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I am eligible for a credit limit increase next month (6 months from my last one) and I was wondering if there is any benefit to not having a balance at the time it is requested. I have never been late and have always paid significantly more than the minimum. I have carried a small less than 30% balance at times. The card is at $2k limit right now. ANy insight or advice will be greatly appreciated.
If the card has not been paid to zero any time in the last 6 months, they’re likely going to deny the increase request or low ball you with $100 unless you’re in an intro period. Credit card companies do like earning interest but they know that consumers don’t pay interest unless they have to so carrying a balance tells them you’re at an elevated risk of default.
+1 Cap1 loves heavy usage and PIF each month for rebuilders to improve your chances for a CLI. That dont use more than 30% of your credit limit thats all over the internet isnt true. CCC's want to make money. The more you swipe the more they make.
Ok. The card has been paid to zero a couple of times in the last 6 months but it has not been consistently - I've actually carried a small balance on purpose because it is what I "thought" would help my score. So it sounds like you're saying to always pay in full...?
So do you think it will be helpful for me to pay this cycle down to zero before asking or is it too late? I don't have issues with paying or ability to pay. I have been trying to increase my score and it sounds like I may have been following the wrong advice. Any insight will help
@Anonymous wrote:So do you think it will be helpful for me to pay this cycle down to zero before asking or is it too late? I don't have issues with paying or ability to pay. I have been trying to increase my score and it sounds like I may have been following the wrong advice. Any insight will help
If you have been charging up and paying to $0 then what I said doesn’t apply. It’s people who carry large balances and never pay them to $0 that are risky.
What I can say is that Capital One has always given me my best increases right after a heavy spend cycle when I make my payment. My last CLI was $2000 in 3/2018 after I paid off the last of a purchase I had made in November 2017 in January and I had PIF for February and March.
Like @FireMedic1 says, Cap loves a lot of spend. If you have used the card heavily they are more likely to reward you with a decent CLI. Just beware that they aren’t known for CLI generosity as much as they are large limits on subsequent cards.
Just to add. You dont have to pay a couple times a month. Let that balance rise up. Then PIF. Multiple payments dont do much but cause more work for you. Good Luck on your next attempt at a CLI!