I have read vastly different opinions on the matter.
I am trying to get my credit limit increased on my capital one card.
there's a large group of people out there that say the best way to get increases is to let your reported balance be very high(90%) when it posts. Because doing that proves the need for more credit. Apparently capital one is very fond of this? Obviously this is terrible for your credit score. But people say unless you are applying for new credit, it doesn't matter cause it can be fixed in a month.
then there's a large group of people who say responsible use and low reported balances are the best way to get increases cause it shows responsible credit habits and less risk.
so what is the actual deal?
If you want more credit you have to use the existing credit.
Balances do not matter for more than an instant in time pull, those that state it can be cleaned up next month are correct.
Low reported balances can show responsible use and tight finances, but low use isn't profitable for the banks.
End of the day if you want more credit you run as much of your life financially through it as possible. I'd suggest, and this is up for debate, that you still want to let a high balance report anyway so not only your specific creditor knows but every future one does too that you can spend and pay it back.
@Revelate wrote:If you want more credit you have to use the existing credit.
Balances do not matter for more than an instant in time pull, those that state it can be cleaned up next month are correct.
Low reported balances can show responsible use and tight finances, but low use isn't profitable for the banks.
End of the day if you want more credit you run as much of your life financially through it as possible. I'd suggest, and this is up for debate, that you still want to let a high balance report anyway so not only your specific creditor knows but every future one does too that you can spend and pay it back.
For your specific case, you typically need to show Capital One heavy usage. Run that baby up to the full limit if you want to and let it post. Note that Capital One uses an asset-backed securities business model and thus "buckets" accounts, so CLI success is largely going to come down to what bucket you are in. Accounts in high buckets can get $5K-10K CLIs in one shot, accounts in low buckets may only get $100 if anything. If you are showing 90%+ utilization and only getting 3 digit CLIs, it indicates low bucketing not worth further pursuit.
If low bucketed, the most successful strategy is to apply for the same card again at a later date when your credit profile is what Capital One likes best. Cards are bucketed, not people, so a person holding a $300 Savor One that just won't grow can apply for a new Savor One later and receive a whopping $20K SL or the such.
Running very high utilization will ding your scores, but as long as you are paying in full every month and not applying for a mortgage or car loan anytime soon, who cares? Building long term profile strength is worth a short term drop, plus letting large balances post shows other creditors that you could be profitable for them. All the creditworthiness in the world is useless if they don't think you'll make them any money.
EX VS3: 745, EQ VS3: 755, TU VS3: 753, VS4: 709
i think it affects Fico 8? the most.
So let me ask you this.
there are new models adopting trended data. Primarily FICO 10T (the T standing for trended). Vantage score 4 also uses trended data, but is much less widely used compared to FICO 10T
these scoring models heavily weight the past 6+ months of util ratio, not just the previous month. And these models are growing and more lenders are using them. In this case, I would be out of luck, because even if I pay down my balance the month before, the trended data will still heavily weigh the months leading up to that.
Don't worry about hypotheticals, worry about what's currently used. No credit card issuer I know of uses 10T yet and only a handful of credit unions or smaller banks and Synchrony use VS4. Synchrony is not exactly a selective bank, so your profile doesn't need to be shined up for them. FICO 8, 9, and their bankcard scores still comprise the vast majority of credit card pulls, so those are the ones to focus on for credit cards.
By the time mainstream big banks are using trended data models, you'll already be set.
I built up over $80k in TCL with Cap One over 3 cards starting with a single $3k QS.
My QS was my first rebuild card, then another QS, then another, the Savor, etc.
I used my cards for everything.
I paid WEEKLY. I did not nessessarly pay it off each week, just large chunks.
I asked for CLIs often. I got CLIs as high as $8k each.
I opened more Cap Ones cards and shut down existing cards that were stuck on limits below new SL on new cards.
New cards starting getting $10k SLs instead of $3k.
I combined 4 cards into 2 cards.
After a couple of years building, I got a Venture with $30k SL. I could not believe it!
Before switching usage to other cards, I had $25k on QS, $28k on Savor, and $30k on Venture.
After CLDs, I have $10k, $10k, and $30k (and $10k on Walmart).
To date, I have $0 AF on Savor and $59 AF on Venture.
Both were grandfathered in.
They also gave me a 2.49% 72 month car loan with $0 down.
All of this was with FICOs from 650-725.
Cap One can be very generous if you are loyal to them.
@SRT4kid93 wrote:I have read vastly different opinions on the matter.
I am trying to get my credit limit increased on my capital one card.
there's a large group of people out there that say the best way to get increases is to let your reported balance be very high(90%) when it posts. Because doing that proves the need for more credit. Apparently capital one is very fond of this? Obviously this is terrible for your credit score. But people say unless you are applying for new credit, it doesn't matter cause it can be fixed in a month.
then there's a large group of people who say responsible use and low reported balances are the best way to get increases cause it shows responsible credit habits and less risk.
so what is the actual deal?
The latter.
@SRT4kid93 wrote:I have read vastly different opinions on the matter.
I am trying to get my credit limit increased on my capital one card.
there's a large group of people out there that say the best way to get increases is to let your reported balance be very high(90%) when it posts. Because doing that proves the need for more credit. Apparently capital one is very fond of this? Obviously this is terrible for your credit score. But people say unless you are applying for new credit, it doesn't matter cause it can be fixed in a month.
then there's a large group of people who say responsible use and low reported balances are the best way to get increases cause it shows responsible credit habits and less risk.
so what is the actual deal?
what is the current limit of your capital one card?
what was your credit profile/starting limit when you opened the card?
