Capital one card to increase credit score
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Lauradevon
Posts: 3 Newbie
Hiya, I'm not sure if I'm posting in the right place but I just need some advice. The other day I applied for a capital one credit card, the application was initially declined but I have now received an email which says I was accepted and to set up my online account, and have received a pin number in the post.
Would it be advisable to use it? I only want to use it for small transactions to improve my credit rating.
Thank you
Would it be advisable to use it? I only want to use it for small transactions to improve my credit rating.
Thank you
0
Comments
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Use it regularly and clear in full each month, once you get the statement.
It will improve your credit history and how lenders view you. The credit scores the CRAs give you may drop, but that's ok, as they're just a gimmick that only you see.0 -
Thank you! That was what I wanted to do, I was just a little confused with them declining and then accepting it but I will use it wisely!0
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I'm doing the same thing - trying to build credit rating using a Capital One card.
I just received a card with a £1500 limit. What would an ideal spending pattern be with the card? How do the amount spent and frequency of purchases show up on the credit report?
And is the best time to pay the balance as soon as I have received the statement, rather than as soon as possible after purchase?0 -
I'm doing the same thing - trying to build credit rating using a Capital One card.
I just received a card with a £1500 limit. What would an ideal spending pattern be with the card? How do the amount spent and frequency of purchases show up on the credit report?
And is the best time to pay the balance as soon as I have received the statement, rather than as soon as possible after purchase?
Build your credit history - not the score or rating.
Use it monthly, pay off in full after each statement. Repeat, repeat, repeat.0 -
sorry yes - history
Anyway, I was wondering more about the detail of usage. Do the size and frequency of payments make a difference?
3 hypothetial scenarios -
- 1 payment of £50 each month
- 1 payment of £500 each month
- 10 payments of £50 each month0 -
sorry yes - history
Anyway, I was wondering more about the detail of usage. Do the size and frequency of payments make a difference?
3 hypothetial scenarios -
- 1 payment of £50 each month
- 1 payment of £500 each month
- 10 payments of £50 each month
The size and number of transactions on your statement are largely irrelevant. It's a good idea not to run the card up to (or very near) its limit, but as long as you keep the amount on the card below about, say, 85% or so of the limit, you'll be fine.
The main thing is to pay the full balance on time, every month. Make sure you pay AFTER the statement arrives, but BEFORE the "due date" - you'll typically receive the statement about 2 weeks before the due date. The safest way is to set up a Direct Debit to automatically pay the full amount.
You can pay the card off before the statement arrives if you want. However, if you do that then you're losing the benefit of building up a favourable credit history - on your credit files it'll look like you're not using the card.
Just use the card for everyday spending, stuff you'd buy anyway (fuel, groceries etc.). Pay it off in full every month, and you'll begin to build up a history of responsible borrowing and repayment - which is what any future lender wants to see.0 -
Lauradevon wrote: »Thank you! That was what I wanted to do, I was just a little confused with them declining and then accepting it but I will use it wisely!
Do not get surprised with Capital One.assessing credit worthiness.
The example here when people asking credit limit increase. In many cases they will reject it but they might approve your application for a new credit card with higher limit. It is difficult to explain how they assess the people credit worthiness
https://forums.moneysavingexpert.com/showthread.php?t=6048915&highlight=
https://forums.moneysavingexpert.com/showthread.php?t=5520149#topofpage0 -
Thanks, this is really useful
Regarding these comments -
"The size and number of transactions on your statement are largely irrelevant." and "Just use the card for everyday spending, stuff you'd buy anyway"
I'd rather keep that spending on my debit card as I'm using a budget tracking app that doesn't yet support Capital One. If I just used the CC for one small payment a month would I be getting maximum benefit?0 -
Thanks, this is really useful
Regarding these comments -
"The size and number of transactions on your statement are largely irrelevant." and "Just use the card for everyday spending, stuff you'd buy anyway"
I'd rather keep that spending on my debit card as I'm using a budget tracking app that doesn't yet support Capital One. If I just used the CC for one small payment a month would I be getting maximum benefit?
I am not quite sure about Capital One but I have been doing that with Barclay, HSBC Credit Cards for years and a few occasion they inform me about the limit increase. most of the time the balance is lower than £20 a month Also I keep getting 0% new BT CC.
But the point here is to keep good history money keeping which is important for future lenders.0 -
If you're paying the balance off in full each month then it doesn't matter how much you spend on it0
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