In another thread about cutting up a new Cap1 $500 limit card, I read this posted by hoapres: I thought about this before and never had the clear realization that I've come to today - thanks hoapres. My theory is that Cap1 makes a LOT of money in the subprime market. For all the chances they give people, the ceiling is very, very low and the subject of many gripe threads. They will see a certain percentage improve their scores and move on. Those customers will naturally leave Cap1, their fees, low level of service, etc. and migrate to prime lenders. A certain percentage will simply remain status quo. In fact, I'll bet most of Cap1's customers never ask about CL increases, BTs, APRs being lowered, etc. They just pay the fees and keep using - or not using - the card. And a certain percentage burn them. But the burn is not for very much, and the fees and mechanisms Cap1 have in place help offset these costs. To me, it's a reminder that I'm doing better but since they are one third of my current CC "portfolio", I'm going to manage it as well as possible. I did just get them up to $1.9k in 15 months, only paid a fee upon first getting the card and am now working on getting my APR lowered. I figured out how to get their attention - and approval - and that's to use the card. Instead of using my paypal card this month, I've used Cap1 and I've run up $800, which I'll pay in full and avoid any interest. Then I'll see if they're more interested in lowering the APR from 15%.
took me a year or two to get 9.9% with $0 fee on my gold card converted from secured. i think i have $3200 limit these days, haven't a clue where the card is , probably some box outside. lol. Dont plan to use it, but they do report it every month as active so i dont care. its my oldest tradeline.
I closed my Capital One (Also my oldest Credit line) a year ago for the measly limit (2.9 K for a 3.5 years account with perfect history)and my scores didn´t lower. As matter of fact the scores increased some points. I am very happy since I closed my account with them.
oddly my scores keep going up as my new cards keep going on. I guess the Fact that i have a buttload of inquiries and new accounts, is reversed by the debt ratio. I've got about 250K listed now on EXP as open credit lines. everytime i see a new raise in score. Other than at the first of the month, i go and sure enough a new card that i've acquired in my mad crusade, has posted. Doesn't matter that i have 9 inq's in the past 12, or 9 new cards in the past 6 months. It keeps going up and up. i guess thats a flaw in their FAKO fico crap.
cause its fun Never run out of promo APR's. You haven't noticed some of us around here are credit junkies Look at the date of my account. About 6 months prior to that i had all derogs and $0 credit. So i've learned alot about how to get ALOT of credit, keep it, and use it for your advantage. Mostly now i just get new cards for rewards and 0% APR as you know 0% borrowing is better than you can get on a house/car/boat/etc. So i'll take that 12 months at 0% and work it to as long as they'll let me have it, then move on. Oddly, after you dont use a card for a while (take away their candy) they offer it again. Anyways, theres some credit junkies around here. I think they are pretty silent these days. but i know you're out there cause i talk to you on im
how does that affect your FICO? despite my being a lender - we are anti-credit. other than our mortgage, we have $1000 cap one card w/3.99% apr (for traveling). i am not a credit junkie - i am a savings junkie. i like seeing 6 figures in my portfolio rather than on my credit report. (is there a 12 step program out there for us?)
More open tradelines on the report, the better FICO is .... assuming that your total debt DOES NOT increase; simply due to the fact that your debt-to-available-credit ratio goes down substantially, and that's THE factor that's known to boost FICO. More tradelines also add to the "diversity" of the report. Should something go wrong with your cap-1 card, on your report you have now 100% of the tradelines reporting derogatory information, and no positive accounts to balance it against. Just think what that'd do to the FICO score .... Also you said the limit on your card is only $1000. That's quite a low limit. Note that whenever you rent a car, or book a hotel on this card, they "block" an amount as much as 4 times your anticipated charges on the card, and you are now running a real risk of not being able to use your card due to the block, when you really need it ... although you look like you are averse to having credit cards, sometimes they can be real life savers, especially those from prime lenders like Citi and BofA. I have 43 accounts on my credit card, only 2 of them are real-estate loans (1 refi), the rest are all credit card tradelines. 34 of them are closed, though, so I have 7 open lines right now. Never late on any of them. All those closed cards add nicely to the history of my report ... another factor considered in FICO scoring algorithm. My scores the last time I checked (late Oct) are 784 EQ, 791 TU, 767 EX. I offer these details to serve as a data point to draw some empirical inferences.
