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New to the forum- Generic Credit Card Questions

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New to the forum- Generic Credit Card Questions

I appreciate any feedback

 

After many agonizing years, I have finally put myself in a comfortable financial position. Great paying job, and finally feel like I have my credit situation under control. In the last 2 years alone I have risen from roughly a 550 score and for the first time ever last month I eclipsed 700. As i look to the near future, I am looking for some guidance in regards to my credit card situation to see what is the best for my situation. 

 

Years ago I essentially took whatever I could get as far as credit cards. I was able to get a DiscoverIt, Capital One Quicksilver and Capital One Platinum. All 3 with minimum limits under $1k. I recently got an offer from my bank and was able to acquire a new card with a $9k limit, my first big boy card...which brings me to 4 cards total. In the last month, my Discover automatically increased to $4k....so those alone I am happy with. My issue comes with the two Capital One cards. Both limits are hovering around $1k, and i just recently paid both off so they have a 0 balance. 

 

My question is, is it necessary to have both Cap1 accounts open? Seems anytime i request a credit line increase they give me $100, and i can't request again for 6 months. I know having open credit is good, but I"m looking for much higher limits to satisfy my long term financial needs. Do you guys think with a 700 score it would make sense to apply for a brand new card with Cap1 or elsewhere and pray for a much higher limit (and close to the 2 low limit accounts)? Or should i hope for Cap 1 to increase my current limits and keep those accounts open. 

 

Any feedback is appreciated. 

12 REPLIES 12
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Regular Contributor

Re: New to the forum- Generic Credit Card Questions

I'm not sure about anyone else, but I find Capital One is tightening their ropes a bit and becoming more conservative in how they practice lending. Discover as you found is generally more generous with their CL and I wouldn't compare their generosity to other lenders honestly.

 

I would say branch out from Cap 1 and try other lenders if you find a card with certain benefits you want.





Message 2 of 13
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New Visitor

Re: New to the forum- Generic Credit Card Questions

Seems to be that way. I recently called in to essentially "threaten" taking my business elsewhere and she was very stern on the fact the increases are 100 percent system-based...there is nothing they can do. 

May be worth the hard inquiries to see what else is out there

Message 3 of 13
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New Member

Re: New to the forum- Generic Credit Card Questions

It's probably wise to keep the Cap One accts just to keep your AoA as high as possible.  Just charge something every couple of months just to keep them active.  I went through a similar situation as you a few years back, and I found the two cards that increased my CL the fastest were Amex and PayPal(Synchrony).  I use them for both personal and business purchases, so I was purchasing close to my limits, but paying them off prior to statement closing.  Obviously, banks have tightened up lately, but I've had a 2K increase from Synchrony and 1.5K from Amex in the past few months.  Synchrony does not have a great rep here, and I would tend to defer to more knowledgeable people, but I've had great luck with them.

 

Message 4 of 13
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Re: New to the forum- Generic Credit Card Questions


@jonblaze24 wrote:

Seems to be that way. I recently called in to essentially "threaten" taking my business elsewhere and she was very stern on the fact the increases are 100 percent system-based...there is nothing they can do. 

May be worth the hard inquiries to see what else is out there


Not surprised Cap 1 when I asked to close my old secured card I had with them just basically shrugged and said okay. Other lenders might try offering things to convince you to say but they don't seem to concern them that much with retaining people.

 

That said still don't close them since it will likely hurt your credit profile being that is basically 50% of your profile at the moment





Message 5 of 13
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Re: New to the forum- Generic Credit Card Questions

@jonblaze24 Welcome to the forum! Great job building your credit up. I am by no means an expert, and I defer to the others on here.

 

It can be hard to grow Cap One cards (especially recently, folks have been mentioning receiving $100 credit limit increases). Some people have been able to however with heavy use.

 

I wouldn't close your Cap One cards just yet. There is always a chance Cap One will allow combining limits again in the future. Also 3 cards are recommended for building up your score.

 

Once you have replacement cards it will be cool to close one or both cards (I would keep one open). Closed accounts count towards your average age of accounts (AAoA) for up to 10 years.

 

If you have a way in with Navy FCU (has military affiliation requirement either for yourself or family members), they could be a good option.

 

Penfed is another highly recommended credit union (doesn't require military affiliation).

 

You might also look to Amex and Chase (both have prequal pages).

 

Good luck!

Message 6 of 13
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Established Contributor

Re: New to the forum- Generic Credit Card Questions

If I were in your position, I would also be looking at chopping the Capital One cards, but that's b/c I like to keep my number of open accounts slim.  Cap1 can be a very tight lender when it comes to CLIs and, since your SLs on both cards were < $1k, they're likely bucketed and won't see much if any more growth.  1.5%+ CB is extremely easy to replicate in another card, so they're basically just low-limit chaff now.

 

However, if you don't have that preference, there are plenty of reasons to leave them open and inactive, as have been stated above.  Three to five cards is often considered an optimal number for scoring purposes, they add their current combined limits as a small amount of util padding, and the longer they're open the longer they ultimately contribute to your average account ages.  If you don't plan to be very aggressive w/ apping in the future that may not matter as much, but, if you do, then having that padding of 3 max aged accounts vs 1 may provide a nice anchor to your AAoA 10+ years from now.  They have no AF, so you can leave them open for as long as you feel like giving them maintenance swipes and monitoring them for fraud.

