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I recently opened my first credit card from Capital One in August. I applied for the Platinum Credit Card and got approved with a $300 limit. I checked my email today and realized I got a $1,500 credit increase. How does this affect my credit score? I've read that it's hard getting an increase with Capital One, is it a good time to apply for a second credit card?
My scores from Credit Karma are 669 Transunion // 676 Equifax
My score from Capitals One credit tracker is 726
( I know those are not my actual Credit Scores or Fico Score )
I recently opened my first credit card from Capital One in August. I applied for the Platinum Credit Card and got approved with a $300 limit. I checked my email today and realized I got a $1,500 credit increase. How does this affect my credit score? I've read that it's hard getting an increase with Capital One, is it a good time to apply for a second credit card?
My scores from Credit Karma are 669 Transunion // 676 Equifax
My score from Capitals One credit tracker is 726
( I know those are not my actual Credit Scores or Fico Score )
I recently opened my first credit card from Capital One in August. I applied for the Platinum Credit Card and got approved with a $300 limit. I checked my email today and realized I got a $1,500 credit increase. How does this affect my credit score? I've read that it's hard getting an increase with Capital One, is it a good time to apply for a second credit card?
My scores from Credit Karma are 669 Transunion // 676 Equifax
My score from Capitals One credit tracker is 726
( I know those are not my actual Credit Scores or Fico Score )
Every time you do anything regarding credit it shows on your credit report. If you go above what you can pay, it lowers your score. If you are offered a store card, it shows on your credit report.
The best thing to do is use the one card, pay it off every month & stay out of debt. Many of us got into deep debt by using plastic instead of cash.
I just got one of those Cap One Quicksilver cards with a $10k limit. My Transunion score dropped by 4 pts from the application, but it's only temporary (a couple months I think) and I expect it to recover and to increase by a few points after that (I pay all cards down every month).
Since you are new to credit cards, this is a good time to seriously ask yourself about your motive for wanting multiple cards and a higher credit limit. Keep in mind, higher credit scores come from paying your bills, not from simply having credit cards.
Think of credit cards like owning a gun, with the higher credit limit representing the caliber. If you don't plan to use your cards/guns, they serve more as a convenience or peace of mind if you ever did need it. But, if you plan on using cards regularly or making them part of your monthly spending budget, you probably need some 'gun/card safety' practice and some controls to ensure that your 'shooting' doesn't get out of hand.
From what you've said, now might be a good time to work with your single, $300 limit card, for a while to establish some spending/credit/payment habits. Once you are sure you are prepared to responsibly handle a small caliber 'card' without shooting yourself in the foot, you might then revisit the idea of multiple cards with higher limits.
(Further, once you show that you responsibly pay your bills on time, you won't have to chase down CC companies to apply for cards --- They will send you more "just sign your name for automatic approval" card offers, than you will want to deal with.
I personally find a $300 card to be rather useless beyond your simply being your very first card. Your utilization ratio will shoot through the roof every time you charge something. I can't remember the last time I went over 20% utilization, but I certainly know the last time I put something for more than $60 on a card(It was dinner about 4 hours ago). Granted, $1500 is a better, but it's still easy to hurt your utilization.
I'd apply for a new card if I were you. Capital one is notoriously stingy about credit lines increase. You want to use and pay off cards to build your credit score, but using a capital one card quickly hurts your score.
Citi's double cash card is a good every day usage card if you can get it. Use it, but pay off the balance in full every month. Your score will rise in no time. If your monthly expenses are currently in line, you could look at other cards with intro bonuses (CIti Premier or Chase Sapphire for example) but I doubt your score is high enough at the moment.
But most importantly, don't get those if you don't already spend enough to meet the spending bonus requirements. Spending more to make some back is where CC's become dangerous.
And yes, the penalty to your score for getting a new card does go away pretty quickly.
I started with a $300 credit, paid my bill on time and I received a $1500 increase WITHOUT asking for one.
I am new to credit as this is my only card. I just want to know now can I raise my credit score.
Do I keep using this one card or apply for another?
I don't use my card for unnecessary things. I only charge my cell bill ($30) I never carry my credit card with me as I don't want to go purchase things I won't be able to pay in full by the time the bill comes.
If I was to get another card I will charge my Internet bill ($32)
These are things I would have to pay every month anyway so that's why I decided to open a credit card . . To build credit.
I started with a $300 credit, paid my bill on time and I received a $1500 increase WITHOUT asking for one.
I am new to credit as this is my only card. I just want to know now can I raise my credit score.
Do I keep using this one card or apply for another?
I'd get another card simply for convenience: if your current card gets compromised, you'd have a fallback card to use until the new replacement card arrives in the mail. (This is especially important if you travel, since any replacement card will be sent to your home address, so you won't have access to it until you return home from your trip.)
Quote:
I don't use my card for unnecessary things. I only charge my cell bill ($30) I never carry my credit card with me as I don't want to go purchase things I won't be able to pay in full by the time the bill comes.
If I was to get another card I will charge my Internet bill ($32)
These are things I would have to pay every month anyway so that's why I decided to open a credit card . . To build credit.
You're doing it the right way! I'd consider applying for a no annual fee cash back card like the Citi Double Cash or Chase Freedom. And if your first card is a VISA, it might be nice to make your second card a Mastercard (or visa versa).
The Walmart card is a good one to apply for - they're usually pretty generous with CLIs after a few months have passed since account opening, AND you get your TransUnion FICO score for free!
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