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Contributor
Mopar_Jones
Posts: 205
Registered: ‎06-10-2013

Capital One CLI Button - Odd Reason For Denial

So as some of you have read, I have been actively on Cap One's EO complaining, getting CLI, trying to PC...

 

Anyway, I decided I would try to see if my wife's Cap One card worked for the CLI button. She's had the card since 2006, barely uses it. She has a $2,500 CL and I don't think she's even used it since over 2 years ago. So I decided to hit the button...  The next day, this is what she gets..

 

"You recently requested a credit line increase for your Capital One® account. Unfortunately, your

account isn´t eligible right now. We know this isn´t the answer you were hoping for and we want to

help you understand why:

 

 -The current credit line for this type of account makes the account ineligible for a credit line

increase upon request

 

-This account has not had at least 3 monthly payments made over the last year

 

In case you need a little more clarity, we´ve included some additional information on a separate

page. You´ll see FAQs, common reasons that requests for credit line increases are declined, and useful

suggestions on what you can do next."

 

So, fine, I understand they have also labeled her account as a sub prime account.. I guess once a subprime account (or builder account ) always a subprime account. But why bother putting the second line in there?? The account hasn't had 3 monthly payments over the year?? That's because we don't use the damn thing!! I swear to god, Cap One pulls this crap out of their.. well you know.

 

I honestly can't stand Cap One.. This beyond blows my mind..

New Contributor
GatorGuy
Posts: 351
Registered: ‎06-02-2013

Re: Capital One CLI Button - Odd Reason For Denial

If you don't use the card as it is, why would they want to give you a higher credit line which could possibly keep them from extending more credit from someone who would actually use it?

If women didn't exist, all the money in the world would have no meaning. -- Aristotle
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Contributor
Mopar_Jones
Posts: 205
Registered: ‎06-10-2013

Re: Capital One CLI Button - Odd Reason For Denial

Simply because, why would someone who has avergage credit lines of $35,000+ ever want to use a card with a credit limit of $2,500. The question should really be, why wouldn't they give me a credit limit increase so that they could actually retain me as a customer? As a prime rate customer, why would I use the card? They continue to label their cards and their customers subprime, when obviously some of them are not. Capital One would rather cater to their subprime customer base than retain their current customers who clearly qualify for prime rate limits and rates. Canceling the card would be silly as it is an older tradeline.. but using it would also be silly as the limit is useless to us. Capital One should see we're not using the card.. and there's an obvious reason for that. Since we use a card that has a limit more than 10x's that as our daily card. Instead of realizing that their customer who was subprime almost 10 years ago is now a prime customer and rasing their limit appropriately, they would rather take the chance of losing the customer since they can make more money off of people who tend to default and pay highway robbery in interest just to obtain a card.

New Contributor
GatorGuy
Posts: 351
Registered: ‎06-02-2013

Re: Capital One CLI Button - Odd Reason For Denial

Its not like they are telling you that you will never get a CLI. If you used the card on a semi-regular basis you would probably get an increase. Yes, they could give you the increase and you could use the card more. However, for a customer who uses the card less than 3 times in a year I would say the odds of that happening are pretty dang low. And if you don't use it, they will be losing more money on you by extending more credit.

If women didn't exist, all the money in the world would have no meaning. -- Aristotle
Starting Score: 777
Current Score:  761
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Contributor
Mopar_Jones
Posts: 205
Registered: ‎06-10-2013

Re: Capital One CLI Button - Odd Reason For Denial

How would they be losing money if they extended more credit? They're not losing money if they extend credit per se.. it's only when that credit is actually utilized, which is why some companies get scared when you go above a certain dollar amount even if you are within your credit limit. That being said though, the limit has been at $2,500 since it was opened. Obviously when it was first opened, it had heavy use.. no CLI. The fact is, yes, because we don't use it, they won't raise the limit. Not because they care about the other customers more, but because we don't pay them any interest or fees, so we're not making them money. That is what Capital One is all about.. making money. They don't issue subprime cards to because with poor credit because they feel bad for them or care about them.. they do it because it's a lucrative business. People with poor credit will typically carry a balance.. which means, at subprime rates, they are making more money off of a person with a $500 credit line than they would with a person with a $20,000 credit line. If those subprime customers default, they still make out because they have the ability to sell the debt and write it off.

