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    • Lauradevon
    • By Lauradevon 18th Sep 19, 7:53 PM
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    Lauradevon
    Capital one card to increase credit score
    • #1
    • 18th Sep 19, 7:53 PM
    Capital one card to increase credit score 18th Sep 19 at 7:53 PM
    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
Page 1
    • zx81
    • By zx81 18th Sep 19, 7:59 PM
    • 23,850 Posts
    • 26,537 Thanks
    zx81
    • #2
    • 18th Sep 19, 7:59 PM
    • #2
    • 18th Sep 19, 7:59 PM
    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.
    • Lauradevon
    • By Lauradevon 18th Sep 19, 8:03 PM
    • 3 Posts
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    Lauradevon
    • #3
    • 18th Sep 19, 8:03 PM
    • #3
    • 18th Sep 19, 8:03 PM
    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!
    • mrboni
    • By mrboni 19th Sep 19, 10:56 AM
    • 7 Posts
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    mrboni
    • #4
    • 19th Sep 19, 10:56 AM
    • #4
    • 19th Sep 19, 10:56 AM
    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?
    • Gary_Dexter
    • By Gary_Dexter 19th Sep 19, 11:14 AM
    • 6,593 Posts
    • 4,418 Thanks
    Gary_Dexter
    • #5
    • 19th Sep 19, 11:14 AM
    • #5
    • 19th Sep 19, 11:14 AM
    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?
    Originally posted by mrboni
    Build your credit history - not the score or rating.

    Use it monthly, pay off in full after each statement. Repeat, repeat, repeat.
    • mrboni
    • By mrboni 19th Sep 19, 11:39 AM
    • 7 Posts
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    mrboni
    • #6
    • 19th Sep 19, 11:39 AM
    • #6
    • 19th Sep 19, 11:39 AM
    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
    • Ebe Scrooge
    • By Ebe Scrooge 19th Sep 19, 12:16 PM
    • 4,399 Posts
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    Ebe Scrooge
    • #7
    • 19th Sep 19, 12:16 PM
    • #7
    • 19th Sep 19, 12:16 PM
    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
    Originally posted by mrboni
    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.
    I may not know much about art, but I know what I like.
    • adindas
    • By adindas 19th Sep 19, 12:26 PM
    • 4,166 Posts
    • 2,636 Thanks
    adindas
    • #8
    • 19th Sep 19, 12:26 PM
    • #8
    • 19th Sep 19, 12:26 PM
    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!
    Originally posted by Lauradevon
    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#topofpage
    Last edited by adindas; 19-09-2019 at 2:10 PM.
    • mrboni
    • By mrboni 19th Sep 19, 12:29 PM
    • 7 Posts
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    mrboni
    • #9
    • 19th Sep 19, 12:29 PM
    • #9
    • 19th Sep 19, 12:29 PM
    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?
    • adindas
    • By adindas 19th Sep 19, 12:44 PM
    • 4,166 Posts
    • 2,636 Thanks
    adindas
    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?
    Originally posted by mrboni
    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.
    Last edited by adindas; 19-09-2019 at 12:47 PM.
    • Gary_Dexter
    • By Gary_Dexter 19th Sep 19, 12:46 PM
    • 6,593 Posts
    • 4,418 Thanks
    Gary_Dexter
    If you're paying the balance off in full each month then it doesn't matter how much you spend on it
    • mrboni
    • By mrboni 19th Sep 19, 1:40 PM
    • 7 Posts
    • 0 Thanks
    mrboni
    Thanks all
    • adindas
    • By adindas 19th Sep 19, 2:13 PM
    • 4,166 Posts
    • 2,636 Thanks
    adindas
    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.

    .
    Originally posted by Ebe Scrooge
    What about very near to the credit limit (say about 95%) but you always clear the statemented balance in the following month by DD ??
    • Gary_Dexter
    • By Gary_Dexter 19th Sep 19, 2:16 PM
    • 6,593 Posts
    • 4,418 Thanks
    Gary_Dexter
    What about very near the credit limit (say 95%) but you clear the statement balance in the following month by DD ??
    Originally posted by adindas
    Then for month A. it will show you used 95% of the balance (say 1400) and this was the statement amount.

    Then come month B. it will show that you paid off the 1400, thus cancelling it out.

    Utilisation is only "bad" if you continue to carry a balance month on month without clearing in full.
    • Ebe Scrooge
    • By Ebe Scrooge 19th Sep 19, 2:20 PM
    • 4,399 Posts
    • 3,944 Thanks
    Ebe Scrooge
    What about very near to the credit limit (say about 95%) but you always clear the statemented balance in the following month by DD ??
    Originally posted by adindas
    In theory it shouldn't matter if you use 100% of the available credit, so long as you pay it in full every month. There is a school of thought that says a very high credit utilisation may make you appear reliant on credit for day-to-day living, and hence reflect negatively on your history - whether that's true or not I really don't know. The reason a "buffer" is often recommended is that if, for whatever reason, you don't clear the full amount one month, the resulting interest won't push you over your credit limit.

    But you're right, in theory there's no problem with using all of your available credit.
    I may not know much about art, but I know what I like.
    • mrboni
    • By mrboni 19th Sep 19, 2:56 PM
    • 7 Posts
    • 0 Thanks
    mrboni
    In theory it shouldn't matter if you use 100% of the available credit, so long as you pay it in full every month. There is a school of thought that says a very high credit utilisation may make you appear reliant on credit for day-to-day living, and hence reflect negatively on your history - whether that's true or not I really don't know. The reason a "buffer" is often recommended is that if, for whatever reason, you don't clear the full amount one month, the resulting interest won't push you over your credit limit.

    But you're right, in theory there's no problem with using all of your available credit.
    Originally posted by Ebe Scrooge
    And just to clarify, as far as you know I could just spend & pay off 50 or so monthly rather than something much larger, and still gain the same benefit in credit history?
    • Willing2Learn
    • By Willing2Learn 19th Sep 19, 2:59 PM
    • 4,433 Posts
    • 3,985 Thanks
    Willing2Learn
    … I could just spend & pay off 50 or so monthly rather than something much larger, and still gain the same benefit in credit history?
    Originally posted by mrboni
    As long as you use the available credit each month (any amount within your limit will do), and then pay off the statemented balance in full, before the due date...then your credit history will improve as you proving an ability to successfully manage a credit account
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • mrboni
    • By mrboni 19th Sep 19, 3:07 PM
    • 7 Posts
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    mrboni
    easy peasy! :P
    • Ebe Scrooge
    • By Ebe Scrooge 19th Sep 19, 3:18 PM
    • 4,399 Posts
    • 3,944 Thanks
    Ebe Scrooge
    easy peasy! :P
    Originally posted by mrboni
    Yep. We see many, many posts on here asking about the best way to improve one's credit history (well, people usually erroneously ask "how do I increase my score"), and the answer is almost always "sensible use of a credit card over a number of months".
    I may not know much about art, but I know what I like.
    • Gary_Dexter
    • By Gary_Dexter 19th Sep 19, 3:54 PM
    • 6,593 Posts
    • 4,418 Thanks
    Gary_Dexter
    And just to clarify, as far as you know I could just spend & pay off 50 or so monthly rather than something much larger, and still gain the same benefit in credit history?
    Originally posted by mrboni
    Yes. You could spend 1 and it wouldn't make a difference.

    Any reference to having a "high utilisation" only applies to those carrying a balance or "techniques to improve your score" (twaddle).
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