paying balance in full

Discussion in 'Credit Talk' started by black-ink, Oct 19, 2000.

  1. black-ink

    black-ink Guest

    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.
  2. sam

    sam Well-Known Member

    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.
  3. Sorin

    Sorin Well-Known Member

    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...
  4. Saar

    Saar Banned

    How often did the Associates increase your limit? Did you request it or was it done automaticly?


  5. curiouser

    curiouser Well-Known Member

    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.
  6. Alwilda Sm

    Alwilda Sm Guest

    They also make money off their clients that accept their card.


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