@dfwxjer escribió:
@ptatohed wrote:
@dfwxjer wrote:My advice is proven to work. I've helped numerous people using the exact path I detailed out, and within 4-6 months their profile is strong enough to apply for prime cards with higher limits. My plan is not intended to 10-20x CLI his current cards. A bucketed Cap1 card won't grow to a worthwhile limit so there's no reason to power cycle it throughout the month. The Chase card will grow with time, and organic CLIs will come along the way. The path I laid out will help the OP obtain prime cards with much better SLs.
I think the benefit of obtaining prime cards with healthy SLs is worth the slight risk of using a debit card for 4-6 months. If this is a paralyzing fear then sign up for a secured card by putting up a significant deposit. BofA is one of the better ones for this route.
dfw, I'm kinda with PAP on this one too. I didn't really understand any benefits to your advice. First sentence regarding the tank of gas - are you saying to carry a balance and pay interest? I don't think anyone has to ever pay interest to improve their credit score. And why use a debit card? Unless OP is carrying balances and paying interest and attempting to pay down those balances, there is no reason not to use credit cards for purchases (I'm assuming the OP PIFs, they didn't say otherwise). Why would using his current credit cards "just delay your progress and cause frustration"? Sorry, I just don't get it!
I always use "tank of gas" for the arbitrary charge I'm talking about... but essentially I mean let a small balance report on one of the cards that won't exceed 10% of the current credit limit. Then once the statement cuts, pay off the entire balance in full. I'd never advocate for paying interest in any scenario.
The benefit of my plan is to build the OP's credit profile without putzing around with beginner cards with low limits. Like I said in my initial post here, the cards the OP currently holds are not daily driver cards with limits high enough to run an entire month's worth of expenses through. Credit cycling is a hassle and can even lead to accounts being flagged for this behavior. Banks don't like to see the card maxed out, paid off, and maxed out again in a single billing cycle. The system does not account for the increased swipe fees, and only focuses on the cardholder running more through the card than their underwriting system approved it for.
The Chase card is the only one out of the 3 that will grow and build a relationship with a worthwhile bank. However, the OP is looking for bigger limits sooner than later, so I spelled out a disciplined plan to obtain prime cards, not putzing around with asking for CLIs on low limit starter cards. PayPal/Synchrony and a bucketed Cap1 card aren't worth dealing with at all imo.
in short, my focus is on getting the OP in to a prime card with a high SL in the shortest most efficient way possible. Low limit cards aren't worth the effort most of the time.
I am not recommending "power cycling", at all. I am just saying that normal spend on a low-limit card is not the target of those issuer policies that frown upon cycling.
Please, help me understand why you believe that there is a desirable result that you will get from spending almost exclusively on debit and abstaining from using the credit cards at all, so that they post a zero balance, that you would not get from using the cards normally and paying them down to zero right before the statement close date, so that they post a zero balance.
@PayAndProsper wrote:
@dfwxjer escribió:
@ptatohed wrote:
@dfwxjer wrote:My advice is proven to work. I've helped numerous people using the exact path I detailed out, and within 4-6 months their profile is strong enough to apply for prime cards with higher limits. My plan is not intended to 10-20x CLI his current cards. A bucketed Cap1 card won't grow to a worthwhile limit so there's no reason to power cycle it throughout the month. The Chase card will grow with time, and organic CLIs will come along the way. The path I laid out will help the OP obtain prime cards with much better SLs.
I think the benefit of obtaining prime cards with healthy SLs is worth the slight risk of using a debit card for 4-6 months. If this is a paralyzing fear then sign up for a secured card by putting up a significant deposit. BofA is one of the better ones for this route.
dfw, I'm kinda with PAP on this one too. I didn't really understand any benefits to your advice. First sentence regarding the tank of gas - are you saying to carry a balance and pay interest? I don't think anyone has to ever pay interest to improve their credit score. And why use a debit card? Unless OP is carrying balances and paying interest and attempting to pay down those balances, there is no reason not to use credit cards for purchases (I'm assuming the OP PIFs, they didn't say otherwise). Why would using his current credit cards "just delay your progress and cause frustration"? Sorry, I just don't get it!
I always use "tank of gas" for the arbitrary charge I'm talking about... but essentially I mean let a small balance report on one of the cards that won't exceed 10% of the current credit limit. Then once the statement cuts, pay off the entire balance in full. I'd never advocate for paying interest in any scenario.
The benefit of my plan is to build the OP's credit profile without putzing around with beginner cards with low limits. Like I said in my initial post here, the cards the OP currently holds are not daily driver cards with limits high enough to run an entire month's worth of expenses through. Credit cycling is a hassle and can even lead to accounts being flagged for this behavior. Banks don't like to see the card maxed out, paid off, and maxed out again in a single billing cycle. The system does not account for the increased swipe fees, and only focuses on the cardholder running more through the card than their underwriting system approved it for.
