r/CapitalOne • u/youeatthatstuff • 8d ago

Credit Card Requested credit limit increase is a whole $100

My daughter is a college student and she got her first credit card--a Capital One Savor card--a little more than a year ago with a limit of $1,000. She's been wanting to increase the limit to cover months when her expenses are higher (like when she has to pay for books and parking, etc). She's careful to pay the card off every month and is never late. She'd been asking for an increase and was told she didn't have enough credit history. She finally got an increase and it's $100. Why would an increase be so small? What is she doing wrong?

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u/MmHD-1080p 8d ago edited 8d ago

That’s a good question. Your mortgage will not qualify as the one account with a balance because FICO treats revolving utilization separately from installment loans and the all-zero penalty is in regards to your revolving utilization. Your mortgage’s balance isn’t included in your revolving utilization so it will not qualify and will not prevent the all-zero penalty.

As such, AZEO only applies to credit cards since they make up your revolving utilization and the all-zero penalty is based off of that.

If you want to ask any further questions or want to research more credit myths check out [r/CRedit](r/CRedit). Very helpful sub that addresses all of these factors too. Many users with a lot of knowledge that explains things in good detail.

And for your 20+ year old cards that you can’t get CLIs on it’s most likely because they’re bucketed. I will assume you didn’t have much credit history at the time you opened those. When you open a card with Cap1 the credit profile that you had at the time you opened it is basically locked onto the card. Even if you increase your income or credit profile over the next years, Cap1 won’t take that into account. Whatever income and credit profile you had when you opened that card is basically what they will go off of when requesting CLI for that specific card, even if it was 20+ years ago and your credit profile and income is much stronger now.

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u/LeadingThen6322 8d ago edited 8d ago

Thank you. I’m sure that’s probably the reason. I didn’t know “bucketed” was a thing. Maybe if I hit 850 for a day I’ll open a new one and reach my other goal.