Credit Cards

[HondaHank]

So I get a "courtesy call" from a Cap One rep to inform me that my CL of $9300, that I've had for over 15 years and just PIF, was being reduced to $700. I heard that Capital One had a lot of shaky CC accounts because of the recession, but WTF? Since a person today is being reduced to the sum of your FICO, it makes it tougher to get ahead.

Sorry. Just had to vent... Anyone else getting "the call" from Cap One?

[VEEnVEGAS]

Wow...Chase,Target,and now Cap One. Getting spooky out there.

I'm so sorry for your CLD. It is nice to see that they called and gave you notice though. Did they give you a reason?  The reasons given are usually random and seldom make sense though.

[miay2k4]

Wow. I've heard of a CLD, but that is outrageous!!  And im sure that is your oldest accont too?

[HondaHank]

In all honesty, I did have a couple of lates within the last 9 months (non related account). Both my wife and I are unemployed at the moment. But I have been current on all debt for the last 6 months, and have always sent more than the minimum. I expected a CLD once I paid off the balances, but a decrease of $8,600 ridiculous! I filed Chap 7 11 years ago and my CL remained the same.

Chase just reduced my CL on a former WaMu Visa from $7,500 to $2,500 right after I paid that balance in full. My whole goal of raising my FICO score when I do get to the employment verification stage is being sabotaged. When the economy still lags through 2010 because of a lack of consumer spending, all you have to do is look at actions by CCC like these and you'llunderstand why.

[HondaHank]

Yes it was my oldest account. it used to be my Sears MC with no balance and a $900 CL until Citibank closed that this year.

[haulingthescoreup]

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HondaHank wrote:

In all honesty, I did have a couple of lates within the last 9 months (non related account). Both my wife and I are unemployed at the moment. But I have been current on all debt for the last 6 months, and have always sent more than the minimum. I expected a CLD once I paid off the balances, but a decrease of $8,600 ridiculous! I filed Chap 7 11 years ago and my CL remained the same.

Chase just reduced my CL on a former WaMu Visa from $7,500 to $2,500 right after I paid that balance in full. My whole goal of raising my FICO score when I do get to the employment verification stage is being sabotaged. When the economy still lags through 2010 because of a lack of consumer spending, all you have to do is look at actions by CCC like these and you'llunderstand why.

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Yeah, I'm afraid recent lates are killers. When CCC's review accounts to determine their risk, lates within the most recent year jump right off the page. It makes their decision easy.

I'm so sorry to hear that both of you are out of work at them moment. Have you tried GW (goodwill) on the accounts with late payments? This essentially means calling or sending a contrite letter explaining the circumstances of the lates, and asking if they would be willing to not report them. Sometimes you'll get a response that this is illegal --it's not. It's a business decision by a bank to do a customer a favor. They're supposed to report all derogs to the credit bureaus, but this isn't law. You might mention that you are desperately trying to improve your credit reports in case potential employers pull them.

Your chances for GW are better if you have a convincing reason for the late, if you have since been timely with that particular card, and if some time has passed since the late. Again, some lenders will, and some won't --it varies by bank, by who reads your letter or answers your call, and probably by the phase of the moon.

Good luck!

[FretlessMayhem]

I thought Capital One stopped doing UD a couple years ago.

[score_building]

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FretlessMayhem wrote:
I thought Capital One stopped doing UD a couple years ago.

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+1

 i also thought they were one of the only bank issuers that don't hike after just 1 late.

[haulingthescoreup]

I don't know if this is exactly UD (universal default.) This might be just the account reviews triggering APR increases and CL decreases that all the banks have been doing.

Which, yes, I realize is a pretty good definition of UD. But with the changes in the economy, and all of us getting our accounts reviewed and fiddled with, plain old UD seems to have morphed into something much bigger.

[athensguy]

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FretlessMayhem wrote:
I thought Capital One stopped doing UD a couple years ago.

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UD mostly applies to the default APR.