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Credit Line Increase and new credit card?


maverick9
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23 minutes ago, MP80 said:

You completely misunderstand what Securitization means for Capital One bucketed credit cards.

 

Your Capital One bucket credit card is an Asset-Backed Securities (ABS) credit card, which is why your subprime card probably never grows.

 

Credit card debt, the "money" you borrow when you make a charge, does not just come out of thin air.  The creditor who is giving you a credit limit needs that money from somewhere to pay the companies you buy from.  The credit card industry in the US is well over $1 trillion in the amount owed, but credit limits are much higher than this.  That means that the creditors need to be able to make payments of over $1 trillion to vendors.  It's a staggering amount.

 

The way that credit card companies can pay out your purchases is by using their own cash assets, or by enticing investors to put money in.  The latter is how they make an ABS or an Asset-Backed Security.

Thanks for the explanation!

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19 minutes ago, MP80 said:

Big banks would accept an application for a secured credit card with a credit line of $25K by pledging a $25K deposit to connect the collateral.

Ah okay. Kind of like a secured credit card. I can do that. 

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7 hours ago, maverick9 said:

Awesome! Pry bar is when one creditor will be the first to give you a high limit? If so, I felt it was Amex because they gave me a $9,500 limit right out the door even after I had settled a 2k amex card prior to them giving me this existing one and given this $9,500 limit. 


Oh, so the plot thickens!!

 

Even though an event doesn't still report on your credit reports, creditors have a long memory -- especially AmEx which has the memory of an elephant.  They will remember your previous default until hell freezes over.

 

There's no fooking way they will give you a CLI to $28,500 now or in the near future no matter what you do.  It would be a miracle if they gave you an increase to $15k.  
 

You need to set more realistic goals.  The ones you have now are delusional.  

 

 

Edited by PotO
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7 hours ago, maverick9 said:

Yes. "Legally paid in full for less than the full balance". Some are charged off but all were charged off on or about 2/2016 so in 2/23, shouldn't they fall off being that they are 7 years old then? 

 

Yes. I will heed your advice. Given my perfect history that was tainted in 2015 but no BK and successfully recoverd, I'm not sure where I stand with these creditors and my credit file. 

 

Yes it used to be secured but no longer. 7/31/21 upgraded to Quicksilver and asked for a CLI but got declined. 12/7/20 automatic increase from $300 to $600. 


Yes, they should fall off around 2/23.  Until then, however, an account marked "settled" or equivalent, is seen by creditors when they access your credit reports.  They will usually hold that against you in one way or another.  
 

What reason did CapOne give you when they declined your CLI request?

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2 hours ago, MP80 said:

Big banks would accept an application for a secured credit card with a credit line of $25K by pledging a $25K deposit to connect the collateral.


All credit card issuers that I have seen have a maximum limit on their secured cards.  Which have you ever seen which will allow $25k?

 

2 hours ago, MP80 said:

You completely misunderstand what Securitization means for Capital One bucketed credit cards.

 

Your Capital One bucket credit card is an Asset-Backed Securities (ABS) credit card, which is why your subprime card probably never grows.

 

Credit card debt, the "money" you borrow when you make a charge, does not just come out of thin air.  The creditor who is giving you a credit limit needs that money from somewhere to pay the companies you buy from.  The credit card industry in the US is well over $1 trillion in the amount owed, but credit limits are much higher than this.  That means that the creditors need to be able to make payments of over $1 trillion to vendors.  It's a staggering amount.

 

The way that credit card companies can pay out your purchases is by using their own cash assets, or by enticing investors to put money in.  The latter is how they make an ABS or an Asset-Backed Security.


So far you have no proof at all that secured card is bucketed.  I have seen CapOne secured cards graduate and grow.  

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2 hours ago, maverick9 said:

Ah okay. Kind of like a secured credit card. I can do that. 


You have decent cards already.  You do not need a secured card.  With the 💩already reporting on your credit reports from the 2016 fiasco, what you need is time so that evidence of that falls off.  
 

Even if you do go for a secured card, you will not find a decent one that allows a $25k limit.  IIRC, Bank of America and US Bank only allow a maximum of $5k.  

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2 hours ago, maverick9 said:

...

 

Should I go for a 2nd NFCU card for the 25k card or another CU? If another CU, which ones are beloved here? 


I have yet to see any CU as generous as Navy.  
 

Get your CLIs first.  Then, once you see how it goes with INQs, look at a new card perhaps.  
 

Although INQs are not as important as many believe, in your case they probably are important as you still have 💩 stains on your credit reports from the 2016 fiasco.  Now, you can paint it that you did settle and not file BK and that is all well and good, but it's extremely unlikely potential creditors will see that pretty picture when deciding whether or not to give you more credit.  They will look at it like 💩 is 💩 is 💩.  Take it easy.  You are not going to win a race with a broken leg.

