I'm rebuilding credit after bankruptcy (Chapter 7, discharged a year and a half ago). I've got two credit cards, accounts opened through mailed offers: credit lines below $1000, have been using them, keeping utilization ratio around 60%, and paying off balance in full each month. I've started receiving offers from Capital One, probably intended for someone who is rebuilding or has OK credit. Ultimately, I may be interested in their "miles" card, which typically requires excellent credit. Would getting their 'entry level' card improve my chances of getting the miles card? Or might it hurt because I'd have more open accounts?
Your definitly on the right track! Remember get that balance paid off before the statement cuts or thats what i do. I may have high utilization on a card but when they are reporting to CRA i make sure they are reporting under 10% EVERYTIME. i dont want my report to look like i am overextending myself over 10% i can see the consequences on credit report. I have all kinds of info on CRAP1 thy hate to increase credit lines past 2-3K on any of those cards platinum for starter cards. But Yes you can over time get them to do it via the executive office. Would getting their 'entry level' card improve my chances of getting the miles card? short answer NO. But heck anything is possible. Just don't count on it! Anytime you get you open a new account your AOA will will go down whats your AOA right now? And whats your scores? When you get approved or NOT its score dependent. Sounds like your asking something like if just because I apply for a card with a fee I am more likely to get approved! This is NOT the case. If I get a entry level card your NO more likely to get it than you were if you didn't have it. There are better cards to be had than CAP1 they are too stingy in my opinion but they are a means to an end! I keep mine because trading 8 yr old account for a nice shiny new 1 day old card will affect my AOAA to much. I tell everyone to have a PLAN! short term and long term.
I would keep your utilization rate much lower, around 30% or less, or below 10% if you can. I'd also wait about 6 months in between applying for cards. I don't necessarily think you need a 3rd secured card. Just using the ones you have responsibly and keeping util. rate low should slowly but surely increase your score (assuming you take care of any other negative factors.)
Logan, if he is trying a to show that the amount of credit is not adequate and showing continuous high usage he shows a the ability to pay back. This tactic has worked for others but usually high usage in conjunction with multi payments a month. Credit line increases have been given Where does he say these cards are secured?
When I have to use credit cards for big items say for instance $1000 tv if my card has a 9k I call and say hey this is bla bla.......... I want to buy a tv and it's 1000 dollars but my I don't use my credit cards for over 10 percent. They can easily check my acct..... See I'm telling truth...... I tell them I need to do a credit line increase to be able to buy this however I would like to still use my card this month so can I please get an increase to something like 13k. Over the last year this has worked out more times than not.
Then I pay off entirely or leave a small balance reporting. I will tell u this that out of my 8 or 9 cards a small balance reporting on 1 or 2 cards I get a higher FICO for the month.