The Chase card is the only one out of the 3 that will grow and build a relationship with a worthwhile bank. However, the OP is looking for bigger limits sooner than later, so I spelled out a disciplined plan to obtain prime cards, not putzing around with asking for CLIs on low limit starter cards. PayPal/Synchrony and a bucketed Cap1 card aren't worth dealing with at all imo.
in short, my focus is on getting the OP in to a prime card with a high SL in the shortest most efficient way possible. Low limit cards aren't worth the effort most of the time.
I am not recommending "power cycling", at all. I am just saying that normal spend on a low-limit card is not the target of those issuer policies that frown upon cycling.
Please, help me understand why you believe that there is a desirable result that you will get from spending almost exclusively on debit and abstaining from using the credit cards at all, so that they post a zero balance, that you would not get from using the cards normally and paying them down to zero right before the statement close date, so that they post a zero balance.
That way works too if the OP wants to manage low limit cards. I personally think cards with $300-1000 limits are a waste of time, which is why I wouldn't waste any energy trying to "grow" them when the only issue is a thin file. My goal would be to get to prime cards with higher SLs as fast as possible, so I'm recommending he just fatten the file up for 4-6 months without juggling low limit beginner cards. Patience is all that's needed, so to avoid any risk, I always advise use a debit card and to leave the beginner cards in a drawer. I'm not a fan of debit cards for people that have cards with proper limits.
What benefit is there to using a $300 credit limit card? If he was making large ticket purchases that needed purchase protection I could see where you're coming from, but that isn't happening on a $300 card. Please help me understand why you think one needs to even putz around with such a junk product. My wife and I spend more than that on dinner when we go out.
@dfwxjer escribió:
@PayAndProsper wrote:I am not recommending "power cycling", at all. I am just saying that normal spend on a low-limit card is not the target of those issuer policies that frown upon cycling.
Please, help me understand why you believe that there is a desirable result that you will get from spending almost exclusively on debit and abstaining from using the credit cards at all, so that they post a zero balance, that you would not get from using the cards normally and paying them down to zero right before the statement close date, so that they post a zero balance.
That way works too if the OP wants to manage low limit cards. I personally think cards with $300-1000 limits are a waste of time, which is why I wouldn't waste any energy trying to "grow" them when the only issue is a thin file. My goal would be to get to prime cards with higher SLs as fast as possible, so I'm recommending he just fatten the file up for 4-6 months without juggling low limit beginner cards. Patience is all that's needed, so to avoid any risk, I always advise use a debit card and to leave the beginner cards in a drawer. I'm not a fan of debit cards for people that have cards with proper limits.
What benefit is there to using a $300 credit limit card? If he was making large ticket purchases that needed purchase protection I could see where you're coming from, but that isn't happening on a $300 card. Please help me understand why you think one needs to even putz around with such a junk product. My wife and I spend more than that on dinner when we go out.
I can see a few reasons I would suggest that people use the lower-limit cards:
1) If they were issued lower-limit cards, their profile does not support higher limits, yet. Whether this be due to them needing to recover/rebuild or lacking the experience and needing to establish credit for the first time, just the simple practice of using the credit card responsibly can be psychologically helpful to avoid abusing the larger limits they will receive later. It can help to build good habits.
2) Using a credit card prevents the exposure of your checking account, and therefore, helps to protect your cashflow. If, somehow, your $300 "junk product" credit card is compromised, then the only exposure is $300 of the issuer's money and your cashflow is 100% unaffected while you deal with the situation. If your debit card is compromised, the money is being pulled directly from your checking account, and the entire balance within it is exposed. Even if you get the money reimbursed later, limited exposure is a benefit.
3) While the volume on a lower-interest card will be greatly reduced, in comparison, there are rewards programs associated with pushing money through credit cards that most debit cards do not offer. Nobody makes a fortune off of these rewards programs, anyway, but it is, objectively, a benefit as longas you are using the card as a transactor.
I understand that you may spend more than $300 on a dinner. Your financial situation may not be the same as everyone else's, though. There are surely people out there who are trying to stretch $300 on a month worth of groceries.
If you would rather put money on debit, that's fine. I was just expressing that there is no real benefit to doing so, score or profile-wise, when compared to just simply using the credit that is already there. The same thing you look to achieve doing that, can be achieved by using the credit cards and zeroing out before statement close, with the added benefit of being more secure by keeping the checking accounts out of the equation, in the case of compromised accounts.
Side note: a bucketed Capital One may, indeed, be a "the juice is not worth the squeeze" situation, but both the Chase and the Synchrony Paypal cards can most certainly grow to a respectable limit at a respectable clip with basic, normal use. I am not a fan of Synchrony, at all, but I wouldn't categorize them or Chase as junk products just because they start out small. A bit of patience, time, and good usage can take one a long way.
And on the case of Capital One, sometimes, they are one of the only major banks willing to extend unsecured credit to certain credit-seekers, at all. The bucketing can be a pain, but it is not like that does not happen, for a reason. I cannot see myself recommending them, personally, though, in the beginning.
@dfwxjer wrote:
@PayAndProsper wrote:
@dfwxjer escribió:
@PayAndProsper wrote:I am not recommending "power cycling", at all. I am just saying that normal spend on a low-limit card is not the targ...
the month which is why I offered the specific advice I did. This isn't a generic game plan to fit every scenario so I'm not understanding why you're referencing low income people that stretch their grocery budget.
