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Best stratagy to grow low limit cards?


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Two and a half months ago I went on an app spree and went from having only 1 secured card to a dozen low limit cards (a couple sub-prime Visa cards, Target, Khols, Comenity Store/Gas Cards, etc.) and a QuickSilverOne card with a $500 CL. All total about a $6K credit limit.

 

Would it be better to just use them a little bit each month and pay them off before statement? OR Run them up each month and pay them off before statement? OR something else?

 

I've been paying off the charges as I use them. Using my bank's bill pay system my credit card payments show up the next day so in theory I could run two or three thousand through my CapOne card every month and have it paid down to zero before the payment hits without ever going over my CL.

 

How should I garden these cards?

Edited by allxsecrets
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I don't see any point in paying before the statement, just pay the bills off after the statement arrives. As for getting better limits, you can call and ask for better limits, keep utilization under control, improve your credit score/report, and increase your income.

To "keep utilization under control" you have to pay before the statement cuts because otherwise it appears in your reports as if you're carrying a balance that you aren't really paying off.

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Back in my old days at Citicards, internally, every account was coded as either a "Transactor" meaning they tended to PIF or a "Revolver".

 

Transactors were more inclined to be able to call the shots. If a Transactor was late on a payment and therefore incurred finance charges, we were empowered to waive the late fee and the finance charges. If a revolver found him/herself in the same scenario, we might be able to waive the late fee, but we wouldn't waive any finance charges, even if he/she happened to PIF that particular month.

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Use the cards that are likely to grow heavily... the QS, for example, the Target card (maybe?), and maybe Comenity. The QS is the only one you listed that I'm pretty sure will double within the first 6 months. Use heavily, pay heavily, and ask for a CLI the day after your third statement posts.

 

The others are not likely to grow quickly. It doesn't seem as if Kohls (even though it's Cap1) will grow before 6 months whatsoever. I haven't had any luck, anyway. I don't know much about Target other than the fact that I'm blacklisted now--lol... and most lower end Comenity cards don't seem to grow within the first 6 months from what I've seen; Some will, but most do not. YMMV.

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Use them heavily and pay them off in full every month. Whether you pay before or after the statement is a preference. People debate about it but at the end of the day, it's hard to say whether it really matters since utilization has no memory. Of course, if the card is going to report as maxed out, you probably should avoid that but again, it's only a one month thing.

 

Focus on growing the Quicksilver since it's a broad use cash back card. While growth on Kohl's/Target/etc may feel good, it's not as much of a priority IMO.

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Use them heavily and pay them off in full every month. Whether you pay before or after the statement is a preference. People debate about it but at the end of the day, it's hard to say whether it really matters since utilization has no memory. Of course, if the card is going to report as maxed out, you probably should avoid that but again, it's only a one month thing.

 

Focus on growing the Quicksilver since it's a broad use cash back card. While growth on Kohl's/Target/etc may feel good, it's not as much of a priority IMO.

 

I'm really not trying to stalk your posts.......but it isn't "hard to say" re: PIF, and there isn't any debate around here. PIF all cards before the statement cuts, let one card report a small balance for maximum FICO effect. It isn't debated, it's a proven fact.

 

It is personal preference of course and I don't go out of my way to do this month to month (but it's good to know regardless, particularly when you need to max your scores). The only thing I do try to avoid is letting a large balance report on a lower limit card, causing high utilization on one card. It's easy to let it happen, especially when snagging a sign up bonus.

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Would it be better to just use them a little bit each month and pay them off before statement? OR Run them up each month and pay them off before statement? OR something else?

Cards with little to no usage can see large CLI's. Cards with heavy usage can see no CLI's. Don't rely solely on usage. It is not just the account itself that matters. Your entire credit profile and your income are the primary factors used to determine the limits and CLI's that you qualify for. The best strategy is to identify issues your credit profile and to address them. Your issue isn't that the cards are low limit. It's that your credit qualified for the low limits.

 

Certainly keep reported revolving utilization in mind and, if desired/of benefit, allow only one balance to report at whatever amount to optimize when apping or requesting a CLI.

Edited by takeshi
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Use them heavily and pay them off in full every month. Whether you pay before or after the statement is a preference. People debate about it but at the end of the day, it's hard to say whether it really matters since utilization has no memory. Of course, if the card is going to report as maxed out, you probably should avoid that but again, it's only a one month thing.

 

Focus on growing the Quicksilver since it's a broad use cash back card. While growth on Kohl's/Target/etc may feel good, it's not as much of a priority IMO.

 

It's a horrible idea to let low limit cards report a high balance, and that will slow down rebuilding.

 

FICO most certainly does have a memory. It's called FICO scorecards, or as we commonly refer to them, scoring buckets. It may take several months to get rebucketed from a period of high utilization.

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Would it be better to just use them a little bit each month and pay them off before statement? OR Run them up each month and pay them off before statement? OR something else?

Cards with little to no usage can see large CLI's. Cards with heavy usage can see no CLI's. Don't rely solely on usage. It is not just the account itself that matters. Your entire credit profile and your income are the primary factors used to determine the limits and CLI's that you qualify for. The best strategy is to identify issues your credit profile and to address them. Your issue isn't that the cards are low limit. It's that your credit qualified for the low limits.

 

Certainly keep reported revolving utilization in mind and, if desired/of benefit, allow only one balance to report at whatever amount to optimize when apping or requesting a CLI.

 

 

I always leave a couple of bucks on one card to get that extra score bump.

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Use them heavily and pay them off in full every month. Whether you pay before or after the statement is a preference. People debate about it but at the end of the day, it's hard to say whether it really matters since utilization has no memory. Of course, if the card is going to report as maxed out, you probably should avoid that but again, it's only a one month thing.

 

Focus on growing the Quicksilver since it's a broad use cash back card. While growth on Kohl's/Target/etc may feel good, it's not as much of a priority IMO.

 

It's a horrible idea to let low limit cards report a high balance, and that will slow down rebuilding.

 

FICO most certainly does have a memory. It's called FICO scorecards, or as we commonly refer to them, scoring buckets. It may take several months to get rebucketed from a period of high utilization.

 

Thanks for clearing that up. I've also heard that FICO has no memory, but know I know better. I should be okay, I've always paid my cards off to where I have <1% balance.

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Would it be better to just use them a little bit each month and pay them off before statement? OR Run them up each month and pay them off before statement? OR something else?

It is not just the account itself that matters. Your entire credit profile and your income are the primary factors used to determine the limits and CLI's that you qualify for. The best strategy is to identify issues your credit profile and to address them. Your issue isn't that the cards are low limit. It's that your credit qualified for the low limits.

 

 

Here's my problem. My only issues are age (and inquiries). At this point all 12 accounts have been PIF before the statement cuts every month (except for a couple of bucks on one card). I have no negs or late fees.

 

My AAoC is under 3 months, my oldest account is only 6 months old. My FICO8 is 693.

 

I'm not going to apply for any new credit for a while, so I'm just trying to come up with a plan to garden what I have while the accounts get older and the inquiries fall off.

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The last post in this topic was posted 2084 days ago. 

 

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