here's a thought: hubby Eq FICO 767 (haven't checked the others in a long time) - 5 cc TL's; only one reporting as open(last reported 12/00) w/a $400 limit. nothing current reporting (neither our mortgage or cap 1 account reports on his EQ) my EQ fico is 695 as far as the $1k limit - i purposely keep it low because it is really only for emergencies. most traveling is done by train or car. don't get me wrong - i am in no way criticizing you. just more fascinated with the exact opposite extreme of myself. (i think it is my line of work that does it to me)
i should back-peddle a second and state that i have in the past numerours credit cards, auto loans. i changed my tune about 5 years ago after having to file banko (which, btw, doesnt report anymore - but thats another story) so all in all i have between 5 tl's reporting on EQ to 10 reporting on TU (exp is about 7). so i have plenty of "good" accounts reporting and nothing negative.
Re: Re: Why Cap1 limits us - my theory Just a note of caution ... positive tradelines may remain upto 10 years, and you bet the CRAs would delete those tradelines from your report once 10 years are up from the closed date. Just ask me how I know. Come 2010, your hubby is risking a blank report. I did not take your reply as criticism .. I am just saying that you seem to take credit cards to be the equivalent of the Devil, to be avoided at all costs I think they have their uses .... By posting my scores, I was trying to answer your question "how does that affect FICO scores?" ... was trying to show that my FICO scores received a boost due to all the credit card activity. I certainly did not intend to say that people with your profile (ones with no credit card tradelines) cannot have good scores. If I even unknowingly conveyed an impression otherwise, please accept my regrets. Have a happy new year. This'd be my last post on this thread.
Re: Re: Why Cap1 limits us - my theory i'm not saying i dont/wont utilize credit - i simply think $250k is A LOT. id take a blank one over a bad one any day!
Re: Re: Why Cap1 limits us - my theory Thats right.... You may not like the idea of having to have 4-6 cards open, but it is true that the positive stuff falls off 10 years after the account is closed and if your report is blank, you'll be back at square 1. Theres alot to be said for being debt-free and not having any credit cards, but that line of thinking is dangerous in a world where credit is becoming an economic necessity.
Re: Re: Why Cap1 limits us - my theory No one will argue that 250K is alot. I certainly am not losing any sleep at night trying to reach those limits. To each his/her own.
Re: Re: Why Cap1 limits us - my theory When used responsibly, credit cards, payed off monthly, are a safer way to make payments than debit cards, cash, or checks. Your exposure to fraud, theft, and robbery is reduced, the number or parties with direct access to your bank account is reduced, and some activities, such as renting a car, or hotel room are more difficult or require cash deposits without credit cards. Booking any ticket or making any payment arrangement for a product or service to be delivered in the future is more risky without the intermediary of a credit card bank to reverse a charge if the retailer does not deliver, or prevent payment until the retailer actually ships. Available credit is also cheaper and safer insurance against problems while travelling than cash, debit cards, or travelers checks.
Re: Re: Re: Why Cap1 limits us - my theory i hope you dont think i was criticizing. i am just - like i said - fascinated by the opposite extreme of me. i cant rightly ask a customer, so i asked here. maybe someday i will break out the visa for the Prada's instead of paying cash!!!!! FYI - when getting into certain lending programs, you may be expected to use up that available credit before any additional will be extended. or worse still, the new trend amongst mortgagers/lenders is to use the estimated monthly payment of your total available credit - not just what you currently are using.($250k x 5% est mo pay = $12500 monthly payment) just an FYI from someone in the industry.
