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Massive CLD from Cap One

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SouthJamaica
Mega Contributor

Re: Massive CLD from Cap One

I'm convinced that the common denominator for the large majority of Capital One adverse actions being reported here is that the accounts had been combined under Capital One's easy online account combination process.  I believe those accounts are being viewed through a different lens.

 

So my advice for anyone thinking of combining Capital One accounts.... don't.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 91 of 118
Anonymous
Not applicable

Re: Massive CLD from Cap One

Sorry that this happened to you. As previously stated.. I won't be combining any CapOne credit cards anytime soon. 

Message 92 of 118
Credit-hoarder
Valued Contributor

Re: Massive CLD from Cap One


@SouthJamaica wrote:

I'm convinced that the common denominator for the large majority of Capital One adverse actions being reported here is that the accounts had been combined under Capital One's easy online account combination process.  I believe those accounts are being viewed through a different lens.

 

So my advice for anyone thinking of combining Capital One accounts.... don't.


@I was pretty much ready to believe combiniing was the main factor also--but then there was the poster earlier that was approved with the $30K SL+ had a $750 CLI and his card got busted down also. But you're absolutely right...I for one won't be combining any of my 3 cards with them anytime soon. @SouthJamaica: But I find it downright disdeartening that they flat out closed yours down completely!

BUSINESS
Rewards Pts.-Miles: UR-MR-TYP-Venture
Message 93 of 118
yfan
Valued Contributor

Re: Massive CLD from Cap One


@Total80sKid wrote:

If I worked hard to earn good credit and get my card limits up high, then I shouldn't be nervous every day to see if my limit was lowered.


Nervousness is up to you, but no one is entitled to any credit limit. It's not property, and it's not a promissary note. It's the amount of money a lender is willing to let you borrow at any given moment. That's up to them.

 


@Total80sKid wrote:


And emergencies come into play.


Again, while it's good to have a bit of credit available for emergencies, it isn't a creditors' job to fund emergencies, unless the loan is specifically made for that (like a payment plan worked out with a hospital, for example). I should also mention that living within one's means should include using a low enough amount of your credit that even in case of a CLD here and there you would still have some breathing room. In the cases we are discussing here, CapOne mostly lowered limits to $10K on cards that were seeing at best a few hundred dollars a month of spend. I'd call that breathing room.

 


@Total80sKid wrote:


If I'm making less than $12k a year it doesn't mean I shouldn't be allowed a limit several times higher than my income.


It's up to each lender. It's their money you are borrowing, and they are free to choose how much exposure they are comfortable with. As I said, credit limits are not property and are not promissary notes.

 


@Total80sKid wrote:


Being poor or low income does not mean we will live beyond our means. We have obviously proved we are reliable when it comes to paying our debt back.


Being poor or low income certainly does not mean that one will live beyond one's means. In fact, most low income people I know are incredibly careful with their money. But if one is not living beyond their means, then there's no reason why one needs credit limits "several times" one's annual income.

 


@Total80sKid wrote:

 

I have a perfect payment history without a BK and see plenty of people here with lates and BK's approved for all kinds of things I'm not approved for.

 

There's a reason we have credit scores.

You take care of your financial responsibilities and use credit wisely, they reward you with higher limits and lower APR.


But income IS a factor. Income is directly tied to your current ability to pay, while your history of paying back your debts demonstrate your past willingness. Both are important.

Message 94 of 118
driftless
Valued Contributor

Re: Massive CLD from Cap One

I think that it is more than just doing a combination.  My wife combined two cards and I seriously doubt she is at risk for CLD because her CL is around $10K.  I think the Cap One CL, total number of cards and the TCL are important factors.  I also think that card usage is part of the calculation as well.

CSR | Amex Platinum | EDP | QS (2)
Amex Blue Business Plus
Message 95 of 118
longtimelurker
Epic Contributor

Re: Massive CLD from Cap One


@SouthJamaica wrote:

I'm convinced that the common denominator for the large majority of Capital One adverse actions being reported here is that the accounts had been combined under Capital One's easy online account combination process.  I believe those accounts are being viewed through a different lens.

 

So my advice for anyone thinking of combining Capital One accounts.... don't.


As mentioned earlier, I don't think there is a whole lot of value in this sort of analysis as there are way too many variables, but I also think people  are prone to look for what they believe.   A quick scan of the thread:

 

 

Combined

==========

 

morganc (or rather wife) 

Kidcat 

 

Didn't combine

Me

Iheartwing

 

Not sure

CreditCuriousity

 

 

So even putting cc into the combined camp, we get 3 to 2,, which is hardly proof of anything (and I would guess many MF have combined, inflating the probability that any individual would fall into this camp for anything)

 

I really wouldn't expect more than "high unused credit limit with Cap One" regardless of how it got there.   Now if they are looking at a single card rather than overall exposure, it's probably better not to combine just to avoid the new high CL, but unlike SJ, I am as convinced that it's the CL, not whether it was combined or not, that matters.