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46 minutes ago, PotO said:

So far you have no proof at all that secured card is bucketed.  I have seen CapOne secured cards graduate and grow.  

I don't think I've said that.

 

You may have been confused about Securitization with C1 secured credit cards. They are not the same. @maverick9 also got the wrong concept!

 

You're correct about showing C1 responsible usage and they’ll reward you with way higher SL on new apps. Then just close or merge limits!

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3 minutes ago, MP80 said:

I don't think I've said that.

 

You may have been confused about Securitization with C1 secured credit cards. They are not the same. @maverick9 also got the wrong concept!

 

You're correct about showing C1 responsible usage and they’ll reward you with way higher SL on new apps. Then just close or merge limits!

 

His secured card graduated.  Securitization is no longer an issue.  My daughter's CapOne secured card graduated long ago and now has a $22,000 limit.  

Edited by PotO
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1 hour ago, PotO said:

All credit card issuers that I have seen have a maximum limit on their secured cards.  Which have you ever seen which will allow $25k?

@cashnocredit says he applied for the $25K secured card from Wells Fargo Bank when he was rebuilding his credit. (probably 10 years ago) 

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36 minutes ago, MP80 said:

@cashnocredit says he applied for the $25K secured card from Wells Fargo Bank when he was rebuilding his credit. (probably 10 years ago) 

  On 11/3/2020 at 8:04 AM, @cashnocredit said:
However, you are very fortunate to have  a large cash position. The fastest way to improve not only your scores but your attractiveness to an issuer, is to also increase the CLs and usage.  I had a similar problem 10 years ago so I opened two secured CCs. One for 10k and one for 25k.  Not everyone can do that but for those that can, like you, it tells banks that you actually have significant assets just from your credit report.  Do that then use the cards.

 

.................................................................................................................................

 

 

I'm not sure if the issuers are Wells Fargo Bank, Citibank, or others, you need to ask @cashnocredit.

 

 

 

 

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25 minutes ago, MP80 said:

  On 11/3/2020 at 8:04 AM, @cashnocredit said:
However, you are very fortunate to have  a large cash position. The fastest way to improve not only your scores but your attractiveness to an issuer, is to also increase the CLs and usage.  I had a similar problem 10 years ago so I opened two secured CCs. One for 10k and one for 25k.  Not everyone can do that but for those that can, like you, it tells banks that you actually have significant assets just from your credit report.  Do that then use the cards.

 

.................................................................................................................................

 

 

I'm not sure if the issuers are Wells Fargo Bank, Citibank, or others, you need to ask @cashnocredit.

 

 

 

 

 

Maximum with Well Fargo is $10k.  Citibank is $2,500.  

 

Many secured credit cards do not report as secured so in that case nobody can see you have assets backing up the card except for the issuer.

 

Also, the vast majority of credit decisions are automated.  It's absurd to think that any potential creditor will have a human look and see "Gee, this guy has $25k in cash on deposit to back up his Unicorn Secured Card".  It will never happen.

 

While it will help as a pry bar, considering he has a shiatty stain all over his credit reports now as it is, his AmEx is probably the best pry bar he can hope for right now.  

Edited by PotO
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5 hours ago, maverick9 said:

August 1 payment will put me below $44,925. Perfect timing! I presume your telling me this so I am under 60% which helps util? 

Attention to detail is very important in the credit game. If the key were to be under 60%, I would have said $45k, not $44,925.

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7 hours ago, PotO said:


Oh, so the plot thickens!!

 

Even though an event doesn't still report on your credit reports, creditors have a long memory -- especially AmEx which has the memory of an elephant.  They will remember your previous default until hell freezes over.

 

There's no fooking way they will give you a CLI to $28,500 now or in the near future no matter what you do.  It would be a miracle if they gave you an increase to $15k.  
 

You need to set more realistic goals.  The ones you have now are delusional.  

 

 

I feel like you don't like me.

 

There is no plot either. 

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7 hours ago, PotO said:


Yes, they should fall off around 2/23.  Until then, however, an account marked "settled" or equivalent, is seen by creditors when they access your credit reports.  They will usually hold that against you in one way or another.  
 

What reason did CapOne give you when they declined your CLI request?

So should I just wait till February 2023 to request CLI and apply for new cards? 

 

I don't recall why I got declined from CapOne.

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Quote

You have decent cards already.  You do not need a secured card.  With the 💩already reporting on your credit reports from the 2016 fiasco, what you need is time so that evidence of that falls off.  

