Raise a $200 limit on a secured card or leave it alone?

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shoptalk01
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Raise a $200 limit on a secured card or leave it alone?

Postby shoptalk01 » Fri Aug 24, 2012 4:24 am

Well, my secured Capital One card should be here possibly tomorrow or the next day and I just want to do a brief review. I talked to a financial advisor who knows alot about Capital One and doesn't have much good to say about them. He did say people have reported having credit line increases without additional deposits, but he said to get that you can't be over your credit limit even once or have a payment one day late. He also said the primary purpose of these accounts is to populate your credit report with open accounts in good standing, in other words, just having an open account with a $200 limit, charging a big mac from the clown once a month and sending the payment by the due date would boost my credit score.

The thing I'm running into, he advises against things like charging a tank of gas when my 24 gallon tank is empty. Putting the charge on there with a couple other little things could easily put my utilization at 75% or higher. I was kind of thinking use the card a couple times, pay from the website then keep checking for when payment posts to the account and use the card again, but he says it's playing with fire because if I don't know what I'm doing and mess up, I risk being reported for using 90% of my credit.

So now if I charge say $175 then send payment within a couple days, watch for it to post to my account then charge $50 within the same month, they won't nail me for using too much of my available credit will they? He said what they want to see in no more than 30% of my available credit being used, which would be $60. So by what he said, if the bill comes out to $65, I can't use my card to pay.

Also, is there any advantage to adding to my deposit? I thought about boosting it up a bit to $500, just to give myself a bigger cushion and because I know I wouldn't go over. I've heard that with a higher limit I might increase my chances of being approved for another card. Of course this will have to be built up by a couple hundred every few months until I'm around $1,000 or so. This isn't because I need that much credit but because I want to be able to get something unsecured with no annual fee in a year or so.

Has anyone ever tried to make an additional deposit to a Capital One card? Is it a difficult thing to do? There is a rumor someplace if I try to put $100 additional on my card, I will need to have Capital One on a conference call with my bank to verify I have the money in my account then I won't be able to use the card at all for 10 days.....is that true? I just need to review and make sure I don't screw up.


Crashem
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Postby Crashem » Fri Aug 24, 2012 9:07 am

Yes higher limit is good. Not so much that it helps you get approved. More than when you get approved, it will be for higher amount because existing cards are higher amount.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

shoptalk01
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Postby shoptalk01 » Fri Aug 24, 2012 9:40 am

I was kind of under the impression with most places if you didn't qualify for a $1,000 credit line you wouldn't be approved. What I've been hearing is the $200 credit line can help your credit score but does nothing to show lenders you can be responsible with large credit lines. I am a little afraid of the small credit line, I wasn't going to use the card much at first, but it looks like I might be stuck with this as my only card. I was advised not to apply for anything else for at least 3 to 6 months.

Crashem
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Postby Crashem » Fri Aug 24, 2012 10:12 am

They are right. Don't app until first card reports for 6 months. Also if you can spare money, increase that cl as high as possible. Once it reports new cl and six months are up, then app for unsecured cards. hopefully get unsecured at higher or similar cl. Then you cn cancel and get your money back.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

shoptalk01
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Location: Nebraska

Postby shoptalk01 » Sat Aug 25, 2012 6:16 am

I wish I would have found this sooner! I was looking at USAA and if you take out a 2-year CD with them, they will use it as a security deposit on a Mastercard or Amex. So here your deposit earns interest just as if you invested in a regular CD. I was planning on putting about $1,000 in a new local CD anyhow but the low interest doesn't seem to get me motivated much.

Now I'm torn between if I should try it, or just put the cash in a CD/savings without applying for a card. I was told I already have excessive inquiries on my credit report as it is, but then would one more really hurt anything?

I want to send Capital One at least another $300 to bring my limit up to $500 which makes it easier to use the card without the risk of getting a black mark with them. If it's going to be my main card, I'll try to get it pushed up to at least $1000 in 6 months. Still a better deal than putting money on prepaid cards and if you always pay on time without going over your credit limit, Captial One is know to increase your limit without additional deposits. You might tie up $600 to get a $1,200 line of credit which wouldn't be so real bad.



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