What Should I Expect After I Apply Online
- Once you apply online you will receive an application ID and a phone number you may call to check the status of your application if you are not instantly approved.
- If you are not instantly approved, we will mail you a credit decision within 5 to 7 business days.
- If you are approved, you will receive a mail package with information intended to help you better understand your credit report and a copy of the applicable Wells Fargo Privacy Notice. Your credit card, additional information on the card features, and terms of the account will be arriving in a separate mailing soon afterwards.
- If you are not approved for a new account, you will receive a written explanation of why we were not able to grant you credit at this time.
Why You Should Keep Track Of Credit Utilization
Say you have one credit card with a $22,000 limit and a $2,000 balance. Youre using about 9% of your available credit, which looks good for your credit history.
But say you have that same balance on a card with a $6,000 limit. Youre using one-third of your available credit. Thats not bad, but it doesnt look as great.
Making payments on time is a more important factor in calculating your credit score, but utilization rate has up to a 30% impact on your score.
Are you holding your credit card right now? Feeling nervous, wondering if you can trust yourself in the great sea of stuff you could buy and bills you could pay?
If having a new, larger credit limit makes your stomach drop, dont call to get your limit reduced. Dont just close the card, either you dont want to give up the years of credit history youve gained from that card.
Instead, acknowledge the change in your account, then set your own personal limit and keep credit utilization in mind.
No one ever said you had to max out your credit card. So pick your own credit limit, and make it far less than whatever the credit card company says it is. If you have a $4,000 limit, dont use more than $500. If its a $12,000 limit, maybe your personal limit is at $2,000.
Challenge yourself to see how low your balance can go.
Lisa Rowan is a writer and producer at The Penny Hoarder.
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Why You Might Want To Increase Your Credit Limit
One of the more common reasons why you might increase your credit limit is to reduce your credit utilization ratio the amount of credit youre using relative to your total credit limit.
If the total amount of credit youre using is approaching your total , your credit score could suffer. This is because your credit utilization ratio can be an important part of your credit score.
A higher credit utilization ratio may have a negative impact on your score, as it suggests to the issuer you may be close to maxing out your credit cards. For example, your income may have grown and, simultaneously, your monthly expenses have risen, therefore the current credit limits on your cards may accommodate this increased cost of living as well as before. In this case, increasing your card limit may prevent your credit utilization ratio from creeping up.
Additional reasons to increase your limit may include:
- Access to credit for emergency situations
- Opportunity to earn additional rewards on credit card purchases
- Simplify making larger purchases such as vacations, furniture or home renovation
Read Also: What Bank Does Cabelas Visa Use
Which Secured Card Is Right For You
There are a few things to consider when choosing a secured credit card: how much is the required deposit, how do you transition to an unsecured card and can you earn rewards?
One strong secured card option is the Discover it® Secured Credit Card, which requires a $200 deposit but comes with some good perks. You can earn rewards , there’s no foreign transaction fees and there’s no annual fee.
If you’re looking for a card that requires a smaller deposit, you might want to consider the Capital One® Secured Mastercard®. If you qualify for the low $49 or $99 deposits, you’ll still receive a $200 credit limit.
Ensure You Dont Use 100% Of Your Credit Limit
While you should use your card to make maximum payments, do not spend 100% of your credit limit. If you spend 100% then Banks see you as a âcredit hungryâ customer and will be careful in the future if you ever apply for a loan or another credit card.
As mentioned above, the credit limit of your secured card depends on the amount of the FD you created as a security collateral for the card. The higher the FD amount, the higher your credit limit. So another thing you can do if you have an idea of your monthly spending levels is then make sure the limit of your secured card is higher than that, i.e. open an FD with a higher amount.
Recommended Reading: How Do I Pay My Cabela’s Credit Card
It May Help The Card Issuer With Retention
The battle for credit card market share is fierce. Card issuers obviously want as many cardholders as they can get, because the more they have, the more revenue they can generate from them.
Raising your credit limit gives you one more reason to stick around and continue using your card. Issuers don’t want you to move to another card if they can help it.
How To Increase Your Bank Of America Credit Limit
You can request a credit limit increase by logging into your Bank of America online banking account and filling out a questionnaire.
To see if youre eligible for an online request, select your credit card account, then select Request a credit line increase under Card Details in Account Summary. If your account is not eligible for an online request, call the number on the back of the card to speak to a representative. This can, at the least, help you understand how to improve your odds of approval.
