My next credit line increase?

[mcmillan]

The last time I received a CLI from Capital One was in Feb of last year. That was my first increase of $100 (wow). I never had a late payment with them…when will I be eligible for another one?

[fontanaman]

I had this card for more than 2 years and like yourself, I only received a $100 increase (never a late payment). Do not expect to receive any more increases. This is a great card for establishing credit, but once you’ve done that you need to move on to better cards. They do not make an effort to keep you as a customer when your credit improves. That’s why I closed my account and applied for better cards elsewhere.

Let me give you a tip. When you decide to close this card and apply for a better one, bring your deposit up to the highest amount you can afford, let the card report your new credit line to the credit bureaus and then apply for a new card (you can then close the CapOne card and get your deposit back). Banks will try to offer you cards with at least the same credit limit you have with other banks. If you have cards in the $500 range, they’ll most likely offer you a card around that same credit limit.

[mcmillan]

Thanks Fontanaman, great advice…I would think after more than a year of timely payments I would get another increase, but I did hear Capital One are pretty cheap with that. What can you expect from a company that doesn’t graduate their secured cards…

[fontanaman]

That’s what I thought as well, but believe me, they are not interested in rewarding customers at this credit level. I really tried hard to get my card unsecured after having it for two years. I talked to different people, sent letters over the mail and through planetfeedback. I was always told it was not possible, they do not unsecure. I was never late, never went over my limit and my credit score went up to the 700’s.

Looking back, I’m now kind of glad I went elsewhere. I now have a rewards card with Chase and their customer service is top notch. They gave me a good credit limit, then increased it (not to mention they gave me $150 credit for my new account). Calling them is super easy and their online features are awesome. The other day I lost my wallet and had to call and cancel my card. I did it all through an automated service over the phone. Took me a couple of minutes and my account online was immediately updated. I had the new card in 5 days. They also refinanced my car loan, gave me a better rate, etc.

Capital One’s secured card is definitely useful, it helped my credit a lot when nobody was willing to give me credit. But as I said, once your credit improves, you can apply for a better card somewhere else (or even for a better card with them).

Do you have any other cards? I found that having a second card was of great help as well (I also had a BOA secured card back then).

[mcmillan]

Yes, I have a few unsecured cards, including a Macys and Victoria Secrets store card…I will take your advice and up my deposit, but I’m really scared to close the Capital One because its my oldest card…I know down the line I will hafta close it…I think I will try to apply for an unsecured card thru my credit union…

[fontanaman]

I had the same concern, as it was my oldest card as well. Closing it did not affect me at all so I can say it’s not a big deal, specially if you have other cards. I had another secured card as I mentioned, and opened a new credit card account with a higher credit line.

Closed accounts in good standing will stay on your report for 10 years, so it’s all good!

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