Someone explain how cap one likes heavy usage with a low limit

[jason0618]

So, I’m rebuilding. Discover secured, a capital one platinum and an old j crew card I’ve had since 2015 and not used, but just found is miraculously still open, despite not being used since 2015.
So all three have crappy limits. $200 on discover, $250 on jcrew and $300 for the cap one card.cap one likes heavy usage, ok. I’ve read that, but how can I heavily use a $300 limit? If I keep it under 10% usage, I can’t even fill my gas tank. If I max it out and pay it off every day or two, nothing still reports, so what’s the benefit there? Should I pay my electric bill, then pay off. Then pay water bill and pay off, then pay car insurance, then pay off... would be a lot easier if I could just put it all on s card and make one payment a month to pay off, but I guess that’s probably the end goal. I’m just a little confused on the best way to do this.
Currently at $0 on cap one, $11 on J.crew (just wanted to make sure it was truly still open) and $160/$200 on discover, which I’ll pay off in the next couple of days.

[Brian_Earl_Spilner]

They keep internal records. If you cycle it 10 times in a month and let it report $0, they still know you spent $3000 in the month.

[Anonymous]

if you put a lot of spend thru that card and keep paying it down it shows you are actively managing the limit and are responsible. they want to see you aren't maxing out the card, they want to see you aren't carrying a balance and making just the minimum payments on the card. once you appear to be responsible and trustworthy then you will be given access to higher limits. it can take 6mo or more for them to see how responsible you are. if you have no bad marks on your credit your score will go up very very very fast from doing this.

[AllZero]

The key is reported utilization. When it's near the close / last statement date, make sure your utilization % is where you want it to be so you aren't showing maxed out.

As mentioned up thread, use the card, pay it down to free up limit, repeat. They keep trended data.

[Traveler101]

They love heavy usage. Every 6 months, you can do a soft pull cli. In the 3 months prior to hitting the 6 month mark, keep doing what you are doing then request the credit limit increase button, its a soft pull. At the time I started with 300.00 with scores simular to yours. Doing just you are doing I raised that card to 5900 and an additional card a few years later, with beginning cl 15k now 24k. Second card much better rate. Use, pay, use pay 3 months prior to 6 months. You will get your bumps

[BallBounces]

I am going to be a voice of minor dissent (or reason?) here.

Although Capital One and other lenders certainly keep spend records and trended data as described above, the "spend and pay multiple times per month  behaviour" is not normal, typical, nor expected.  It is also not central to whether one will get a credit line increase at some point in the future.

I am not saying you should or should not use a credit card in this way.  But it is my opinion that the benefit of this recommended spending type is certainly over stated, and is definitely not what a credit card issuer is "lookign for" or "likes"  from their customers, whatever those terms mean. 

Your credit line is represenative of the level of tolerance of your risk to the lender.  It is not a measure of how much the lender thinks you have available to spend.

[FireMedic1]

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@Anonymous wrote:

if you put a lot of spend thru that card and keep paying it down it shows you are actively managing the limit and are responsible. they want to see you aren't maxing out the card, they want to see you aren't carrying a balance and making just the minimum payments on the card. once you appear to be responsible and trustworthy then you will be given access to higher limits. it can take 6mo or more for them to see how responsible you are. if you have no bad marks on your credit your score will go up very very very fast from doing this.

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You can max out the card as many times as you want in a billing cycle. Without going over the limit. As long as its being paid down. Its whats reported that matters. And they like PIF if its a starter card.

[Traveler101]

In the faq of capital one, why a credit limit increase could be denied, it gives a spreadsheet on reasons. One of their reasons as to why it may be denied, lack of spend.

[FireMedic1]

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@Traveler101 wrote:
In the faq of capital one, why a credit limit increase could be denied, it gives a spreadsheet on reasons. One of their reasons as to why it may be denied, lack of spend.

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Yep. Thats why we say use the hell out of it. Just let it report a small balance. $10 would be fine.

[Traveler101]

EXACTLY! Show them you can make the payments and be responsible. Then take a sp cli every 6 months.