@Ej wrote:
So I’ve been building my credit for a while now from mid 500's score to now in the 640 range. My majority of cards of from capital one and like most my CLs with them aren’t that impressive. For clarity i just opened a savor card with a SL of $1000, i have a quicksilver card for good credit which was PC from a venture one with a limit of $2500, my oldest card is a quicksilver one with a limit of $2000 and i have a venture one which was PC from the old Walmart card with a $300 limit. now these aren’t my only CCs and my total Spending limit revolving my Ult is around $13,000 and only using around %15 of it. My question lies with this. I have two goals; one is to obviously get my credit score higher to be considered for Good credit which in turn will provide me with more access to better tiered cards. However, my second goal is to get my present cards to higher limits. And from my extensive research Capital One is very peculiar with increases. I’ve looked into many forums and found that if i carry a high balance, let it report and then pay it off as soon as it reports, then my limits should see an automatic increase from Capital one after a few months if not a month into doing this. But will it? Can anyone actually verify if this method is true? right now i maxed out my savor and venture cards, so the next statement balances should read as high Utl and then I plan on paying it off and continuing the process. but is it worth the hit on my Utl for my score, especially if it doesn’t work. Or should I play it safe, not let a high balance report and gradually wait for my credit score to rise and hope i get approved for let’s say a chase or AE card? any advice is welcome.
Side note, i also opened a PayPal world MasterCard and my SL was $1700. Getting this card will help keep my Utl low so if i do let the two balances report it should keep my Utl as is if that helps. Thanks again hope I made sense lol
It's been debated as to whether it's more beneficial to let a balance post, then PIF... Or, PIF before the statement cuts. Although utilization has no lasting effects, or memory on your scores, letting higher balances report will lower your scores. It is temporary in that once your reported utilization goes down, scores go right back up again.
However, on a new, thin, or rebuilding file, if you allow high balances to report repeatedly month after month, lets say around 70% consistently with one lender for example, that lender will know you're PIF every month. Your other lenders will only see that you "pays as agreed" there's always a chance that it spooks your other lenders enough to initiate adverse action. To them they're not seeing that you PIF, only small variances in your reported balance.
Most lenders, like to see good use, and experience with present credit limits of the cards they issue before they're willing to raise limits. I think Capital One and Discover are both known for using "not enough experience with current limit" reasons for CLI denials. When it comes to a lender you're already with and you're trying to get more out of them, it's just my belief that it doesn't matter if you let the balance report since they can see, and know what you're spending/paying.
For you, I'd recommend showing the cards you want to grow more love (spend), and PIF before the statements cut to keep your utilization low and your score up. Do this consistently for 3 to 4 months and see what happens. If you want to get all you can out of your scores, practice AZE0. The rest is all about letting time pass. The more time that passes, the longer history of on time payments and responsible use you'll have. In turn your scores will continue to go up, and the better cards/limits will come your way.
