Capital one AA

[masscredit]

I've been trying to get Cap1's account combination feature to work for close to 2 years. As for last night I had four cards with a total CL of $50K. My plan was to combine them all so I could have one high limit card. I combined two when I found it was working. That gave me a $23K limit. I was going to keep going until someone in another thread mentioned that some people with high limits have expereiced AA/CLDs.  Has anyone been able to determine a pattern or why it's happening?  That person also mentooned that more than $25K was the magic number for a CLD if the card wasn't being used enough. I'd had to see all of my work rebuilding and a 6 year relationship with Cap1 be slashed.

And I guess the saying is true, don't put all your eggs in one basket. 

[Gmood1]

I haven't seen a CLD as yet. I run 6 bucks a month through a $49.5k QS. Lol
We haven't used the QS much since getting the Citi DC, Limitless and Blispay cards.

[CreditCuriosity]

Seems like it was fairly limited..  Myself and a few others people on this forum got hit and some on other forums got hit... It seems like it all happened withiin a weeks period of time from what I could see.. Granted we are just a very small unique community here on this forum and others so we don't really know how many people Cap1 hit also I am sure others got hit that didn't post for whatever reason either that are on this forum, but can only speculate.  Hopefully it has came to an end.  Why they picked on some and not others whom knows.  Maybe cause I only had a small balance (not on a cap1 card) across alot of credit and they saw me being unprofitable?  I can only speculate, but I use to make them money hand over fist as I have been with Cap1 in some form or another for 15-20 years prior to what happened to me and use to always be close to being maxed until I got my act together 3 or so years back.  

[happypill]

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@CreditCuriousity wrote:

Seems like it was fairly limited..  Myself and a few others people on this forum got hit and some on other forums got hit... It seems like it all happened withiin a weeks period of time from what I could see.. Granted we are just a very small unique community here on this forum and others so we don't really know how many people Cap1 hit also I am sure others got hit that didn't post for whatever reason either that are on this forum, but can only speculate.  Hopefully it has came to an end.  Why they picked on some and not others whom knows.  Maybe cause I only had a small balance (not on a cap1 card) across alot of credit and they saw me being unprofitable?  I can only speculate, but I use to make them money hand over fist as I have been with Cap1 in some form or another for 15-20 years prior to what happened to me and use to always be close to being maxed until I got my act together 3 or so years back.  

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Yes, very strange and there doesn't seem to be any pattern really.

I have a $30k Venture and a little over $50k total credit limits with Capital One.  I don't use any of the cards very frequently these days, just once very few months.  I do sometimes have balances report on other cards, but PIF before due date.

If there's one thing I would wonder about is whether account combination is a factor.  I have never had the account combination option available to me, and I haven't experienced a CLD, so I wonder if that was a factor for them when selecting accounts to review.

[Loquat]

I have a QS @ $44.5k and I only run about $80 through it every month and so far so good. 

[driftless]

Wow.  I just read this thread.  OP I am sorry to hear that this happened to you.  This has shaken my thought that Cap One would always be there for you a little.

[Man-Of-Steel]

I figured I would revive this thread to report that Capital One got me too........lol.  They sent me an email today with a subject title of "An important change has been made to your account."  The email states:

On 11/09/2017, your credit limit was changed from $21,000 to $10,000.  The reason(s) for this change:

• Current account(s) not used enough for assigned credit limit(s)

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

Both of these reasons are spot on and I don't blame them for making this move.  Truth be told, I have way more credit than I need, so this was a good move on their part.  This account was opened in April 2015 as a Venture and it was an instant approval for $20K at the lowest APR.  Now, it is a redundant Quicksilver, since I have a slightly older QS with an $11K CL, that has a higher APR.  I've never carried a balance on either of these cards, so the APR doesn't mean much to me.

I have 10 cards with a total CL of $141,900.  It was $152,900 before this CLD.  I don't carry any balances and usually use 1% of my total CL or less each month.  I usually let 2-4 accounts report a balance before paying in full.  I typically use my Quicksilvers once each quarter for $100 to $200 each or so.  So, as you can see very light use.  I'll also mention that my reports are squeaky clean (FICO 8 scores are all 780+) and I've only applied for 2 cards so far this year (recently got a new CSP and Uber Visa).

I may eventually close this account and keep my older Quicksilver account that was opened in 2014.  For now, I'm going to keep them both open, since they are pretty easy to manage together.

[Anonymous]

DP:  Venture from 20k to 10k.   Same reasons:

Current account(s) not used enough for assigned credit limit(s)

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

Recurring charge on car insurance every month.

[CreditCuriosity]

Wow looks like they are doing another round of hits for people that don't use much of their CL's or don't carry balances on other CC's aka people they find unprofitable to them or other banks meaning bad for their business lol..  Sorry to hear about it.  Wonder how many new people this will bring in.

Interesting thing is appears 30k isn't the threshold anymore as one person above was at 21k cl and slashed to 10k... Interesting to see how this develops.

[Anonymous]

Now that Discover is using ABS for funding credit cards, they're also offering a better profit potential than Capital One which has historically been the best in the market (these are according to my own returns and also reading the investor disclosures and reports).

Discover's latest public data is here: https://investorrelations.discover.com/investor-relations/debt-investor-info/discover-credit-card-ab... -- also the PDF of their latest Class A tranche.

If Capital One wants to make money, they need money to make it.  Individuals and groups who invest in ABS want a competitive return at a lower risk -- and if Capital One's lowest risk borrowers don't borrow, there's no return, just a hefty overhead.  Handing out huge CLs historically has actually increased spend, but lately that's not the case on superprime borrowers.  The best investment return lately is on mid-prime "rebuilder" level borrowers who are actively paying interest but are also fighting off insolvency.

Capital One needs to do something to entice new spenders.  What they did in the past 2 years didn't do that, but it was extremely costly.  Take 100 people with $20,000 credit limits (exposure is $2 million) and have them pay $0 in interest and around $600 each in swipe fees ($60,000 total) and add in a $100 SUB ($10,000 cost) and overhead, management and regulatory fees and you're getting a return of what on $2 million?  Maybe $5000?  No one wants a 0.25% return on investment.  Doesn't make financial sense at all.

If they CLD do from $20,000 to $10,000 they might be doing it by liquidating the ABS portion and relying strictly on their own internal capital for financing future spend.  I have no idea if this is the case but it would make sense to me.