Hi all! What a great board with great people! Just what I need for help. I am about 6 months into rebuilding my credit, with the help of 4 secured cards (Providian, DMB, Cap1, and Orchard). My credit limits are low, so I pay all off in full (using internet payment) at least every month, sometimes twice a month, to have available credit. I fear this may be hurting me for future credit increases, as interest is where they make their money. True or false? Thanks in advance.
I did the same with capitalone. Raised $100 limit at Month #2 by request. will let you know on the 27ths what the second (#8 month) request yields. since my online purchases go through this car. i pay about $1600+/month on my $600 limit card.
Hello there As far as I know, having balances helps, but not that much. I think a better idea would be to use the cards close to the limits (let's say 80%) and pay them off each months. This way you won't get slapped with finance charges and they will think that if they increase your lines, you'll get in over your head (which you won't).... Anyway, that's just one opinion, your mileage my vary. It worked for me, Providian and Associates increased regularly.... And you should look into getting unsecured cards. At least Providian and CapOne should unsecure your cards, or let you apply for unsecured ones...
How often did the Associates increase your limit? Did you request it or was it done automaticly? Thanks. Saar
Unfortunately, banks like people who hold balances and make timely monthly payments just a little bit more than those people who pay their balance in full every month. While the banks make money off the convenience user, they make more money if you carry a balance. So, here's the strategy. 1) Buy a single big ticket item (something that uses 60-80% of your credit limit). Extend payment of that item over two to three months. Here is the proviso I give my clients: whatever you purchase, you should have the money to pay off when the first bill comes; you are extending payment only to demonstrate that you can carry a balance and pay it off. After, you've paid off the balance. Leave the card alone for a month or two (ahh, this shows you're disciplined, you live within your means and that you aren't dependent on your credit cards to live.) Remember, you can use other cards, just not that one. After the dormant period charge as before. I think you have four cards, if I read correctly, you should be able cycle through this process with each card in about a year. This will help with getting limit increases.