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Cap One Sec CLI Questions and Advisement

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HeavenOhio
Senior Contributor

Re: Cap One Sec CLI Questions and Advisement

@Anonymous, the pre-quals from Capital One are likely solid. The definite interest rate coupled with your positive recent history with them work in your favor.

 

However, the high interest rate indicates that this will likely be a low-limit card that probably won't grow a lot. That's not a big issue right now. If you grab the Platinum card, it would still help to solidify your report and work in your favor for future approvals. And because there's no fee or deposit, you can let it hang around indefinitely.

 

One downside to Capital One is that they pull all three bureaus. But if you're working methodically and pacing yourself, the inquiries shouldn't get in the way of future applications.

 

You could grab both of these cards if you'd like. Of course, sticking with one is fine too. I think choosing one over the other is really a toss-up; there are advantages to each of them.

 

How close is your Capital One card to reaching a year in age? If you're close, you might want to hang on and see what the pre-quals have to say at that point. An option might be to grab the Platinum now and hope that it'll help you prequalify for an unsecured Discover card in the coming months.

 

With NFCU not being an option, you might want to look into local credit unions.

Message 11 of 16
Anonymous
Not applicable

Re: Cap One Sec CLI Questions and Advisement

w@HeavenOhio 

 


Thank you so much for your time, I'm hoping you can answer a few more questions please.

 

1)If I applied for Capital Ones "Platinum" card - I read that Cap One only allows consumers to have a maximum of two cards. Would it then make it more difficult for them to consider "graduating" any of them? - it would be harder to graduate from the "Capital One Platinum" card you said too, right?

 

2) Roughly 6 months ago I joined a credit union called SEFCU (to open up future options for auto loans as I have an aging 2007 vehicle) I've been doing my best to establish good payment history in the event my car quits - I might be able to get a decent rate on an auto loan:

 

- They unfortunately don't have a pre qualify tool.


I looked into my Capital One Secured statement history and counted 13 closed statements. 

 

- I only currently have 1 hard inquiry from this account ~13 months old now.


3) Do you know any information on the Discover secured graduation process? The minimum deposit is $200, but you had said to put as much as I can afford. If I only put $200 and many months down the road they graduate me - do you only get an unsecured line equal to your original deposit?

 

Im somewhat nervous about applying for Capital One Platinum & Discover Secured bringing my hard inquiries to 3. I feel like then I'd be toast on applying for anything else for the next 2 years. BUT , If two additional cards will help my score and payment history I would do it.

 

Maybe it's my impatience, but if I applied for both of those cards - in reality I would have to let them rock for at least another year or two before looking around for the next steps? Does that seem like a plan?

 

 

 

 

Message 12 of 16
Face_Value
New Contributor

Re: Cap One Sec CLI Questions and Advisement

I would hold out a month or so and check back on the discover pre-qual. I think you are close to the unsecured.

Message 13 of 16
HeavenOhio
Senior Contributor

Re: Cap One Sec CLI Questions and Advisement

@Anonymous, if customers have two or more Capital One cards, their applications for for subprime cards will be denied. Subprime cards include the Secured Mastercard, Journey, Platinum, and QuicksilverOne.

 

If customers have five or more Capital One cards, their applications for mainstream cards will be denied. Mainstream cards include the Quicksilver, SavorOne, Savor, VentureOne, Venture, and Spark.

 

That means you're OK for the Platinum if you choose to apply. If you have an interest in a Captial One card in the future, it'd be for one of the mainstream cards.

 

As far as inquiries go, note that Capital One pulls all three bureaus. Discover will likely pull only one. Inquiries shouldn't be a problem as long as you're not applying any more often than every six months or so.

 

The reason we're saying that you can get away with two apps right now (only if you want to) is because you didn't get a second card at the six-month point in your history. If you were to grab two cards right now, I'd wait another six to nine months before applying again. That would still keep you at one card every six months or so.

 

I agree with the advice above about waiting out the Discover pre-qual. I think they'll offer an unsecured card sooner than later even if you make no other moves in the meantime. I'm not that knowledgable about Discover's graduation. But seems that graduating at a point between seven and twelve months is common. There'd be a lot of information around here if you search this forum.

 

My suggestion would be to check with SEFCU. The fact that you've been with them for a while may position you for something that's better than either the Capital One Platinum or Discover Secured.

