541 || TU 538 - 01/21/2014
Current Scores - EX 691 || EQ 628??? || TU 695 - 08/04/2015
Goal Scores - 720 across the board
Current Utilization - 12% and going down
Message 3 of 11
DrZoidberg
Established Contributor

Re: Make the best of a $300 Limit?

Don't max the card every month. That's horrible advice. Use 10% or less each month. So let no more than $30 report each month. This is how you properly use a card. Majority of 800+ score folks use between 2-7%, so keep that in mind. 

Message 4 of 11
Anonymous
Not applicable

Re: Make the best of a $300 Limit?

There is a difference on what you let report and what you use.  Telling him to use $30 and not any more isn't good advice.  I was clear about making sure what reports is a small to no balance but since it is his only card to make sure a small balance reports at statement cut off.  I use mine as cash as I have the cash rewards card and earn more rewards actually using the card and paying purchases weekly and I am aware of my statement cut off date.  Capital One said it themselves that they favor the card actually being used instead of just one purchase a month and then minimum payments being made.

 

I did not advise him to max out the card.  I spend $2000 a month on my cards but I have a reported utilization of 1-4%.

Message 5 of 11
sreneesa
Frequent Contributor

Re: Make the best of a $300 Limit?


@Anonymous wrote:

There is a difference on what you let report and what you use.  Telling him to use $30 and not any more isn't good advice.  I was clear about making sure what reports is a small to no balance but since it is his only card to make sure a small balance reports at statement cut off.  I use mine as cash as I have the cash rewards card and earn more rewards actually using the card and paying purchases weekly and I am aware of my statement cut off date.  Capital One said it themselves that they favor the card actually being used instead of just one purchase a month and then minimum payments being made.

 

I did not advise him to max out the card.  I spend $2000 a month on my cards but I have a reported utilization of 1-4%.


+1

Message 6 of 11
DrZoidberg
Established Contributor

Re: Make the best of a $300 Limit?


@Anonymous wrote:

There is a difference on what you let report and what you use.  Telling him to use $30 and not any more isn't good advice.  I was clear about making sure what reports is a small to no balance but since it is his only card to make sure a small balance reports at statement cut off.  I use mine as cash as I have the cash rewards card and earn more rewards actually using the card and paying purchases weekly and I am aware of my statement cut off date.  Capital One said it themselves that they favor the card actually being used instead of just one purchase a month and then minimum payments being made.

 

I did not advise him to max out the card.  I spend $2000 a month on my cards but I have a reported utilization of 1-4%.


Try reading again. I said let no more than $30 report each month. I never said only use $30 a month. On the other hand, your reply can be interpreted to suggest to max out the card every month which is why I advised against it. 

Message 7 of 11
Kinglord
Regular Contributor

Re: Make the best of a $300 Limit?

So what I am hearing is that I want to use the cards throughout the month, paying off in a timely matter, but when it comes down to reporting time I want a balance of about 10% to remain?  So....for the $300 cards that is $30.  For my $1000 secured card, that is around $300?

 

Is this accurate?

 

Additionally, how do you find out when the cards balance will be reported?







Message 8 of 11
Whitneyy
Valued Contributor

Re: Make the best of a $300 Limit?


@Kinglord wrote:

So what I am hearing is that I want to use the cards throughout the month, paying off in a timely matter, but when it comes down to reporting time I want a balance of about 10% to remain?  So....for the $300 cards that is $30.  For my $1000 secured card, that is around $300?

 

Is this accurate?

 

Additionally, how do you find out when the cards balance will be reported?


My payments for capital one are due on the 7th and they report the 13th, so possibly like a week or so later? You can always call them and ask too!

GOAL - 700 FICO across the board!
Message 9 of 11
DrZoidberg
Established Contributor

Re: Make the best of a $300 Limit?


@Kinglord wrote:

So what I am hearing is that I want to use the cards throughout the month, paying off in a timely matter, but when it comes down to reporting time I want a balance of about 10% to remain?  So....for the $300 cards that is $30.  For my $1000 secured card, that is around $300?

 

Is this accurate?

 

Additionally, how do you find out when the cards balance will be reported?


Yes. You can use your card as much as you want but when it comes time to cut the statement you want that to be under 10%. For your $1k card 10% is only $100, not  $300.

Message 10 of 11
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