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Cap One CLD

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Revelate
Moderator Emeritus

Re: Cap One CLD


@Sharingan wrote:

@longtimelurker wrote:

Just got a message from Cap One that they are reducing ml CL from $35K to $10K

 

Reasons:

 

- Credit limit(s) are too high -

Current account(s) not used enough -

Balance(s) on non-Capital One revolving trade(s) are too low

 

The first isn't really a reason as much as a restatement of their decision, but I will give them the other two!

 

Still, amused that this might not have happened if I used cards from other banks more!

 

So Cap One isn't exactly maimtenance free

 

 


Sorry to hear, LTL. Do you plan on closing your card from them? 

 

I have a single card with them (Venture) with a 45k limit that I have been checking throughout the day. I wouldn't hesitate for a second to close it if they slash the limit. Fortunately. there is nothing that Capital One offers that creditworthy customers can't obtain elsewhere, including high credit limits. Lastly, I've never subscribed to that absurd and myopic belief frequently repeated on here that Capital One "stands by you," or that their accounts are immune to AA. Hopefully, these reports put that nonsense to rest. 


Not calling you out as I've seen a number of posts on this, but I have to admit to not being smart enough to understand the rationale for closing here.

 

If one wasn't using the card anyway, and the limit is reduced from the two reported instances of 30k+ to 10K, why does it really matter and why does it suggest closing it?  Historically speaking and also statistically speaking a 10K tradeline is still a good one for the overwhelming majority of the population both on the forum and in the American consumer base as a whole.

 

I know I'm an outlier in that I voluntarily took a CLD so my own opinions likely don't match others, but I'm just not seeing the reason to close accounts which are every bit as good at 30K as they are at 10K if they aren't being used anyway?

 

LTL: bleck, sorry it happened bud, even with my not understanding the rationale to close I can still empathize with anyone who a lender takes AA against.




        
Message 21 of 39
AverageJoesCredit
Legendary Contributor

Re: Cap One CLD

Sorry to hear LTLSmiley Sad, I guess in for a penny, out for a pound Smiley Wink ( whatever that means Smiley Wink )

Im sure youll be ok and wish ya the bestSmiley Happy
Message 22 of 39
longtimelurker
Epic Contributor

Re: Cap One CLD


@AverageJoesCredit wrote:
Sorry to hear LTLSmiley Sad, I guess in for a penny, out for a pound Smiley Wink ( whatever that means Smiley Wink )

Im sure youll be ok and wish ya the bestSmiley Happy

Thanks, and yes, just a smallish part of my overall credit so I REALLY don't mind.  

 

ETA: never heard that version of the phrase "in for a penny, in for a pound"  so I don't know what that means either!

Message 23 of 39
Anonymous
Not applicable

Re: Cap One CLD

Dang, looks like a possible new trend. Sorry to hear this, LTL.

 

Kind of makes me wonder, what are they getting ready for. Do they know something about the economy that we don't? We are due for a recession.....

Message 24 of 39
Sharingan
Established Contributor

Re: Cap One CLD


@Revelate wrote:

@Sharingan wrote:

@longtimelurker wrote:

Just got a message from Cap One that they are reducing ml CL from $35K to $10K

 

Reasons:

 

- Credit limit(s) are too high -

Current account(s) not used enough -

Balance(s) on non-Capital One revolving trade(s) are too low

 

The first isn't really a reason as much as a restatement of their decision, but I will give them the other two!

 

Still, amused that this might not have happened if I used cards from other banks more!

 

So Cap One isn't exactly maimtenance free

 

 


Sorry to hear, LTL. Do you plan on closing your card from them? 

 

I have a single card with them (Venture) with a 45k limit that I have been checking throughout the day. I wouldn't hesitate for a second to close it if they slash the limit. Fortunately. there is nothing that Capital One offers that creditworthy customers can't obtain elsewhere, including high credit limits. Lastly, I've never subscribed to that absurd and myopic belief frequently repeated on here that Capital One "stands by you," or that their accounts are immune to AA. Hopefully, these reports put that nonsense to rest. 


Not calling you out as I've seen a number of posts on this, but I have to admit to not being smart enough to understand the rationale for closing here.

 

If one wasn't using the card anyway, and the limit is reduced from the two reported instances of 30k+ to 10K, why does it really matter and why does it suggest closing it?  Historically speaking and also statistically speaking a 10K tradeline is still a good one for the overwhelming majority of the population both on the forum and in the American consumer base as a whole.

 

I know I'm an outlier in that I voluntarily took a CLD so my own opinions likely don't match others, but I'm just not seeing the reason to close accounts which are every bit as good at 30K as they are at 10K if they aren't being used anyway?

 

LTL: bleck, sorry it happened bud, even with my not understanding the rationale to close I can still empathize with anyone who a lender takes AA against.


