- Platinum Member
- Posts: 85
- Joined: Fri Aug 16, 2013 8:01 pm
- Location: South USA
Low limits can definitely be used to make a credit score go up if used properly. To increase your score, you would want to make sure the utilization on your card is 30% or less. This would mean that you should ideally only spend a maximum of $150 each month on your card, even though you got a limit of $500. Capital One typically enrolls all their customers in a credit steps program that usually grants a 50% of original credit line increase. If you pay your bill on time for the first 5-7 months + use your card within x number of days after activating the card, then you will get the increase. Check with a Capital One representative for the specifics (and to make sure you're enrolled in the program), or you could dig around online. Regardless, that's the basic idea.
As far as getting a card with a higher limit, note that most credit cards don't come with minimum limits. For example, Some people with the same American Express cards have gotten initial limits as low as $1000 or as high as $20,000+. With a score in the 700's, you could most likely get approved for a different card with a higher limit. However, there are many factors besides score that a lender will look at. Besides student loans and the Capital One Platinum, do you have any other lines of credit? What is your utilization if you do have more cards/lines of credit? What are the limits? Also, what is your annual income? All of these factors play into the decision of a approval/denial in credit.
Hope this helps!
Capital One Secured AU | $1851 | 10/2013
Capital One Journey | $1000 | 03/03/2016
American Express Delta Gold | Denied | 03/13/2016
Citi Bank Double Cash | $1000 | 03/13/2016
Chase Amazon Visa | Pending | 03/13/2016