Be prepared to provide information to Bank of America like the exact credit line increase amount you want and total income and monthly housing payment amounts. Bank of America may automatically approve the increase via computer evaluation or you may have to wait to receive approval after a manual review. Either way, you should receive details of the banks decision and, if your request is denied, some indication as to why your request was denied.
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Why Someone Might Want A Secured Credit Card
Hero Images / Creative RF / Getty
One of the toughest times to get a credit card is when you have bad credit or no credit at all. The trouble is, you often need a credit card to start building a good credit history, but you also need a good credit history to get approved for many credit cards. If you can’t get approved for a traditional credit card, a secured credit card is an alternative worth considering.
Learn how secured credit cards work and whether one is a good fit for you.
How To Apply For A Secured Credit Card
You can apply for a secured credit card in the same way that you would apply for a regular credit card. They are issued by nearly all of the leading credit card lenders, like Visa, Mastercard, and Discover, and look just the same.
Cardholders can use the card anywhere that the card brand is accepted and may be eligible for perks and rewards. Cardholders also receive monthly statements showing their end-of-period balances and the activity on the card during the specified month. Theyre responsible for paying at least the minimum due, and they pay interest on outstanding balances, which is detailed in the credit agreement.
Secured credit cards may come with an annual feelike on a regular card. They may also impose a few other charges, like initial setup or activation fees, credit increase fees, monthly maintenance fees, and balance inquiry fees. All these can and do cut into the deposit and the amount of available credit, so they bear examining before signing up.
With secured credit cards, you do put up something as part of your agreement with the card company. When you apply for secured credit cards, the card issuer assesses your and credit history through a hard inquiry with a credit reporting agency. It then determines the amount of deposit needed to open an account and the credit line that will be extended.
How Much Of A Credit Limit Increase Should You Ask For
There are multiple aspects to consider when deciding how much of a credit limit increase to request. For example, youll generally want to keep your between 20% and 30% of your available credit. So, you may want to ask for a credit limit increase that will allow you to remain under 30% credit utilization as you use your credit card for everyday spending.
If youre looking to avoid a hard pull to your credit, you may want to ask your issuer if you can get a relatively small credit limit increase with only a soft credit pull. After all, its easier to approve small credit limit increases, as these are less risky for the issuer.
But, if you have a particular purchase in mind or reason that youre looking for a specific credit limit increase, its worth asking for a credit limit increase in the amount that you need. Based on your creditworthiness, your issuer may be willing to approve your request.
Things To Consider When Seeking A Higher Credit Limit
How this can affect your credit scores. Sometimes, requesting a credit limit increase may result in a hard inquiry on your credit report, which can temporarily lower your credit scores by a few points. If youre planning to initiate that conversation with your credit card issuer, find out the issuer’s policy first, and time your request carefully so it doesnt affect other loan or credit card applications.
How a higher limit might affect your spending habits. If you keep your spending at the same level as before, a credit limit increase can work in your favor. Thats because your credit utilization the amount of your total credit that you’re using will decrease. Credit utilization is a major factor in your credit scores, so keeping that figure low can help your scores over time. On the other hand, a higher limit can make it tempting to spend more, making it easier to get into credit card debt if you charge more than you can afford to pay back.
Recommended Reading: Cabelas Credit Card Approval Odds
Limitations Of Secured Credit Cards
- They require you to leave your money on deposit you can’t touch it.
- They may charge high fees.
- The issuer may perform a hard credit check when you apply, which can ding your credit score.
- You have to be careful about how much you charge. Another factor in your credit score is the , or the amount you’ve charged compared to the total credit available. Credit bureaus like to see credit utilization of 30% or less. If you have a $200 credit level, 30% of that is only $60, so you can’t charge much before you need to pay off the card.
Opensky Secured Visa Credit Card
Our pick for: No credit check or no bank account
The OpenSky® Secured Visa® Credit Card charges an annual fee, but a lot of people will still want to take a look at it for two reasons. First, there’s no credit check required. Second, you don’t need a traditional bank account you can fund the deposit or pay your bill with a money order or Western Union payment. Read our review.
Also Check: First Premier Bank Gold Credit Card Limit
Do Credit Limit Increases Happen Automatically
Automatic increases are possible for responsible cardholders. Like most other card issuers, Bank of America conducts periodic reviews of credit card accounts to determine eligibility for an automatic credit increase. A credit limit increase can depend on total annual income, monthly housing payment amounts, existing debt, card payment history and more.
Your credit card account must remain in good standing to receive automatic increases. If your income increases, be sure to report it to Bank of America. Always make on-time payments and dont carry a large balance from month to month.