 

A 700 FICO8 shouldn't restrict you from better cards with other lenders, though depending on your overall profile you may not find all lenders open to you in the current climate.  When you say that you have a 700 score, is this a FICO or Vantage score?  If FICO, from which bureau and what are your scores at the other two, if you have access to them?  As mentioned above, Navy Federal could be a very good option for you if you qualify for membership.  Either your own military service or that of an immediate family member (including grandparents, living or deceased) would get you in.  The Amex prequal page would also be worth a check, to see whether you have any solid offers. 

 

Past that, you could come up with an ordered plan of apping attack:  1) research the cards that are available from the major lenders, 2) make an ordered list of maybe three that you like the most, 3) do forum searches on those lenders and cards for specific info to help judge apping odds, and 4) then apply in order until one bites (if one does).  Whether this would be prudent would depend on whether your 700 is a FICO, how close your other FICOs are to 700, and what else is in your profile.  690's-700's were kind of on the lower edge of where you might expect prime approvals before, and odds have probably decreased with lending tightening up most places.  But if you do it this way you shouldn't rack up too many HPs even if you get denials, and you could end up a good card to grow with you into the future.


Message 7 of 13
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Super Contributor

Re: New to the forum- Generic Credit Card Questions


@jonblaze24 wrote:

I appreciate any feedback

 

After many agonizing years, I have finally put myself in a comfortable financial position. Great paying job, and finally feel like I have my credit situation under control. In the last 2 years alone I have risen from roughly a 550 score and for the first time ever last month I eclipsed 700. As i look to the near future, I am looking for some guidance in regards to my credit card situation to see what is the best for my situation. 

 

Years ago I essentially took whatever I could get as far as credit cards. I was able to get a DiscoverIt, Capital One Quicksilver and Capital One Platinum. All 3 with minimum limits under $1k. I recently got an offer from my bank and was able to acquire a new card with a $9k limit, my first big boy card...which brings me to 4 cards total. In the last month, my Discover automatically increased to $4k....so those alone I am happy with. My issue comes with the two Capital One cards. Both limits are hovering around $1k, and i just recently paid both off so they have a 0 balance. 

 

My question is, is it necessary to have both Cap1 accounts open? Seems anytime i request a credit line increase they give me $100, and i can't request again for 6 months. I know having open credit is good, but I"m looking for much higher limits to satisfy my long term financial needs. Do you guys think with a 700 score it would make sense to apply for a brand new card with Cap1 or elsewhere and pray for a much higher limit (and close to the 2 low limit accounts)? Or should i hope for Cap 1 to increase my current limits and keep those accounts open. 

 

Any feedback is appreciated. 


I don't see any reason to dump the cards, but I wouldn't expand my footprint with Capital One either.  If you apply for another card, it should be somewhere else IMHO. Don't hope for anything from Capital One, they have changed and are not very good with CLI's any more.

 

The longer you wait to apply for a new card, the higher your scores will be, and the better the card and limit you will get.


Total revolving limits 653000 (575000 reporting)

Message 8 of 13
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Moderator

Re: New to the forum- Generic Credit Card Questions


@jonblaze24 wrote:

Seems to be that way. I recently called in to essentially "threaten" taking my business elsewhere and she was very stern on the fact the increases are 100 percent system-based...there is nothing they can do. 

May be worth the hard inquiries to see what else is out there


 

I don't see any particular reason to close those cards since there is no AF involved, unless you aren't using them and don't foresee using them in the future. It's totally up to you if you feel like managing extra cards.

You might be able to get better cards but that would heavily depend on negatives on your account etc.

Without knowing what's on your CR, it's hard to tell what your options are.

Since you just broke into 700s, I'd wait like @SouthJamaica  suggested. 

 

 

I just want to address "threatening to take your business elsewhere"... Don't say it unless you mean it,  they just might take you up on that offer. 

CSR you spoke with told you the truth, automated UW decides. There is nothing CSR can do about increases, but they sure can close accounts if one gives them impression that's what consumer is saying. 

 

Message 9 of 13
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Re: New to the forum- Generic Credit Card Questions


@Remedios wrote:

@jonblaze24 wrote:

Seems to be that way. I recently called in to essentially "threaten" taking my business elsewhere and she was very stern on the fact the increases are 100 percent system-based...there is nothing they can do. 

May be worth the hard inquiries to see what else is out there


 

I don't see any particular reason to close those cards since there is no AF involved, unless you aren't using them and don't foresee using them in the future. It's totally up to you if you feel like managing extra cards.

You might be able to get better cards but that would heavily depend on negatives on your account etc.

Without knowing what's on your CR, it's hard to tell what your options are.

Since you just broke into 700s, I'd wait like @SouthJamaica  suggested. 

 

 

I just want to address "threatening to take your business elsewhere"... Don't say it unless you mean it,  they just might take you up on that offer. 

CSR you spoke with told you the truth, automated UW decides. There is nothing CSR can do about increases, but they sure can close accounts if one gives them impression that's what consumer is saying. 

 


+1 - my personal experience backs this ^^^ up.

 

Years ago (2013-ish) I called Capital One about an old card with an annual fee I wasn't happy about, and I was hoping retention might be able to help with the fee. 

 

When the first CSR said she couldn't help with the AF, I told her I just wanted to close the account, expecting to be transferred to retention.  I heard a few seconds of fast typing, then she advised me, "Your account is closed effective today.  Please be sure to destroy your card along with any convenience checks you may have."  Smiley Surprised

 

It was OK since I wasn't happy with paying the AF again, but I was genuinely expecting to be "talked" into keeping the card.

 

TL;DR - Be careful with playing retention games especially with Capital One; with the right (wrong?) CSR you might find yourself amazed at how efficiently they can close an account.

Message 10 of 13
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