What's good for the goose isn't always what's good for the gander. I can't speak for any of those other posters, but I will address your question from my own perspective. It may not matter to you, but a Capital One card with a 10k limit doesn't have much value to me, and it's actually as useful as a credit limit of 0 in my case, for reasons I will detail further down. It's not about feeling jilted, being irrational/unreasonable, or even taking a business's decision personally. It's entirely about my willingness to maintain an account that I already found to be marginal. It would be much easier for me to close it out and benefit from the account history for the next 10 years or so with essentially no effort required on my part than it would be to continue monitoring for fraud/making a purchase every so often/ensuring payments post/etc. A 45k CL is a worthwhile account for me to maintain,10k (less than 2% of my overall available revolving credit) not so much if I already don't find the card valuable enough to use more often. 

 

And I am actually curious about your third paragraph. "Trimming fat" has grown into quite the celebration on this forum. Is it no longer acceptable if the decision to close was ultimately triggered by AA from the bank? Closing lightly used credit cards is somewhat congruent with a self-imposed, voluntary CLD anyway, is it not? 



Message 25 of 39
Revelate
Moderator Emeritus

Re: Cap One CLD


@Anonymous wrote:

Dang, looks like a possible new trend. Sorry to hear this, LTL.

 

Kind of makes me wonder, what are they getting ready for. Do they know something about the economy that we don't? We are due for a recession.....


There's multiple things being looked at for the banking sector, the principal timing one that I suspect is triggering this, well I'm not sure which side Cap 1 will fall under but if they do go and re-instate the former split where one had "safe" and "high risk" financial entities it's going to re-landscape the financial sector... again.  Not sure what will happen other than smart money is betting if it does happen that the consolidation we saw post subprime crisis is going to get regurgitated and the large banks will possibly split up in some form or fashion to leverage that rather than all of their portofilios having to comply with the same (and more stringent in the safe insitutions) reserve requirements. 

 

It will be interesting to say the least, but I'm not betting on a recession anytime soon.




        
Message 26 of 39
sarge12
Senior Contributor

Re: Cap One CLD


@longtimelurker wrote:

Just got a message from Cap One that they are reducing ml CL from $35K to $10K

 

Reasons:

 

- Credit limit(s) are too high -

Current account(s) not used enough -

Balance(s) on non-Capital One revolving trade(s) are too low

 

The first isn't really a reason as much as a restatement of their decision, but I will give them the other two!

 

Still, amused that this might not have happened if I used cards from other banks more!

 

So Cap One isn't exactly maimtenance free

 

 


This trend will probably continue...I read where the very high limits awarded to people who never use but a small percentage of the limits, is preventing issuers from doing CLI for people who will use the higher limit, thus providing a greater profit margin to the issuer. The article I read said almost all major issuers are going to start CLD customers who never use even 10% of the limit. It also stated that they are attempting to get fico scoring models to adjust due to the higher utilizations that will result from the CLD. I wish I could remember where I read the article so I could provide a link.

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 27 of 39
sarge12
Senior Contributor

Re: Cap One CLD

Follow up on previous post...let's face it, I and many others do not have 150k or better total CL's so we can put 150k on our credit cards. We request high limits so we can charge 5k on our cards without shreading our utilization. We know what is in a score, and we sort of game the system.

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 28 of 39
CreditCuriosity
Moderator Emeritus

Re: Cap One CLD

The FICO model is flawed IMO... Or at least if lenders say gives you 10k CL then a person should be allowed to use 10k CL without the risk of AA.  As the creditor was willing to give this to Joe consumer.   We wouldn't need 30-50k or whatever credit lines if the FICO model or lenders models actually allowed one to use a decent percentage of ones credit line and actually carry a balance with risk of AA or whatever.  If a lender only want a person to use or trust with a 5k CL give them that let them max that out and they can make interest, etc...  People have become smarter since the cool thing called the internet and know how to maximize their scores as most people aren't stupid thus IMO the FICO model or lender models have to adapt so they aren't one up on the consumer that can figure out why banks are so profitable in their CC divisions aka carrying and paying interest.  /rant over.

Message 29 of 39
CreditMagic7
Mega Contributor

Re: Cap One CLD


@CreditCuriousity wrote:

The FICO model is flawed IMO... Or at least if lenders say gives you 10k CL then a person should be allowed to use 10k CL without the risk of AA.  As the creditor was willing to give this to Joe consumer.   We wouldn't need 30-50k or whatever credit lines if the FICO model or lenders models actually allowed one to use a decent percentage of ones credit line and actually carry a balance with risk of AA or whatever.  If a lender only want a person to use or trust with a 5k CL give them that let them max that out and they can make interest, etc...  People have become smarter since the cool thing called the internet and know how to maximize their scores as most people aren't stupid thus IMO the FICO model or lender models have to adapt so they aren't one up on the consumer that can figure out why banks are so profitable in their CC divisions aka carrying and paying interest.  /rant over.


*Very well said CC"

Message 30 of 39
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