Cap 1 CLI Denial. Need Strategy Help Please!

JMCB · ‎11-17-2016

So here is the background info.

Approved for QS1 Card on 11/17/15 with a starting limit of $300
CLI on 03/01/16 to $800
Credit Steps CLI on 05/18/16 to $1300 Total Limit.

Approved for Platinum Card on 12/22/15 with a SL of $500

I did a product change to QS. Dont know the exact date.

CLI on 04/01/16 to $1500
Credit Steps CLI on 05/18/16 to $2000 Total Limit.

I run about $2000 to $3000 a month total on both cards and PIF every month.

My scores changed about 2 months ago and I finally have a clean report. My scores went from 500's to low 700s. So I applied for the Venture Card about a month ago 10/15/16. It went for review and they contacted me about 5 days after the application for verification. It took almost two weeks for the whole process and to receive the card. But once I got it, I was approved for $10,000! I was surprised! From a $1300/$2000 Credit line to a $10,000 Card.

Current Problem: So my six months CLI is coming due on both cards. So on my first card ($1300 CL), I logged in and entered my info for the CLI. I got the 2-3 day message. So obviously a denial. I am really surprised. Why would they deny me? Those cards have been PIF every month, and I have a zero balance on all the Cap 1 cards. Especially after they approved me for a $10,000 Venture Card. I have about $100,000 in Credit lines. 13% UTI. No missed payments anywhere on report.

Question 1: So if this was a denial, do I have to wait 6 months to request a CLI on this account?

Question 2: In a few weeks I am eligible for my 6 month CLI on my other QS Card ($2000 CL). Should I request a CLI on that one?

Question 3: I was hoping to combine my two QS Cards after I received CLI on each card. I was hoping for them to increase each card to $5000 and I would end up with one $10,000 QS card after combining. But there went that idea. So what strategy do you guys recommend with combining? Should I do it now and go with the $3300 card or should I wait?

Thank you guys for the advice!

bourgogne · ‎11-17-2016

I have been drinking some really great barolo so sorry I makes me honest. The answer all lies in your sig. lenders don’t like people that app for a lot of cards and that is what you have done. It’s going to be hard to build into high cl’s if that is your intention going the route you have charted. There is is. Want to have a spread of low cl cards then you are on your way. Want to have a high cl and low apr lose a few, sd the rest and hone in on the ones you want to build with. Just my .02 and my god 2010 is a classic vintage

JMCB · ‎11-17-2016

Makes sense. I dont know whats wrong with being honest. I'd rather you tell me the truth then tell what I want to hear. So..... then here my next question. I thought when they did a soft pull, they only pull your score? If my score has increased 100+ points, then how do they know about my new accounts? Or when they do a soft pull, are they actually pulling multiple things from my credit report? I thought that the difference between a soft and hard pull, was the data that they pull. That the hard pull shows inquires, accounts, etc. But I guess I assumed wrong.

JMCB · ‎11-17-2016

Well I just researched a SP and a HP. I guess they are basically the same when it refers to data. They both offer the same amount of information to the creditor. So your probably right on the reason for denial. So where do I go from here? In a few weeks, do I even bother asking for my 6 month CLI on my other account. Should I just go for combining?

bourgogne · ‎11-17-2016

@JMCB wrote:
Makes sense. I dont know whats wrong with being honest. I'd rather you tell me the truth then tell what I want to hear. So..... then here my next question. I thought when they did a soft pull, they only pull your score? If my score has increased 100+ points, then how do they know about my new accounts? Or when they do a soft pull, are they actually pulling multiple things from my credit report? I thought that the difference between a soft and hard pull, was the data that they pull. That the hard pull shows inquires, accounts, etc. But I guess I assumed wrong.

I really appreciate your way of thinking, refreshing. It’s a guess as to the age of their intel or the source. This all really comes down to one’s objective. Those images are really small this time of night but to me I would lose every single store card and concentrate on the ones that will give you larger cl’s. those ones are cap1. I strongly believe that larger cl’s over time will translate into larger sl’s with other lenders. I am sure other will disagree but I think already having a large line and also a low apr will mean more of the same. Yes, there are other factors in play as well. My objective is less cards, high cl’s and low apr’s and my focus is travel. What is your objective?

bourgogne · ‎11-17-2016

@JMCB wrote:
Well I just researched a SP and a HP. I guess they are basically the same when it refers to data. They both offer the same amount of information to the creditor. So your probably right on the reason for denial. So where do I go from here? In a few weeks, do I even bother asking for my 6 month CLI on my other account. Should I just go for combining?

I posted after this. state your objective. that aside if all you did was use your venture it would grow into a monster. you also need to get your util down. you know all this, i am sure of it

JMCB · ‎11-21-2016

Well, I got my CLI Denial letter in the mail today. It actually wasn't for the inquiries or the new accounts. It was because they used an old score for almost 3 months ago (when I was going through student loan rehab). So after searching the forums, it seems this is a common problem with Capital One, them using old soft pulls to do a CLI. They listed my credit score as a 650 in early September, My score is now 751. So my question still goes back to the 6 month rule. Soon they will do a new soft pull, which will be the better score. Since I was denied, does that mean I have to wait 6 months to request another CLI?

