Once again, I must put the business model of Capital One into question. I own a business so I naturally have that kind of mentality when I consider seemingly counterproductive behavior from companies....even large successful ones like Capital One.
If I was a higher up at Cap1 with a seat at excecutive meetings and the ear of the CEO and/or VPs, matters like this would be on my mind and I would do some real investigating into it to see the true benefit to the company's growth and make serious reccomendations. Perhaps it's been done already and there is a logic to it but I'm quite skeptical.
+1 ITA I know they're a successful and profitable bank. Still, I question their business model. I believe they could be even more successful and profitable if they would allow sub-prime cards to grow based on the improved credit history of their customers.
Cap One wouldn't increase my piddly $500 and $750 CLs. Yet, Chase gave me $3k, Amex CLId to $6k, Barclays just gave me $5k. I mean, really. How much sense does it make to lose a customer like that? If they'd just CLI me, I wouldn't have cancelled my card. I'm only keeping my $500 one for one more year because there's no AF.
Back in my subprime days, I cancled a capitol One card with a 500 CL after aksing for a CLI and I didn't really need. If I had been a little smarter I would have left it alone since it would have been over 8 years old today. Then again if I was really smart I would have never got it in the first place.
If you have one, and there is no AF, just let it help your AAoA and a MR and a zero balance CC.
Above all else, people should remember this:
Even with their prime products out there, Cap1 is cornering the sub-prime credit market...and doing so in a very, very profitable manner. Sure, it frustrates those who use Cap1 products and want the product to grow with them, but think about it from Cap1's POV for a moment. How many $300-500 CL sub-prime borrowers will stop paying them after a while? Would YOU want to bump those folks up (even after a year) to, say, $1,000-2,000 CLs...only to have many of those sub-prime borrowers leave you holding the bag?
Cap1 has found a successful business model that is allowing it to gobble up its competitors. Though it may be frustrating for some, we would do well to remember that they want to minimize the potential for loss just like every credit card company.
I often wonder why Discover, even though I am more than 2 years clear of BK and with scores at the 700 level, won't even give me a starter $500 CL card. Ditto Citi, AMEX, BOA, Chase, etc. With the exception of the BK, my reports are clean...no lates, no other baddies...AAoA 10 years.
Why won't they? Because even though I am a diminishing credit risk, their business models, for the most part, do not include those with BKs on their records. Does this honk me off? Heck yeah it does. Do I understand it? ABSOLUTELY.
Disclaimer: Cap1 has been very good to me. They waive my AF each year, increased my steps card to $1,500 and lowered my interest rate to 16.9%. But then again, I use the h*ll out of them. I'm sure there are those who use their Cap1 cards a lot, but I have to wonder just how many people who complain about Cap1 not growing don't give them the time of day save buying a stick of gum to keep it open. I then read how these same people are running thousands through an AMEX Zync with a 500 hard cap and paying multiple payments during that time. AMEX grows with them, Cap1 doesn't. Is it any wonder why that is?
Of course, this is all YMMV. Using the card doesn't guarantee it grows with you. But I have to believe that it played a role in my case, for what it's worth.
I think it's unfortunate that they bought out the HSBC accounts. I made it a point not to do business with Capitol One a long time ago and have always stuck to that decision, now it seems, I am being forced into it. I suppose I will leave the two cards open as long as they don't make any changes to my accounts.
A propos to this discussion about Capital One's protocol and policies and pissing off prime customers, vastly improved customers and totally shielding people from real decision makers who can actually do something:
I just got my Spark card it has a paultry limit. And well, read on: (comment #52)
Just because they don't tend to over raise limits enough or at all, doesn't make them bad. They allow us to rebuild, and to rebuild, you don't need high credit limits. Paying a mere $50-75.00 a YEAR is nothing for allowing someone to have a revolving credit account, to build credit history once again. Most people spend 4X times that amount at Dunkun Donuts every year..........
I'm thinking of canceling my CO card. I have called for a APR decrease. It is 19.8%. I have had this card for over 20 years, have a 779 Credit Score, and have not carried a balance for over 3 years. (My balance has been less than $100 each month). When I inquire, they tell me they can give me an intro rate for 7 months (15.9%) but not permamently....UGH
I do not pay a annual fee. I wonder if it is better to keep it open, but never use it so it does not affect my score. It is my oldest card. I do not carry balances on my other card (Amex) either!!! More of a pride thing, than actually needing it.
Gotta go with the stock answer for anything concerning Capital One: email the CEO. The people from the executive office will get in contact with you and take things from there.
That was the only way I could get a limit increase on my Journey card. I fired off the email on a Wednesday afternoon, got a call back from the EO early Thursday afternoon, and got the limit increase Friday morning. They won a ton of brownie points for their swift response time.
Really, you have nothing to lose.