How Do I Track My Rewards Earnings
You can access your Wells Fargo Rewards account in several easy ways:
- Sign on to Wells Fargo Online, and from the Account Summary page the rewards balance will be displayed within the Rewards summary box.
- Or log in directly to wellsfargo.com/redeem. Your username and password will be the same as your Wells Fargo Online username and password. If you have not enrolled in Wells Fargo Online, you will be prompted to do so.
- You may also access your rewards account online via your mobile device by logging into wellsfargo.com/redeem. Your mobile carrier’s data rates may apply.
- You may also call the Wells Fargo Rewards Service Center at 1-877-517-1358 to have your balance provided by the automated telephone system or to speak with a Rewards Representative.
Also Check: Cabelas Credit Card Requirements
Still Not Sure About This Card Consider These Options
If you’re still undecided about getting the Capital One Platinum Secured Card, compare it to other secured credit cards. Consider the Discover It Secured credit card if you want to earn rewards while rebuilding your credit. It offers minimum cash back of 1% and has a lower APR than the Capital One Platinum Secured Card. However, its higher security deposit and lower global acceptance cannot be overlooked.
Can I Get A Secured Business Credit Card
While most banks build secured credit card offerings for consumers who want to build or rebuild their credit scores, a few secured business credit card options can give you access to a revolving line of credit to grow your business.
The Wells Fargo Business Secured Credit Card offers rewards, and you can set your credit limit based on your refundable security deposit of between $500 and $25,000 while paying no annual fee. The card also charges no foreign transaction fee and allows the primary cardholder to have up to 10 employee cards printed at no extra cost.
The BBVA Secured Visa® Business Credit Card charges no annual fee for the first year, but you will find a $40 annual fee after your first anniversary. Cardholders can open their account with a $500 minimum security deposit and make future deposits in $100 increments to increase their credit limits.
Employee cards also come at no additional cost and can feature spending limits and itemized billing on each statement.
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How To Rebuild Credit Program
Today, companies use credit scores to make decisions on credit cards, auto loans, mortgages and even insurance and employment. The higher your credit score, the more likely you are to get approved and pay less for your loan or get hired. Credit scores range from 300-850.
Information about you and your credit experiences, like your bill-paying history, the number and type of accounts you have, whether you pay your bills by the due date, collection actions, outstanding debt, and the age of your accounts, is used to develop your credit score. Your credit score does not include such factors as your gender, race, religion, age, education level or marital status.
Action Step 1:Order a FREE annual copy of your credit report from only one of the three major credit bureaus at www.annualcreditreport.com. Order from only one credit bureau today, order from another credit bureau in four months and from the third credit bureau in eight months. That way youll receive ongoing information about your credit for FREE, every four months. Your credit report is a key to your credit score, so make sure its accurate and up to date. Make sure creditors are reporting correctly and you have not experienced identity theft.
Action Step 3: Pay your monthly bills on time. Payment history is the #1 factor that influences your credit score. If you pay even one bill very late , your credit score can drop significantly. So pay on time, even if you only pay the minimum amount due to rebuild credit.
Capital One Platinum Secured Credit Card
Our pick for: Low deposit
The Capital One Platinum Secured Credit Card requires a security deposit, as do all secured credit cards. But while most cards require you to put down a deposit equal to your credit line, this one allows some qualifying applicants to get a $200 credit line with a deposit of $49 or $99. Further, you can be automatically considered for a higher credit line with no additional deposit in as little as six months. Read our review.
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How Much Will A Secured Credit Card Raise My Score
Its difficult to say how much or how quickly a secured credit card can raise your score. Everyones credit situation is unique.
For example, if youre new to credit and building it from scratch, a secured credit card can quickly give you an excellent boost. On the other hand, if youre rebuilding credit and have negative items on your credit report , the process will most likely be much slower.
Let me share a personal example of how I grew my credit with a secured credit card from fair to good in three years.
Back in 2018, my credit was in a sad place. Id defaulted on two credit cards, had some minor collections spoiling the picture and only one paid-off auto loan to keep my score from sliding all the way down to the poor rating. Credit card issuers werent exactly fighting for my business, but Capital One approved me for the Capital One Platinum Secured Credit Card and so my road back to good credit began.
It wasnt fast, but my credit score was improving. I had some of the collections removed when I paid them off, thanks to the collectors courtesy, and by summer 2019 my credit increased from around 620 to 640.
I used my secured card very cautiously. Originally, my credit limit was $200, although Capital One increased it to $500 after six on-time payments. I mostly put minor charges on the card here and there and paid them off right away to keep my credit utilization low.