Approved for a $300 CL with Capital One

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forrestst
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Approved for a $300 CL with Capital One

Postby forrestst » Tue Sep 20, 2016 1:40 am

I was just approved for a Capital One Platinum card with a CL of $300. I have to admit the toy CL Is a bit embarrassing but there's no AF and they didn't ask for a security deposit so I guess I'll take it. It's got to be better than most store cards since it's a major card that can be used almost anywhere I shop. The downside of the low CL is I'll have to pay it off several times a month but those are the breaks.

I currently have a secured card from the First National Bank of Omaha with a CL of $300 which is a Visa and this is a MasterCard so I have both now. I suppose I'll just wait 6 months to a year and see where both cards take me. I've heard that Capital One sometimes start you with a low CL and then gives a CLI in 6 months or so with a good payment history, I guess I'll find out.

I hope I didn't make a mistake, I just don't know what else I'd apply for right now. I was going to get a second secured card, but I got this without a security deposit so now I don't see any point in tying up more funds on a secured card. I also don't see any point in a store card. The only thing I could see is maybe getting a Barclay Card in 6 months or so but I want to see what these two cards do first.

Any suggestions on what I should be looking at next and how long I should wait?


ingramjuan
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Re: Approved for a $300 CL with Capital One

Postby ingramjuan » Tue Sep 20, 2016 3:34 pm

forrestst wrote:Any suggestions on what I should be looking at next and how long I should wait?


Based on my experience, as i started out with capital one with a CL of $600 or lower when i was building my credit. I would suggest don't apply for anything for the next 9 to 12 months as you don't want a lot of inquiries hitting your report. Your CL will increase without you doing anything other than paying on time.
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Capital One Platinum (2001) |Capital One QuickSilver World (2002) | Amex Gold Delta (2013) | Best Buy Visa (2013) |Discover It (2015) | Amex Platinum (2015)

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CarefulBuilder14
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Re: Approved for a $300 CL with Capital One

Postby CarefulBuilder14 » Wed Sep 21, 2016 12:26 am

forrestst wrote:I was just approved for a Capital One Platinum card with a CL of $300. I have to admit the toy CL Is a bit embarrassing but there's no AF and they didn't ask for a security deposit so I guess I'll take it. It's got to be better than most store cards since it's a major card that can be used almost anywhere I shop. The downside of the low CL is I'll have to pay it off several times a month but those are the breaks.

I currently have a secured card from the First National Bank of Omaha with a CL of $300 which is a Visa and this is a MasterCard so I have both now. I suppose I'll just wait 6 months to a year and see where both cards take me. I've heard that Capital One sometimes start you with a low CL and then gives a CLI in 6 months or so with a good payment history, I guess I'll find out.

I hope I didn't make a mistake, I just don't know what else I'd apply for right now. I was going to get a second secured card, but I got this without a security deposit so now I don't see any point in tying up more funds on a secured card. I also don't see any point in a store card. The only thing I could see is maybe getting a Barclay Card in 6 months or so but I want to see what these two cards do first.

Any suggestions on what I should be looking at next and how long I should wait?

A $300 SL is not fun. Still, it's a little bit more history.

Whatever you get next, I suggest going for something with rewards.

As to whether getting a Capital One Platinum was a mistake, that's up for debate. Personally, I would call it a mistake (but a small one). With the secured Discover I mentioned in your other thread, you could be earning rewards. The interest you'd be giving up on $300 per year on a security deposit is about $3. You'd earn that much back in rewards very quickly, and most likely get your deposit back in a year. Then you'd have a year of history on a card that remains useful.

Maybe you'll be able to eventually product change (convert) your FNBO or Cap One cards into something with rewards. FNBO can, at least, eventually unsecure after at least 11 months.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
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forrestst
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Re: Approved for a $300 CL with Capital One

Postby forrestst » Wed Sep 21, 2016 8:49 am

I asked this on another forum and they basically said I should just cancel the Cap 1 card. What they said was that the 2nd card wouldn't help my credit that much and a platinum card with no rewards wasn't that useful. Honestly, I have no idea why I applied for the card. What I really don't understand is why anyone would ever apply for some of the most useless cards out there. Years ago Sam's Club got me with their line, if you open a store card, then your credit card is also your membership card which you are required to have to shop in the store anyway. For the convenience of not having to swipe 2 cards you get another separate bill to pay. What got me is I let my membership lapse and they closed my store credit card. One of the guys that I work with just applied for a WalMart credit card because they offered him a free 2 liter soda if he applied. My parents fell trap when they opened an account at Wells Fargo and before they realized what happened, they applied for a platinum credit card. They've had the card for years and would rather use it than a MasterCard with rewards because it's a Visa card. Needless to say, my dad had a fit over me applying for the Cap 1 card because it's a MasterCard.

Last year I saved money on a prepaid card and used it for Christmas shopping, that way i didn't spend money that I couldn't afford to spend. Several stores tried to pressure me into taking their store card but amazingly my prepaid card worked fine at every one of those stores. Most of the stores around here, I don't buy enough at to justify a store specific card. This year its going to be rough but I can risk getting another hard pull for something that isn't very useful. Save the hard pulls for something with decent rewards later. Easier said than done since a few days ago I said I'd never apply for a Cap 1 card.