The debit fraud exposure is limited to what he keeps in his checking account. I never keep more than necessary in a checking account, and I would advise the OP to do the same. I don't know why anyone would keep more than necessary in a checking account.
There's no benefit to using debit, other than I hate junk $300 cards because they're a waste of time. I tell people new to credit to do that so they don't mess up their progress in this streamlined approach. I said in my earlier post that the Chase card is worth keeping because it will grow... at the very least it will build the relationship with them even if the specific card doesn't grow super fast. For someone new to credit, whe .....
I keep tens and tens and tens of thousands in my primis HYCA (4.4%, I think?). 
@ptatohed wrote:
@dfwxjer wrote:
@PayAndProsper wrote:
@dfwxjer escribió:
@PayAndProsper wrote:I am not recommending "power cycling", at all. I am just saying that normal spend on a low-limit card is not the targ...
the month which is why I offered the specific advice I did. This isn't a generic game plan to fit every scenario so I'm not understanding why you're referencing low income people that stretch their grocery budget.
The debit fraud exposure is limited to what he keeps in his checking account. I never keep more than necessary in a checking account, and I would advise the OP to do the same. I don't know why anyone would keep more than necessary in a checking account.
There's no benefit to using debit, other than I hate junk $300 cards because they're a waste of time. I tell people new to credit to do that so they don't mess up their progress in this streamlined approach. I said in my earlier post that the Chase card is worth keeping because it will grow... at the very least it will build the relationship with them even if the specific card doesn't grow super fast. For someone new to credit, whe .....
I keep tens and tens and tens of thousands in my primis HYCA (4.4%, I think?).
well dang, that's a pretty wild rate for a checking account. Are you pretty happy with them? We currently use Ally for most of our checking/savings needs but if there's a better option...
@dfwxjer wrote:
@ptatohed wrote:
@dfwxjer wrote:
@PayAndProsper wrote:
@dfwxjer escribió:
@PayAndProsper wrote:I am not recommending "power cycling", at all. I am just saying that normal spend on a low-limit card is not the targ...
the month which is why I offered the specific advice I did. This isn't a generic game plan to fit every scenario so I'm not understanding why you're referencing low income people that stretch their grocery budget.
The debit fraud exposure is limited to what he keeps in his checking account. I never keep more than necessary in a checking account, and I would advise the OP to do the same. I don't know why anyone would keep more than necessary in a checking account.
There's no benefit to using debit, other than I hate junk $300 cards because they're a waste of time. I tell people new to credit to do that so they don't mess up their progress in this streamlined approach. I said in my earlier post that the Chase card is worth keeping because it will grow... at the very least it will build the relationship with them even if the specific card doesn't grow super fast. For someone new to credit, whe .....
I keep tens and tens and tens of thousands in my primis HYCA (4.4%, I think?).
well dang, that's a pretty wild rate for a checking account. Are you pretty happy with them? We currently use Ally for most of our checking/savings needs but if there's a better option...
I have been incredibly happy with them. I've had the HYCA for about a year. Coincidentally, just today, they called me because I contacted customer service about applying for their $0.50/transaction checking / debit card (Perks checking). All I saw was an application for new customers but I am an existing customer and I wanted my two checking accounts linked. So they sent me some forms to fill out and, after opened, the two accounts should be linked (I haven't filled out the forms yet). But, yeah, I love just keeping more than enough money than your monthly auto pay bills are and not worrying about the 'extra money' rotting at 0.01%. Free checks. Free ATM (reimbursement). Good customer service. Bye bye Chase :wave:
@jackhughes wrote:Hey guys!
I started my credit jouney on a AU chase freedom unlimited in July 2023 so now 1yr and 9months old which had a small credit limit of $500 which allowed to me to open my own freedom unlimited in December 2023 which started with 500$ and now has a $1000 from a credit limit increase and I also have a Capital One Quicksilver One card with only a $500 credit limit which i started from $300 and my most recent card is a PayPal Cashback Mastercard with $1,700 which im really happy with but currently has a disputed transaction on due to a company refusing to refund me. I also have a 730 credit score.
The problem is I max out these credit cards literally every month or close to it because the credit limit is way to low and chase and capital one all say I dont qualify for a credit limit increase which to me is ridiculous considering my income and use and the money i hold in both banks seperately.
I feel like i've hit a deadend and kind of stuck in my situation now and looking for some advice what I should do to proceed in my credit journey!!
Another weird side note my own personal chase freedom unlimited has stopped being reported too all major credit bureaus in July last year but the card still works and is in good standing.
Hard pulls:
Equifax: 7 all expire by Decemeber this yearTransunion: 14 same thing expire by decemeber other than 1 due to paypal hard pull
Experian: 6 all expire by December this year too
I think hard pulls are currently ruining my credit too but obviously i was very unexperienced and was applying to the best cards obviously i didnt qualify for
I would advise you to
1. Make sure only one of your three cards reports a balance each month.
2. Make sure the balance it reports is below 28%.
3. Stop applying for new cards.