Message 96 of 118
CreditCuriosity
Moderator Emeritus

Re: Massive CLD from Cap One

Just another DP although doubtful we can draw any more conclusions mine were combined, but with that said I was instant approved for Venture at 20k, QS 10k and a really old 4.5k Platinum that was converted to a QS.  So yes they were willing to give me 20k CL's without combination.  I simply think it was just unused credit they could give to someone else that could use it more thus line was slashed to 10k.  With that said I think it is CL's > 30k that are being targeted.  I suspect if I would of left my 20k Venture alone etc I wouldn't of got slashed, but pure speculation once again.

 

 

Message 97 of 118
iheartwings
Valued Contributor

Re: Massive CLD from Cap One


@CreditCuriousity wrote:

Just another DP although doubtful we can draw any more conclusions mine were combined, but with that said I was instant approved for Venture at 20k, QS 10k and a really old 4.5k Platinum that was converted to a QS.  So yes they were willing to give me 20k CL's without combination.  I simply think it was just unused credit they could give to someone else that could use it more thus line was slashed to 10k.  With that said I think it is CL's > 30k that are being targeted.  I suspect if I would of left my 20k Venture alone etc I wouldn't of got slashed, but pure speculation once again.

 

 


I totally agree with this, especially since they didn't touch my other card that had a $17.75k CL.  What makes no sense to me is that Capital One GAVE me a $30k CL, knowing that I don't typically charge more than $5k-6k in a month, for which the QS with the $30k line saw 10-15% of that spending with utilities and recurring charges. The emotional side of me takes this as a bit of an insult (particularly since another account that was 9 years old with them at the time I applied), and the business side of me, while somewhat perplexed, gets that this a business decision on their part.

 

I decided to close all of my lines with Capital One. They gave me a good opportunity when I was rebuilding, but I really don't feel that the cards fit into my long term strategy, particularly when I'm getting offered incentives (hello, US Bank) from other cards, resulting in higher CB yields. I realized that I had a bit of an emotional attachment to keeping the older card, but in the end, I wanted to be practical. I feel that this move will allow me the opportunity to grow other lines, if need be. The cards will continue to contribute to my AAoA for 10 years, so it hopefully it won't cause my CS to drop like a brick. 

 

I was able to close both lines online, selecting Credit Line and Customer Service as reasons for closing my account. 

 

 

Message 98 of 118
longtimelurker
Epic Contributor

Re: Massive CLD from Cap One


@iheartwings wrote:

@CreditCuriousity wrote:

Just another DP although doubtful we can draw any more conclusions mine were combined, but with that said I was instant approved for Venture at 20k, QS 10k and a really old 4.5k Platinum that was converted to a QS.  So yes they were willing to give me 20k CL's without combination.  I simply think it was just unused credit they could give to someone else that could use it more thus line was slashed to 10k.  With that said I think it is CL's > 30k that are being targeted.  I suspect if I would of left my 20k Venture alone etc I wouldn't of got slashed, but pure speculation once again.

 

 


I totally agree with this, especially since they didn't touch my other card that had a $17.75k CL.  What makes no sense to me is that Capital One GAVE me a $30k CL, knowing that I don't typically charge more than $5k-6k in a month, for which the QS with the $30k line saw 10-15% of that spending with utilities and recurring charges. The emotional side of me takes this as a bit of an insult (particularly since another account that was 9 years old with them at the time I applied), and the business side of me, while somewhat perplexed, gets that this a business decision on their part.

 

I decided to close all of my lines with Capital One. They gave me a good opportunity when I was rebuilding, but I really don't feel that the cards fit into my long term strategy, particularly when I'm getting offered incentives (hello, US Bank) from other cards, resulting in higher CB yields. I realized that I had a bit of an emotional attachment to keeping the older card, but in the end, I wanted to be practical. I feel that this move will allow me the opportunity to grow other lines, if need be. The cards will continue to contribute to my AAoA for 10 years, so it hopefully it won't cause my CS to drop like a brick. 

 

I was able to close both lines online, selecting Credit Line and Customer Service as reasons for closing my account. 

 

 


I kept both of mine open (the 35K->10K and the 20K) partly because it is sometimes useful (1.5%, no FTF, immediate reward) but mainly because I couldn't be bothered to do anything...

Message 99 of 118
Appleman
Valued Contributor

Re: Massive CLD from Cap One

Another CLD. Was at $35,500, this was achieved via account combination. Also, had a recent fraudulent charge on an AU's card that was in my possesion during the fraud.

 

Luckily Cap1 caught is quickly and issued a new AU card. When I was using the chat feature to active the AU card I requested the decrease to $25,000. They immediately decreased my CL and told me to have a nice day!

 

As I begin my consolidation strategy, I could not think of a reason to keep the higher CL.

Message 100 of 118
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