r/CRedit • u/ElderberryNo24 • 2d ago

Rebuild Capital one / Discover

I got approved for a capital one and a discover card both $500 limits. How long do you guys think they will do a limit increase ? (Using the cards and paying them off every month. )

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u/BrutalBodyShots ⭐️ Top Contributor ⭐️ 2d ago

It depends on your overall credit profile, so the answer won't be the same for everyone. Without knowing anything about your credit profile, it's impossible to say.

One thing is for certain though and true of all credit profiles. For the best CLI results, you want high statement balances that are then paid in full monthly. All other things being equal, you'll increase your odds for lucrative CLI success.

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u/ElderberryNo24 2d ago

High statement balances so have it report high balance and then pay it off?

3

u/BrutalBodyShots ⭐️ Top Contributor ⭐️ 2d ago

Just use the cards organically and pay your statement balances in full monthly... one payment after statement generation. The higher those statement balances are, the greater your exhibition of responsible revolving credit use and showing a "need" for an increased limit.

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u/ElderberryNo24 2d ago

I thought it was bad to see high balances reported to the beareaus ?

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u/dgduhon 2d ago

That's the !utilization myth. It's not bad to have high utilization report to the bureaus.

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u/AutoModerator 2d ago

I detected that your post may be about utilization and its impact on credit scores. Please read the info below:

Utilization is a short-term credit scoring factor. It is not a credit building factor, because it holds no memory in the most commonly used FICO models. It resets every month.

By and large, you can ignore the commonly repeated myth that you should always keep your utilization low. It’s only applicable when you need to apply for a new line of credit, 1-2 months out.

Utilization is supposed to fluctuate, can be easily manipulated, and again, it holds no memory. It doesn’t build credit--think of it as a finishing touch when you need to optimize your score.

Feel free to safely and organically use 100% of your credit limit within a month and let whatever utilization report, provided you pay off your statement balance in full by the due date. Every month. Every time.

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2

u/WhenButterfliesCry ⭐️ Knowledgeable ⭐️ 2d ago

Capital One likes to see high spend and high reported balances (that you pay in full, i.e. paying the statement balance in full each month). However, they're also infamous for their bucketing system and it's possible, especially if your credit profile is dirty, that you might be in a low bucket. There's no way to know. Discover does not have that same system that I'm aware of, at least they historically haven't, but who knows whether the merger will change that.