Capital one stupidity?

[longtimelurker]

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@antdave93 wrote:

To Whitesol- i understand your points regarding nfcu bucking the trend at giving out generous credit lines, but they still are in the business to make money. So in the end nfcu and Barclays are making more money from me because i am using there card more.

The only money cap one is making from me is their 29.00 annual fee.

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Right but think of the bigger picture.    They can be making money in swipe fees and maybe interest, and then you default  (as 3+% of the US card holders do).   If you have a $5K limit say, that loss wipes out all of the swipe fee money pretty quickly.   So they take, in the main, a conservative approach to those who started rebuilding or without credit history.

They do give good credit limits to people with different credit histories: e.g. they started me with a $30K limit in 2004, whereas last year Barclays gave me $4.7K, and my history is only better!

[notfancy]

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@antdave93 wrote:

Let me say this first- I am grateful that capital one gave me a second chance at credit.

But in nine months since opening a secured card for 300 with them I have received a 500 line from express- 800 from Barclays- 12500 from nfcu and 15000 cloc from nfcu. But still no cheesy offer from cap one. Im not upset, but I just think they are leaving a lot of potential money on the table. The CFO over there should fired. 

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Cap One doesn't give CLIs on Secured cards (well, they may give a one time $100 increase, and in rare cases, I have read where they gave another $100 increase). I believe they gave me $100 when I deposited 200, and then gave me another $100 increase once. Though I might be slightly off on there as it's been a long time. I spoke with the EO and they said that I can't get my interest lowered on that card, a CLI, upgrade to a rewards card etc... I got CLIs on my unsecured card from them, and an upgrade to Quicksilver One but that's different. Once I get another decent credit card, I plan to close my secured card with them, and keep my unsecured.

In your position, if you already have better cards, wait til the one year mark and close the secured card. It served its purpose and you have other cards now that are better. Just be careful with Barclays as I hear they can be a jealous lender.

[Grover627]

Cap One also gave me a chance to rebuild my credit after my BK7 in 2012. I started with a Platinum Card 3 months after my BK with a limit of $2000. Today, less than 3 years later, I have a Quicksilver Card (PC from the Platinum last year) and a Quicksilver One Card, with a total of $6000 in CL. I have found that with regular, responsible use, that Cap One will grow with you.Work with the EO as well- they are very helpful.

Would I like larger limits? Sure. But the reality is that I went through a bankruptcy less than 3 years ago, and am a higher credit risk than many people. The fact that Cap. One is giving me a chance without charging me the awful fees & rates of banks like Credit One, First Premier, etc., is a HUGE opportunity for me, and for others in my situation.

Many people on here whine about Cap. One as a company, but they are one of the best banks out there to rebuild.

[red259]

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@BRlaw wrote:

Crap one will always be a subprime lender...

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I got my first five figure credit line from cap one, so I would disagree. It depends on what product you have. These threads about cap one pop up every other week it seems. They are a conservative lender. However, they do give out cards to people that other lenders flat out reject. Credit lines from credit unions mean little to other lenders imo, and are not really a good barometer of what your credit lines will be with prime lenders. The trick with capital one is having reasonable expectations. If you get a rebuilder card with them do not expect it to really grow very large. Its not going to happen. Their model is not designed that way. Even the CSR will tell you your better off applying for one of their other products instead.

My view of cap 1 is to use their cards to rebuild credit and then move on to other lenders when you no longer need them. OP is not complaining and I'm not referring to OP, but I have seen other threads where people complain about cap 1 not giving CLI on their rebuilder cards. That just tells me that those people did not do any siginificant research into the card before applying and then expected that they would be treated differently then the countless others before them. One of the best pieces of advice in building credit IMO is that you should be fully informed before you even apply for a card and know how the card may work out for you in the long term. Its fairly easy to figure out by searching the forums for info on different lenders to see what people's experiences have been. 

[Open123]

In my view, Cap One is a great card to build and/or rebuild, if one understands their subprime cards are limited in growth potential.  

There's no way to circumvent it (I guess, you can call/write EO 100 times, and convince them), but just accept it, then apply for their "prime" cards.  It'll lead to a much better experience, higher limits and a useful card.  

The Quicksilver, in my view, is one of the best cashback cards out there.

[antdave93]

Just to clarify my original post regarding capital one stupidity- I believe capital one does a great job giving people a second chance at credit, but having said that, I just think they miss a good opportunity to gain a loyal and long customers. Most of their customer base are trying to rebuild there credit after making mistakes or life changes. So I think now majority of those customers will now be even more responsible with credit. That is where i think they are missing out.

[indiolatino61]

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@antdave93 wrote:

Let me say this first- I am grateful that capital one gave me a second chance at credit.

But in nine months since opening a secured card for 300 with them I have received a 500 line from express- 800 from Barclays- 12500 from nfcu and 15000 cloc from nfcu. But still no cheesy offer from cap one. Im not upset, but I just think they are leaving a lot of potential money on the table. The CFO over there should fired. 

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If not for the EO advice I found here, I would not have gotten anything out of Cap1. The best of luck to you.

[maksimfa]

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@antdave93 wrote:

To Whitesol- i understand your points regarding nfcu bucking the trend at giving out generous credit lines, but they still are in the business to make money. So in the end nfcu and Barclays are making more money from me because i am using there card more.

The only money cap one is making from me is their 29.00 annual fee.

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Until the chance that you stick with them with bill when you default or file BK?

No one likes to think they will possibly have issues in the future, but what NFCU is doing, is outright dangerous for them.  They are the equivalent of Fannie and Freddie that are handing out credit like crack cocaine. No one is blaming you for taking it, however they will get hurt at some point.

Just because one bank gives out credit like no tomorrow, does not mean the rest of them have to.

I personally don't know what NFCU is doing, or whether they have been ordered to do lax underwriting much like the banks were forced to by special interest like Acorn, however the rest of the banks are doing what they feel is necessary to make it a win win for everyone. =)

No one has to lend anyone money.  With the hightened reserve requirements and issues in the past, I salute banks for being conservative. 

[maksimfa]

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@antdave93 wrote:

Just to clarify my original post regarding capital one stupidity- I believe capital one does a great job giving people a second chance at credit, but having said that, I just think they miss a good opportunity to gain a loyal and long customers. Most of their customer base are trying to rebuild there credit after making mistakes or life changes. So I think now majority of those customers will now be even more responsible with credit. That is where i think they are missing out.

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Indeed they do, and that is why I still I run a ton through my Spark and Quicksilver even though I have much higher limits on other cards.  The perks are pretty good and they have done right by me.   So has Barclays.

As others have said, can't really compare Cap 1 with a credit union.  Two different ball games. =)

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@antdave93 wrote:

Just to clarify my original post regarding capital one stupidity- I believe capital one does a great job giving people a second chance at credit, but having said that, I just think they miss a good opportunity to gain a loyal and long customers. Most of their customer base are trying to rebuild there credit after making mistakes or life changes. So I think now majority of those customers will now be even more responsible with credit. That is where i think they are missing out.

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[antdave93]

To maksimfa: so basically you are saying all nfcu members are all like poor crack heads getting free money?

The last time i check navy has been in business over 70 years so they can't be that stupid giving out credit to anyone as you implied.

Sounds to me a hint of jealousy that you are not a member.