 

I wouldn't use the card ever because of the APR, the credit limit and the lack of decent rewards. I'm sure I am not the only prime rate customer who feels the same way or is in the same situation. As a business, Capital One should focus more on these customers. It's business 101.. customer retention. There's no way around it. Other than keeping my account open to report as an old tradeline, I will not be their customer or give them any of my money simply because they have failed to provide a decent service to me, and other credit card companies have. It's that simple. If they actually treated me like an 8 year long customer, evaluated my credit report like other institutions do and make decisions based on things other than their ridiculous across the board subprime rate policies.. raised my limit, upgraded me, gave me reward options.. then I would use their card, as would a lot of other people. But just like I said.. they would rather just rob and steal from the less credit worthy than actually have some self respect as a lender.

Frequent Contributor
NewtoCredit80
Posts: 324
Registered: ‎04-12-2013

Re: Capital One CLI Button - Odd Reason For Denial

For every dollar of credit limit extended each bank or credit card company has to set aside some of its capital for the same. This is main reason big overdraft limits have annual fee with them. CapOne business model is different, instead of making money on swipe fees they want to make money on annual fee and interest income more.


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Super Contributor
CS800
Posts: 6,548
Registered: ‎04-07-2008

Re: Capital One CLI Button - Odd Reason For Denial


Mopar_Jones wrote:

 

 -The current credit line for this type of account makes the account ineligible for a credit line

increase upon request

 

 


I got this in a letter from them. I requested a CLI on my Cash card. I do use the card here and there. They don't budge. Last year I got to get them to PC me to this card so I'll just wait.




Valued Contributor
FinStar
Posts: 5,156
Registered: ‎10-21-2012

Re: Capital One CLI Button - Odd Reason For Denial

[ Edited ]

Bottom line - if you do not like the lender, their operating principles or it no longer fits your current lifestyle (regardless of AAoA), there are choices.  Capital One isn't forcing any customer or individual to keep their accounts open.  Granted, for some folks who may have rebuilt their credit (albeit the subprime route) with their products and provided a stepping stone for other lending avenues, then either some folks retain/grow their relationship or move on.  If their business model isn't for you, then the free enterprise market has a plethora of other lenders who can provide alternate lending avenues. 

Contributor
Mopar_Jones
Posts: 205
Registered: ‎06-10-2013

Re: Capital One CLI Button - Odd Reason For Denial

Yes, I am very aware there are other lenders. Those other lenders having given me over $100,000 of unsecured credit on just 3 cards alone. I don't like their business model, which I have expressed why, which I thought was one of the reasons this forum existed? Correct me if I'm wrong?

I don't understand why some of you here feel the need to become so defensive towards other people's opinions about lenders.. Especially Capital One. It's as if you have personally given birth to them. I was simply letting the board know yet another reason for a CLI denial that no one else has posted yet. There wouldn't be so many threads on here if everyone followed your advice to 'just move on'. There is no 'regardless of AAoA. AAoA is a major factor and I will not close the account since there is no annual fee.. That would just be absolutely stupid. I'm not saying Capital One is forcing their customers to keep their accounts open. What I am saying is their business model is horrible. The inability to 'grow' with the company is annoying. The limit they on the card we have is the payment we make a month on just one of our cards. I couldn't charge a lunch on there without ruining that particular accounts UTL. I don't understand why it is absurd for me to be upset that their business model sucks? It does suck. I'd say about 60% of their customers thinks it sucks. If all the people who thinks it sucks closed their cards for the reasons you just said, they would lose over half of their customers, and then either cease to exist or actually start revising their asinine policies and extend credit and CLI like every other large lender.

 

The fact that they continue to come out with new products is because they clearly see a lot of their customers are unhappy. That being said, I don't understand why they don't revise their policies which are causing the unhappiness, rather than just creating new products.

New Contributor
GatorGuy
Posts: 351
Registered: ‎06-02-2013

Re: Capital One CLI Button - Odd Reason For Denial

I'm don't feel the need at all to defend Capital One. However I see nothing wrong with giving another perspective on why you are being treated the way you are. I'm not saying I would be happy if I was in your position. I would either try to do what Cap1 wanted me to do to get what I want out of them or I would simply move on to another lender who fit better with my financial practices. Nothing wrong with either of those.

If women didn't exist, all the money in the world would have no meaning. -- Aristotle
Starting Score: 777
Current Score:  761
Goal Score:      800

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