almost_there Posted August 7, 2003 Report Share Posted August 7, 2003 I just got off the phone with Cap One. We've had a secured card with them for one year this month, $500 limit, always pays as agreed. They said we could now opt to unsecure the card, get our deposit back and get a limit increase.If I get a limit increase on this card, max it out and then return the items or pay it down very fast, will this raise my score because I'll get the higher credit limit reported and still have a lower percentage of my available credit used?I'm not sure if this is to be done over one billing cylcle or two or what?Could someone explain more about this practice? Thanks. Link to comment Share on other sites More sharing options...
kb9tbq Posted August 7, 2003 Report Share Posted August 7, 2003 Yes, that should work quite nicely - to increase the credit limit. Then pay down to less then 30% of the available limit. This should help your credit score.I don't think you should have to wait more then one billing cycle to accomplish this. Link to comment Share on other sites More sharing options...
TylerDurden Posted August 8, 2003 Report Share Posted August 8, 2003 I'm about to do this too. We have a Crap One account with 19K CL and no balance. It's currently showing in my CR as having about 5K highest balance. I have a couple of CCs from which I can transfer balance to this account and payoff in a couple of months. I'm curious as to how much getting them to report a higher CL would affect my credit rating. Will keep the board posted.----------------- Link to comment Share on other sites More sharing options...
kb9tbq Posted August 8, 2003 Report Share Posted August 8, 2003 At the time you would of had that $5,000 balance & the credit limit showing the same, the ratio would of been 100% maxed. On the other hand if the $19,000 credit limit was reporting when you had the $5,000 balance.$5,000 divided by 19,000% = 26.32% utilizationThat is a considerable difference on how that affects your credit scores.Especially since that is the easiest factor to change and affects 30% of your over all credit score.Some people consider charging something to the account, then turning around and taking it back for credit later. That is one way - but where are you going to find something worth $19,000 that you can just return.In your case I would suggest getting a cash advance and putting the money into checking and before the grace period is up - pay the money back. I don't know if you can get that much at once for a cash advance, would have to check their policy on this first. Link to comment Share on other sites More sharing options...
TylerDurden Posted August 8, 2003 Report Share Posted August 8, 2003 Some people consider charging something to the account, then turning around and taking it back for credit later. That is one way - but where are you going to find something worth $19,000 that you can just return.Yeah, I don't think I can spend that much and then return it. Now, if I don't have to return it, I can think of a few things I can indulge myself with... I was actually thinking of transferring the balance of 2 other CCs to this (Cap One offers 2.9% with no balance transfer fees). The total should be pretty close to the 19K balance. I was going to payoff the CCs anyway with the cash out from the refinancing. After the balance transfer, I'll wait a payment cycle, then just payoff the balance of the Cap One account. I will definitely follow your advice and leave about $50 each on all my CCs so as to keep them active.----------------- Link to comment Share on other sites More sharing options...
catnap1972 Posted August 8, 2003 Report Share Posted August 8, 2003 Just watch out that the other cards don't use this as an excuse to jack you."Hey...we gave you this so and so card under the assumption you had a $5K limit on that other card, not $19K" Link to comment Share on other sites More sharing options...
kb9tbq Posted August 8, 2003 Report Share Posted August 8, 2003 Yes, definitely with the excess money on the other cards - that will fix the credit from showing balance transfer status. You definitely have it made with that kind of balance to move around. Know you are going to be quite happy with the results on your credit scores going up for sure. Link to comment Share on other sites More sharing options...
TylerDurden Posted August 8, 2003 Report Share Posted August 8, 2003 Just watch out that the other cards don't use this as an excuse to jack you."Hey...we gave you this so and so card under the assumption you had a $5K limit on that other card, not $19K"Whoa... I'd never thought of this. Then again, if this happens, I won't be surprised either. I've come to find out that they're pretty much free to make whatever decision they wish to make as there is currently no laws to regulate rate changes.Thanks for the warning...----------------- Link to comment Share on other sites More sharing options...
TylerDurden Posted August 8, 2003 Report Share Posted August 8, 2003 Yes, definitely with the excess money on the other cards - that will fix the credit from showing balance transfer status. You definitely have it made with that kind of balance to move around. Know you are going to be quite happy with the results on your credit scores going up for sure.I really hope so. I can't wait to see how getting Cap One to report higher CL and paying off my balances affect my credit scores. After this, I'm locking up (not close them, just put 'em in the freezer of something ) all but one of my CCs and hope that I'll never have to use them again.----------------- Link to comment Share on other sites More sharing options...
catnap1972 Posted August 9, 2003 Report Share Posted August 9, 2003 As I'd posted awhile back, I gained 35 points on EQ by raising the reported limit from $1413 to $2883 (balance under $700), so you should be golden with what you have to work with. Link to comment Share on other sites More sharing options...
humdinger Posted August 13, 2003 Report Share Posted August 13, 2003 What kind of points do you think if my CL goes from 1700 to 7000 ? Link to comment Share on other sites More sharing options...
kb9tbq Posted August 13, 2003 Report Share Posted August 13, 2003 That is hard to say for sure, but I would imagine you should see a nice increase - hopefully better then 20 points. Just depends on other factors also contributing to the score. Link to comment Share on other sites More sharing options...
humdinger Posted August 13, 2003 Report Share Posted August 13, 2003 Thanks KBI seem to have hit my ceiling recently hopefully this will raise the roof a bit. Link to comment Share on other sites More sharing options...
isaao Posted August 25, 2003 Report Share Posted August 25, 2003 On secured cards, you are only eligible for an increase every 6 months, there can be no ol or late fees w/ in the previous 6 mos. The max increase is 300 min is 100. I think the higher payment amounts you makeeach billing cycle, the higher your credit limit will go to. Also make sure you make at least 4-5 transactions a month. Link to comment Share on other sites More sharing options...
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