Anonymous · ‎11-22-2016

JMCB,

I've had first hand experience with what you're going through and will give you perhaps the best answer. Capital One is pretty unique in how they handle an account when it was opened against a weak profile. What I mean by that is that if your profile is thin, damaged, etc. resulting in low credit scores there is a pro and a con when it comes to Capital One. The pro is that they'll let you in where many other creditors will simply deny you. The con is that after they let you in, they'll treat you like someone that should simply be appreciative that you got in and often won't raise your credit limits or if they do will do so extremely slowly. It's almost as if they "hold a grudge" against you for your profile at the time you were approved, even if your profile improves significantly.

When I was approved for my Platinum card from them, my score was a 619. Today my scores are 750-760 and I either don't get CLIs or get extremely small ones; I've only ever received two $500 CLIs from CO. I also product changed the card from a Platinum to a QS about a year ago, and that made no difference on my ability to receive CLIs or larger CLIs.

I'm 100% confident that if I were to apply for another Capital One card today that I'd get approved and without question with a > $10k limit. They are odd like that and treat the your account based on the data from the beginning of your days with that account. Seemingly 1 account has nothing to do with the other. Based on this information, I'd be willing to guess that those first 2 CO cards that you opened up will receive either no CLIs or very small ones. The card that you got with a $10k SL, you can likely expect CLIs in the thousands and the ability to grow that card quite a bit since it was opened on better terms.

I think when it comes to CCs and Capital One, there comes a time when it's just best to pull the plug on your account(s) with them if they were opened during a time that your credit profile was considerably worse. That's about where I'm at. I've got 4 credit cards on all my reports currently (I don't count Blispay that only reports to 1B) and 3 of them have $24k-$30k limits. The 4th? Capital One with a 4 figure limit that I seemingly can't push any higher. The other 3 were all approvals when I had scores in the 700's, though and have let me grow them considerably.

JMCB you may want to consider at some point transferring the limits from your two earlier CO cards to the most current one you got, if they'll do that. Totally up to you, but I think your chances of growing those two sort of "starter" cards is quite slim based on my personal experience.

UncleB · ‎11-22-2016

There's some good info in this thread so far; I'll only add that as far as I know there's no set period to wait after a CLI denial with Capital One; if you're actively monitoring your reports and see them do the SP you can try again then, or otherwise just give it a few weeks and then see what happens.

I'll also add that I have two Capital One accounts, one of which is quite old (nine years) and started out with a CL of $300. While the newer one (Visa) does have a larger credit line due to starting out larger, since my credit reports got clean back in the spring my CLIs have been just as generous on the old 'starter' card as on my new Visa Signature.

I believe once Capital One refreshes your scores you'll see them be more generous with you as well.

K-in-Boston · ‎11-22-2016

@Anonymous wrote:
The con is that after they let you in, they'll treat you like someone that should simply be appreciative that you got in and often won't raise your credit limits or if they do will do so extremely slowly. It's almost as if they "hold a grudge" against you for your profile at the time you were approved, even if your profile improves significantly.

I think this is quite true for many people. I have been a CapOne customer since 2001 when I first began getting credit (I started a bit late in my mid-20s), and have NEVER received an auto or requested CLI on any cards. I rolled a few cards together back in 2005 and had a "huge" 2500 line for 11 years. Due to their acquisition of a number of other card brands over the years, even after the previous combinations I actually ended up with 4 CapOne cards, 3 of which were originally from other lenders. Late last year, I began aggressively working on my credit profile by getting betters cards, getting CLIs to reduce my utilization (which sat at 75-85% for nearly a decade due to the horrible domino effect of balance chasing and rate jacking during the crash, but I have never had anything negative on my reports other than high util), closing some useless cards, and refinancing mortgage, student loans and one of my auto loans. I have since been paying quite aggressively and have util down to about 20% (28% with AU cards factored in) on revolving accounts.

Because my two oldest CapOne cards had AFs, I decided to roll the other 3 cards into a slightly younger (2005) and slightly higher APR no-AF card that was originally a Direct Merchants Bank account with a $5300 CL, giving me a $9175 CL that I then did a PC to Venture One WMC very early this year. I ran 3-4k through it for a few months and PIF, used it sporadically for a few months - still decline after decline, and they won't budge on the ridiculous 25.24% APR. It's sock drawered right now, but I am seriously thinking about closing the card once my util gets down a bit further. I got other, better cards this year mostly with SLs of $15-17k, and just yesterday got a Citi card with a decent SL and the lowest advertised 12.24% APR so I know I'm not a sub-prime customer at this point, and I do have a very healthy verifiable income.

I hate to lose my account aging even more (in a decade) combined with other 14-16 year old accounts I've closed recently, and all of the newer accounts I've opened in 2015/2016. I have no desire to open another CapOne card to "rebucket" me and the card is pretty useless to me. For both travel and rewards I have much better cards. Maybe I should just stop using it altogether and let it close on its own?