Maximizing toy limit cards?

Anonymous · ‎03-09-2016

Ok I have 2 secured cards, BofA limit $300 and Cap1 $351 limit. I can't get an unsecured card at this time due to having no score. My main goal right now is to generate scores and and to start with the best scores possible so that I can qualify for a decent card.

I only have the Cap1 secured to get me on the Fico radar. Beyond that it's useless in my eyes because there is no chance of it graduating. Should I still use this card daily? I want to concentrate on using the BofA daily and PIF every few days to keep my usage high on that card since it will graduate. It's just so aggravating trying to do this with both cards ALL the time since it's such small limits. Also can I charge up to say 80-90% as long as I PIF before statement cuts with no ill effects?

Anonymous · ‎03-09-2016

@Anonymous wrote:
Ok I have 2 secured cards, BofA limit $300 and Cap1 $351 limit. I can't get an unsecured card at this time due to having no score. My main goal right now is to generate scores and and to start with the best scores possible so that I can qualify for a decent card.

I only have the Cap1 secured to get me on the Fico radar. Beyond that it's useless in my eyes because there is no chance of it graduating. Thiis is true but (for me) I'd rather be on the good side of Cap1 because of the cards that could more quickly come your way. Should I still use this card daily? I would and do. I want to concentrate on using the BofA daily and PIF every few days to keep my usage high on that card since it will graduate. It's just so aggravating trying to do this with both cards ALL the time since it's such small limits. Also can I charge up to say 80-90% as long as I PIF before statement cuts with no ill effects?

Yes the BofA CC will graduat

Anonymous · ‎03-09-2016

Does it hurt or help to run the cards up to 80-90% as long as I PIF before statement?

takeshi74 · ‎03-09-2016

Do not rely solely on usage for CLI's. It is not just the account itself that matters for CLI's on the account. Your entire credit profile and your income will determine the limits and CLI's that you qualify for.

Just aim to keep revolving utilization under 30% generally. When applying for new credit or CLI's optimize it by dropping it and allowing only one balance to report if that would be of benefit to your credit profile. With low limits like that it can be very easy for high revolving utilization to report so I would advise optimizing when apping.

@Anonymous wrote:
Also can I charge up to say 80-90% as long as I PIF before statement cuts with no ill effects?

Any scoring model uses the data in a report to generate a score. Revolving utilization is determined based on balances and limits on your reports. It is the reported amounts that matter. You can use 100% if you want. Just be aware of what reports. While most cards report on statement date, not all do so make sure you're aware of the report dates for each of your accounts.

@Anonymous wrote:
Does it hurt or help to run the cards up to 80-90% as long as I PIF before statement?

Doesn't matter. Usage may help in some situations but you cannot rely on it alone. Credit profile and income will always matter. CLi's can come with usage but they can also come with no usage. I've had CLI's on several cards that have had little to no usage.

Anonymous · ‎03-09-2016

Right now I'm using both cards daily and paying every couple days to keep balances at zero and then leaving one card to report 9% or less.

I understand that card usage isn't the sole requirement for cli or limits. I have no score at all so this is the purpose of me getting cards and I want to understand how to maximize what I do have. It's just a pain to manage such small amounts constantly. I want to be able to get some decent cards so I can use them without thinking about it too much and pay monthly instead of twice a week.

BallBounces · ‎03-09-2016

@takeshi74 wrote:
Do not rely solely on usage for CLI's. It is not just the account itself that matters for CLI's on the account. Your entire credit profile and your income will determine the limits and CLI's that you qualify for.

I need to echo this for emphasis. Creditors do not expect that people with a card limit of $300 will run $1000 through it every month by making a bunch of payments. That is not expected behaviour. It is not what they are "looking for".

Creditors want an established history of responsible use and significant, on time payments. Letting an occasional balance report is "fine". But don't accrue interest, and don't feel as though you have to run more spend through a card than is reasonable. DO expect you will have to wait some period to establish a history and credit profile.

When the time comes where you will be seeking additional credit, there are tweaks to optimize short term scores ...but those tweaks become immaterial if you already practice good credit habits. For now, focus on the good habits.

050719:

021924:

FICO 08 scores listed and are stagnated until multiple derogatory items expire over the next two years.

BallBounces · ‎03-09-2016

@Anonymous wrote:
Right now I'm using both cards daily and paying every couple days to keep balances at zero and then leaving one card to report 9% or less.

I understand that card usage isn't the sole requirement for cli or limits. I have no score at all so this is the purpose of me getting cards and I want to understand how to maximize what I do have. It's just a pain to manage such small amounts constantly. I want to be able to get some decent cards so I can use them without thinking about it too much and pay monthly instead of twice a week.

So, you are doing it "right", but probably applying more effort than is needed. Use the card a few times each month, pay it off early and in full (other than the occasional sub 9% that you are aware of) ..... and wait.

Wilkd guess here, but in 6 months you will apply for, and receive, a Capital One Quicksilver One card with a CL higher than the cards you have.

050719:

021924:

FICO 08 scores listed and are stagnated until multiple derogatory items expire over the next two years.

EAJuggalo · ‎03-09-2016

How long have you had the Cap One secured? If it is more than two months I would probably go ahead and app for a QS1 right now. They approved me for two cards without having a FICO score.

EX700 TU 704 EQ 694 4/03/22
Cap1 QS-$4,500 Chase Freedom Flex- $800 Chase Freedom Unlimited- $1,000 Victoria's Secret- $1,200 Citi DC- $800 Amazon Store Card- $3,500 AMEX Hilton Honors-$1,000 Discover It-$1,000 Wal-Mart MC $290 Chase Sapphire Preferred-$5,000 NFCU Flagship $13,800 AMEX BCE-$1,000 AMEX Gold-$5,000 AMEX Delta Blue $1,000 Lowe's $5,000 Navy Platinum $17,000 AMEX BBP $2,000

Anonymous · ‎03-09-2016

The Cap1 secured is what got me back into the credit game early last year or late 2014, I can't remember.

Ultimately, they bumped it up to 550 on their own and it really won't go any higher, nor would they let me product change to something else. So that card is going to get closed.

With Cap1...I think your best bet is to app for the QS card and eventually look at shutting down the secured card if it won't terribly hurt your AAoA. Cap1 seemed very willing to approve a QS1 after only a few months of responsible secured card use.

Patience is a virtue in building/rebuilding but keeping utilization in check, spacing out app sprees, and generally being responsible wil definitely help you make leaps and bounds.

Good luck!

Anonymous · ‎03-09-2016

Yea I'm sure I'm way overthinking it, just my nature 😁

My cards are a little less than 2 months old. I check the prequalifier about once a week and nothing yet.

Is it true that if I have the secured Cap1 card, I can only get one other Cap1 product? And if so, should I cancel the secured card to make way for the better card?