Capital One Steps & Utilization ?

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Shawn
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Capital One Steps & Utilization ?

Postby Shawn » Wed Mar 05, 2014 8:14 pm

I was wishing I would've applied for all those offers companies kept sending me when I was student. With no credit history, every card, even the retail store cards denied me for an unsecured card. Eventually Capital One sent me an offer in the mail for an unsecured card with no AF. I applied and was actually approved, when just a few months ago Capital One denied me. So now I have my very first credit card!

I'm pretty sure I'm enrolled in the Capital One steps program, because it said my initial CL is guaranteed to go up after I pay the first 5 statements on-time.


My initial thought was "Cool. I'll just put Netflix on it, then put it in a drawer and pay the bill every month and see what sort of CL increase they give me in 5-6 months"

But now I'm wondering. Is the initial CL increase predetermined? Will that first increase be the same no matter how much I'm using the card as long as I pay everything on-time? Or should I make sure to use 20%- 30% every month to get a LARGER automatic CL increase?

Anyone know how Capital One determines the first CLI?


MemberSince99
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Postby MemberSince99 » Thu Mar 06, 2014 6:30 am

With Cap One steps, you get the same increase no matter how you use it, you can put thousands through it every single month paying in full and calling them to give you back the available credit so it doesn't stay maxx'd out for two weeks like normal, and they will still give you the same 250 increase or whatever it is - it's predetermined and your usage will not change it, it doesn't matter if your name is Bill Gates and you could buy Cap One - you would have to actually buy it to change that.


So expect about a 250 increase, and then it may not go up again for 10 more years. All it's any good for is to give you a revolving credit history so you can move on to better cards that can grow with you after it reports for at least 6 months.


I hope this was clear. If you have dreams in your head that they are suddenly going to find Buddha in their closet and give you a grand or more, it would be best to drop those now. Steps is just designed to introduce you to credit.

takeshi
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Postby takeshi » Thu Mar 06, 2014 7:35 am

Shawn wrote:Or should I make sure to use 20%- 30% every month to get a LARGER automatic CL increase?

As stated above usage doesn't matter. The CO rebuilder cards are only really good for getting started/restarted with your credit. These products will not grow with you and you'll have to move on to other products that do or contact the EO to PC.

Shawn
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Postby Shawn » Thu Mar 06, 2014 12:27 pm

MemberSince99 wrote:With Cap One steps, you get the same increase no matter how you use it,


takeshi wrote:As stated above usage doesn't matter.


Thanks.

I'm very aware of Capital One's reputation with credit lines not growing

For the first CLI(and probably only CLI) I was just wondering if utilization % was the reason some people got a $250 increase while others got a $500 increase and while fewer still got a $1000+ increase. Seems that's not the case, so I wont bother trying.

Hopefully I'll have enough of a credit history in 6-7 months that I can get another card from a different bank. If not I guess I'll have to wait until I've had this card over a year to get a second card.

MemberSince99
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Postby MemberSince99 » Thu Mar 06, 2014 6:05 pm

6 months reporting on your credit reports could do it for something like Chase Freedom, Discover IT or an Amex charge card. It's always YMMV but 6 months is the minimum most prime (good) lenders want to see.


Nope you can't change that amount with utilization don't waste your time. Again these cards are the best you can get with no deposit to build or rebuild with, but that's really all they are meant and good for. Once you can move on, do it. I did the same thing I had their 500 limit card in the steps program which gives you basically one CLI in your life and I have NO I mean ZERO regrets about moving on to what I have now. I don't even look back in the rearview at Cap One and they were just as happy to see me close so everyone won.

aleger23
 
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I found not all CLI are the same

Postby aleger23 » Sun Apr 20, 2014 6:31 am

I have a Capital 1 card and was waiting for the credit step to kick in. I was approved for $300 and promised $500 at 5 or 6 months. I used my card a lot and made multiple payments each month. I got an increase of $1500, I was shocked.

But my husband go the same offer to upgrade to $500, used it a little each month and paid on time every month but he only got the $500.

MemberSince99
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Postby MemberSince99 » Sun Apr 20, 2014 3:11 pm

That is very unusual and not the norm for them. Maybe they are loosening up; otherwise you are just that small percentage that gets lucky with them.


When I last had them (years ago thank goodness) I did exactly what you did and I couldn't get anything out of them. They took two weeks to restore my available credit after a payment, which I made immediately because the limit was so small you really couldn't put much on it, making the card essentially unusable for half the month. I called and pleaded for an increase to a limit I could actually use, and no dice they were having none of that. They were exceedingly happy to close the account for me and lose the risk of 500 dollars, almost as happy as I was to lose them. They were so bad, that I had NO credit cards and went back to my debit card simply because of what a PITA they were.


Believe me once I got decent prime cards, I have not missed them for a second. And we haven't even gone into their useless nearly impossible for Americans to understand script-reading customer "service" if you can call it that. Thinking back on having their cards makes me even more grateful to not have them in my wallet today.

Caseyr3
 
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Credit Steps

Postby Caseyr3 » Mon Jul 14, 2014 11:50 am

Applied and approved for Capital One Quicksilver One in Jan with a $2000 CL. Just made my 7th payment and my CL went up to $5000. Curious if these are one time CLI increases or something they will do regularly as I continue to pay on time and use the card regularly?



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