Message 14 of 16
Anonymous
Not applicable

Re: Cap One Sec CLI Questions and Advisement

@HeavenOhio 

 

Applied for the Cap One Platinum.
CL $300 😒. You were definitely correct telling me it was going to be a low limit card.


My Cap One Secured CL is $550 ($99 secured deposit + $50 addl secured deposit + $100 unsecured + $300 6mo credit step).

 

Couple questions on some behaviors / game plan going forward.

 

1) Should I expect a similar CLI of ~$300 at 6 months on the Plat? (as it features credit steps)

 

2) Regarding usage, two part question 

- I normally do 2-3 charges a month on my secured utilizing up to 50% of the CL. I normally pay it off immediately after the charge posts so they haven't dinged me on the util %. Should I bump up my usage dramatically ?

-Must I do this on both the secured and unsecured, or is it best to focus most of the usage on the unsecured plat 

 

3) What the best game plan be looking ahead beyond 6 months+?

 

-Keep looking into discovers pre-qualify to see if I can get an unsecured product, or do you think it's best to just eat the inquiry going to 3 total and go for Disc secured now?

 

-Attempting to manually request CLI to grow the CL of the plat over time?

 

-Will capital one pre qualify tool do anything for me beyond this point? The tool says it only qualifies for 3 products period: Platinum, QS, and Secured.

 

I discovered Cap One "product upgrade" link, do you think this should be something I should check occasionally as well?

 

I'm really trying to be able to grow to some type of unsecured product that has a CL of at least $2K so I don't have to micromanage so much for utilization.

 

 

Message 15 of 16
HeavenOhio
Senior Contributor

Re: Cap One Sec CLI Questions and Advisement

@Anonymous, congratulations on the new card. Smiley Happy

 

The good news is that your new card will probably get a small CLI at the six-month point. When it becomes three months old, you can start requesting CLIs once a month as long as you don't get your hopes up. People used to report being able to get an additional CLI in that three- to six-month range, but that seems to be happening less often lately. If you do see success, that wouldn't affect your six-month CLI. However, starting with the six-month CLI, you won't see limit increase offers any more often than once every six months.

 

The bad news is that this card probably won't grow my much, although there have been exceptions. Capital One cards issued with very low limits tend to be stuck in "starter buckets," and limits likely won't grow past $750 or so. If you happen to be one of the lucky ones whose limit increases to $1,000 or more, the chance that the card will continue to grow improves significantly. The general recipe for increasing Capital One limits is to spend and pay in full. However, as mentioned, spending may not help much on a starter card.

 

Start checking the upgrade link when your card is about three months old. A lot of people see offers to upgrade to a full Quicksilver at about the four-month point. The chances of this happening sooner or later are excellent. Usage habits don't seem to contribute a lot when it comes to generating a Platinum-to-Quicksilver upgrade offer. If you hit four or five months and you're not seeing an upgrade offer via the link, call in or chat. Sometimes, the link misses things.

 

With the new Platinum, use the card as much as you'd like as long as you never exceed the limit. Pay as often as you need to in order to keep credit available. Curtail use on this card as the statement approaches. You want to the statement to cut with a balance between $5 and $86 (28.9% of the card's limit).

 

I'd suggest using the secured card once a month then paying that balance as soon as the charge posts. The goal would be to show usage and to generate a statement balance of zero. If you want to use the card more, that's fine too. Just make it a goal that the statement balance is zero. If the statement dates on your two cards are staggered, you can use this card for charges while your Platinum is "resting."

 

The reason for controlling your balances in this fashion is so the utilization portion of your score will be optimized in case the opportunity for a new card comes up. FICO likes it when one card reports a small balance with the rest of one's cards reporting zero. Captial One cards report the statement balances soon after the statement is issued.

 

If your best laid plans for controlling your statement balances mess up from time to time, it's not a big deal. Report your desired balances the next month, and your points will come back. Once your score grows, you won't need to be so meticulous about your balances. What you're seeking right now is a good "look" in case you want to apply for something.

 

Definitely keep checking the Discover pre-qual tool. Also, give your credit union a call. They might surprise you. You have room for two more cards over the next few months. Card number five should wait until your secured card reaches 25 months in age.

 

With Discover and the credit union, I don't think timing is all that critical, i.e. I don't think waiting to act on an opportunity is a big deal. With some banks, we'd suggesting waiting three months, six months, or whatever since your last app. Capital One is one of those banks, but you took care of them by applying for them first. Smiley Happy

Message 16 of 16
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