Hey guys

So, my credit history *just* started back in January of 2010, with my first car. I scored an amazing deal on a used Scion Xb, which as a dude, I wasn’t too key on getting a box car, known for containing annoying girls texting. Hah. Great car though, honestly is. Anyways, as that was my first action of credit, I realized I had to get a credit card for the only purpose of enhancing my credit. I don’t need the extra money, in fact I don’t see a credit card as "extra" money in the first place. But I got a mastercard from Capital One in August of 2010. Ever since getting the card, not only have I never missed a payment, but I pay it off in full every month. It worked great, and at 20, I had a credit score of I’m pretty sure 690 ish. The only reason it wasn’t higher, is because well, I’ve just started getting credit.

As of now though, I have the same mastercard. The APR is insanely high, I thikn about 18-22%, thus why I always pay it off in full. However, this year I did try to get a new credit card, due to trying to get a lower APR, and in January for some reason my credit dropped to 655. I also applied for an apartment, and a refinance on my car. I wasn’t planning on refinancing my car, just wanted to know what I’d be looking at if I ever had to. Lady didn’t tell me afterwards that she had to put a hit on my credit. Boo. So I got all those hits on my credit, and it struck me today. My card is only a limit of 0. If I have a MAJOR car repair, I can’t fix anything with that amount. Sure I have about 0 in savings, but I can’t afford being without a car. So I’ve decided to either A) Raise my limit, or B) get a second card. I know how to raise my limit, call the company, answer their 20 verification questions, listen to their deals etc. then ask. But I’m wondering if I should. Is it better to ask for a raise of limit to someting maybe even as high as 00, or to get a new card? If my credit was 655 back in Jan. Feb, would all those hits for that new card, the apartment, and the refinancing have hurt my score? I also kind of sort of had a high balance this past few months. of course I still pay it off to 0 monthly, but I know if your balance is over like 40% your credit drops…

Sorry, I know this is a blurb of incoherent blabber so I will try and make it concise:

If my credit score is about the 650, 660-ish range, should I:

A) try to get a new card in entirety,

B) try and raise my limit

C) Is free credit report worth? I did it last time to find out my score, charged me a dollar than I had to call in and cancel it, always a hassle.

d) How much does a hit on your credit usually deduct?

Thanks guys, I really appreciate it!
Ok. Thats what I was thinking. I think I’ll just bite the bullet and do freecreditreport.com to see what it is, just so I can know where I stand. Hopefully my credit has gone back up to the 700s. I wasn’t expecting anything better than like 0 or maybe even 00 from increasing my limit. I am aware .5k is a stretch. Thanks though!

One Response to “Quick question on increasing my credit limit…?”

1. Use Your Noodle Says:
   June 25th, 2011 at 9:05 pm

   Even though you pay your bill in full every month, Capital One is not going to increase your limit by 1k.

   You have too many inquiries in a short amount of time, and I doubt you are going to be approved for another card that has an interest rate you would be comfortable with.

   Anytime you ask for an increase, or even inquire about a loan, they are going to pull your credit. They have to. How else would they know if you meet their requirements?

   As for how many points it costs you to have your credit pulled, it depends. There is no set amount. The problem you have is, you have such a limited history, that even 1 hit may take you down enough to notice a sharp drop.

   The most I think Capital One would raise your limit is maybe to $750.

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