So should I wait till 2/2023 to ask for CLI as well as applying for new cards? 

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4 hours ago, shifter said:

Attention to detail is very important in the credit game. If the key were to be under 60%, I would have said $45k, not $44,925.

I don't understand what you are meaning here. 

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46 minutes ago, maverick9 said:

I feel like you don't like me.

 

There is no plot either. 

 

If I didn't like you, it would be made very obvious.

 

Right now, each time you post brings new details to light.  For example, the account that shows on your credit reports as settled.  That tradeline is derogatory.

 

I realize your 2016 events could have been much worse and at least you didn't file bankruptcy.  But no matter how you look at it, those tradelines are derogatory and the vast majority of credit cad companies couldn't care less whether you filed BK or settled for less than the full amount -- it is all derogatory.  I also realize you have made a lot of progress and are not, I hope, likely to repeat what happened earlier, but the stain still lives on your credit reports.  Under the circumstances, I think you'd be lucky to double your limits.

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49 minutes ago, maverick9 said:

So should I wait till 2/2023 to ask for CLI as well as applying for new cards? 

 

Right now I do not think you will get your limits increased significantly, but I think you do have a chance of getting them increased.  Given that you may be able to get away with no INQs, I don't think trying will kill you.  I would try and take whatever you can.  Even a small increase is better than a poke in the eye with a sharp stick.  

 

After you try for the CLIs, see how that goes and then think about a new card or two.  

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5 hours ago, PotO said:

If I didn't like you, it would be made very obvious.

Very well.

 

Quote

Right now, each time you post brings new details to light.  For example, the account that shows on your credit reports as settled.  That tradeline is derogatory.

 

I realize your 2016 events could have been much worse and at least you didn't file bankruptcy.  But no matter how you look at it, those tradelines are derogatory and the vast majority of credit cad companies couldn't care less whether you filed BK or settled for less than the full amount -- it is all derogatory.  I also realize you have made a lot of progress and are not, I hope, likely to repeat what happened earlier, but the stain still lives on your credit reports.  Under the circumstances, I think you'd be lucky to double your limits.

We shall see. 

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5 hours ago, PotO said:

 

Right now I do not think you will get your limits increased significantly, but I think you do have a chance of getting them increased.  Given that you may be able to get away with no INQs, I don't think trying will kill you.  I would try and take whatever you can.  Even a small increase is better than a poke in the eye with a sharp stick.  

 

After you try for the CLIs, see how that goes and then think about a new card or two.  

Sounds good but what should I ask for if this is the case? 2x? 

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16 hours ago, MP80 said:

  On 11/3/2020 at 8:04 AM, @cashnocredit said:
However, you are very fortunate to have  a large cash position. The fastest way to improve not only your scores but your attractiveness to an issuer, is to also increase the CLs and usage.  I had a similar problem 10 years ago so I opened two secured CCs. One for 10k and one for 25k.  Not everyone can do that but for those that can, like you, it tells banks that you actually have significant assets just from your credit report.  Do that then use the cards.

 

.................................................................................................................................

 

 

I'm not sure if the issuers are Wells Fargo Bank, Citibank, or others, you need to ask @cashnocredit.

 

 

 

 

The 25k card was with Citi, 10k with WF.

 

At the time Citi was offering a secured CC that paid 4% APR on the security deposit. Very attractive at the time as it was slightly above market rates for CDs. Irrresistable. The high limit CC came in useful shortly after when I had to charter an air amblence at the last minute  for my mom. Before I had the two cards I just used checks and debit cards and that would have been more problematic.

 

I kept hoping they wouldn't unsecure the card and just keep paying me interest. No such luck. Those were the days. Don't know of anything like that today.

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1 hour ago, cashnocredit said:

The 25k card was with Citi, 10k with WF.

 

At the time Citi was offering a secured CC that paid 4% APR on the security deposit. Very attractive at the time as it was slightly above market rates for CDs. Irrresistable. The high limit CC came in useful shortly after when I had to charter an air amblence at the last minute  for my mom. Before I had the two cards I just used checks and debit cards and that would have been more problematic.

 

I kept hoping they wouldn't unsecure the card and just keep paying me interest. No such luck. Those were the days. Don't know of anything like that today.

@cashnocredit  :wave: I really appreciate your confirmation response to the issuer of the $25,000 Secured Credit Card. 

 

I think these credential certificate deposits issued by Citibank for secured credit card accounts are hopefully and expected to continue to this day.  

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10 hours ago, maverick9 said:

Sounds good but what should I ask for if this is the case? 2x? 


With AmEx it doesn't matter.  They will counter with what they want to give you.

 

With Navy and Discover, they never asked me how much I wanted.  They just gave me what they wanted.  

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