Debating Applying Again

[fontanaman]

Yaaaay, congratulations Christie! I know you’ve been waiting for this for some months. I’m glad your work has finally paid off. Yes, I agree, this card will not grow, but at the same time you (we) can take advantage of some of its features.

Usually, other banks will offer you cards with a similar credit limit to the cards you already have. If you close your card later on, if it’s in good standing this information will stay on your credit report for 10 years or longer. So in my opinion, it makes sense that it reports as much credit limit as possible or as much credit as you would like to get later on. Taking this into consideration you (we) could do several things:

1. Keep the same limit and just be happy with the credit history you’re establishing.

2. Gradually raise your limit by making extra deposits, wait at least a year and close the card and get your money back. Apply for a better card.

3. Wait at least a year or until you are ready to apply for a better card, make a big deposit, wait until it reports, then close the card and get your money back without having to wait long. Apply for a better card. Your credit limit will stay on your report even if it was raised only during the last month or two.

As far as the specific amount goes, I’m not really sure. I think it’s more of a personal decision. Just having the card as it is right now and using it responsibly, is going to help you establish good credit history. This is the most important thing. Pay on time, don’t max out your card!

But I agree, having only $200 might not look as good as having say $1000. So, I would put as much as you can, either now or later, without risking your finances If you can put an extra $100 or more, great. I look at it as an investment. Also, if this is your only card right now, it will give you a bit more room. If you plan on using say only 30-40% at any given time, then you are not going to be using your full credit limit.

If you are planning on keeping the card forever, then I would be more careful about putting a lot of money in it.

Hope this helps.

[Amy]

Congratulations, Christie! You are on the road to good credit!

I’ve heard some people suggest putting a $1000+ deposit in order to get higher credit lines from other lenders. On the flip side, Cap One holds onto a larger amount of your money. Deposit what you want now and perhaps increase it if you have extra money you want to put it.

[Christie0909]

Thanks everyone. I think I am only going to deposit the $49 dollars now and do as you suggested and increase it over time. I will only use it for very minor things and pay it in full every month. After seeing how this works for me I may choose to deposit more or leave it.

[fontanaman]

Sounds like a good plan. Keep us posted!

[Author]

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