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CarefulBuilder14
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Re: Approved for a $300 CL with Capital One

Postby CarefulBuilder14 » Wed Sep 21, 2016 10:37 am

forrestst wrote:My parents fell trap when they opened an account at Wells Fargo and before they realized what happened, they applied for a platinum credit card. They've had the card for years and would rather use it than a MasterCard with rewards because it's a Visa card. Needless to say, my dad had a fit over me applying for the Cap 1 card because it's a MasterCard.

Why does your dad think Visa is necessarily better than MC? There are good and bad cards in each network.
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Letting new accounts cool off since May
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forrestst
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Re: Approved for a $300 CL with Capital One

Postby forrestst » Wed Sep 21, 2016 10:59 am

My parents preach one credit card and only one credit card and it needs to be a Visa card. This is what they taught me about credit.

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Vattené
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Re: Approved for a $300 CL with Capital One

Postby Vattené » Thu Sep 22, 2016 3:30 pm

I've heard of people being loyal to Amex (based on the cards offered and the rewards/perks/prestige associated with them more than the actual payment network), but never Visa or MC. Some recommend having either a Visa or a MC just because network acceptance is better, but I've not heard of anyone even having a preference among the two. Maybe this is a regional thing, but at least where I am they are pretty interchangeable, at least acceptance-wise. Any idea why they are so loyal to Visa?

More than one credit card actually helps your credit, all else being equal. If they're coming from the perspective of "more credit or more credit cards will encourage one to spend more than they otherwise would and is more difficult to manage" then I completely agree with the sentiment. You shouldn't let credit cards impact your spending, and you should actively and responsibly manage what you have. Many of us here get into optimizing rewards, which can get complicated, but this should always be a secondary concern to those fundamental aspects of financial responsibility.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
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Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

kdm31091
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Re: Approved for a $300 CL with Capital One

Postby kdm31091 » Thu Sep 22, 2016 8:24 pm

I agree that there is no pressing need to worry about Visa vs Mastercard if you are in the US. They are interchangeable 99.9% of the time. So don't let the fact that it is a Mastercard bother you.

Kevin86475391
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Re: Approved for a $300 CL with Capital One

Postby Kevin86475391 » Thu Sep 22, 2016 8:44 pm

Vattené wrote:I've heard of people being loyal to Amex (based on the cards offered and the rewards/perks/prestige associated with them more than the actual payment network), but never Visa or MC.

Personally, I've never had any particular loyalty to Amex, Visa, or Mastercard, but I still consider myself fairly loyal to Discover...I mean I'm a rewards maximizer, so as loyal as I can be within reason. But hypothetically, Discover would be the last card I'd close and continues to be ranked as my #1 choice all else being equal.

Anyway, forrestst, I personally dislike Capital One, but I don't think you made a mistake opening the card. A hard pull really isn't that serious and you should see some benefit to your credit score from having a second card, even if it isn't a huge benefit. Are there better choices out there? Of course, but better unsecured choices you could get approved for with limited credit? Perhaps not. As CarefulBuilder pointed out, a deposit isn't always a very big deal either, but it does depend on your personal finances. I can certainly understand if you'd rather not tie up the funds or have to come up with it upfront.

Regarding credit limit increases, yes, I think you stand a good chance of automatically getting some. Capital One has a program they call "Credit Steps" that automatically gives increases on, I think the 3rd and 6th statement as long as you make on-time payments each month. I'm not sure if it applies to all their cards, but I think it does. Forgive me if I'm wrong, I haven't had Capital One for years, and it was long before their Credit Steps program, but I *think* this is correct.

I believe you can also potentially get a SP (soft pull) increase in addition to the automatic Credit Steps increases by requesting one after your 3-month increase and before your 6-month increase. Again, I may be off a bit on this info since I don't have first hand experience, but I think this is right.

All that aside, in general you can potentially receive SP Capital One CLIs every 6 months just be making requests online. You'll also potentially be able to PC (product change) your Platinum account to a rewards account like the QuickSilver1 or even a no-fee rewards account like the QuickSilver. But when and if you qualify for these upgrades is very much a YMMV (your mileage may vary) type thing. So stay optimistic, but don't hold your breath.

Anyway, congrats on your progress and keep us posted!

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Vattené
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Re: Approved for a $300 CL with Capital One

Postby Vattené » Fri Sep 23, 2016 5:04 pm

Kevin86475391 wrote:Personally, I've never had any particular loyalty to Amex, Visa, or Mastercard, but I still consider myself fairly loyal to Discover...I mean I'm a rewards maximizer, so as loyal as I can be within reason. But hypothetically, Discover would be the last card I'd close and continues to be ranked as my #1 choice all else being equal.

I feel the same way about Discover. I'm perfectly happy with Amex (I love that they let you set rules for automatic tagging and send receipts to attach them to specific transactions on their website - I wish Discover would copy that!), but if I had to pick one credit card issuer it would be Discover.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now



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