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05-26-2012 09:25 AM
I have had good experiences with Capital One. I opened my first Capital One card three months after filing Chapter 7 Bankruptcy. $500 limit (not secured), $49 annual fee. After a few years, credit limit increased to the maximum $5000 and they waived the annual fee. Yes, my Platinum card has no potential for growth, but Capital One gave me credit when nobody else would. Even though I don't use the card, I still have it since it is one of my oldest cards. I have nothing bad to say about them. Most people that seem to be stuck at the low limits don't seem to tell the entire story such as their current credit problems. It is hard to believe that capital one would not raise someone from a $300 credit limit when they have perfect credit.
05-26-2012 09:25 AM
This has been going on for a while and I think I understand a little better now... Being a Cap1 customer I must admit I also have hard feelings toward them. So I was and pretty much still am biased against them.
The biggest problem people have with Cap1 is that they do not fulfill their expectations in the long run. In the short run people are happy to have the card, but if they are doing all the right things they will quickly out grow the card. Now is Cap1 the home of Peggy, definitely! But why do people end up so unhappy with Cap1 so quickly? Many people get their Cap1 cards about the same time they are getting store cards. The store cards grow with the consumer when they are doing the right thing, many of the store cards can even be upgraded into a regular card. We are just happy to see the card become a Visa, AMEX, MC or Disc and do not complain about the fact that the interest rate is still too high. Instead we just continue to treat it like a store card for promotions. Cap1 CLs grow slowly and you cannot upgrade the card, this creates aggravation with them on our part. The fact that the only way we can go from one of their subprime cards to a prime card is buy apping for a new card just annoys the hell out of everyone.
Will other cards upgrade us? I mean really upgrade us! Has your card started you out at its highest interest rate and later lowered it (either automatically or upon your request)? Other than a few select companies, I think you are stuck with what you started with. So why does everyone insist in being upset at Cap1? Your CL goes from 500 to 750 while your store cards go from 400 to thousands. The difference is very noticable! When you combine that with their horrible CS, we just bash the company like no tomorrow. I have said before and will repeat it, if Cap1 had a way to upgrade its customers they would end up with a much more loyal customer base. If Cap1 was your first unsecured card and over ten years they moved you to one of their higher end programs, you would most likely never be willing to give up that card. Like much that is going on in business today, their model is flawed. They are sacraficing long term profitablity for short term profits. It can also be argued that the short term profits will always be available, since there will always be people having credit problems. Still if they tried to cover both bases, they could increase their overall profits in the future.
I have a new found understanding (I will not say respect) for Cap1. I am still going to be closing one of my accounts when the AF comes due, but I may app a venture (in 2018, when I have all the cards I really want).
05-26-2012 09:26 AM
If I am blabbing and repeating myself, sorry... I just woke up and am drinking my coffee now
05-26-2012 10:01 AM
I have had every bad thing imaginable happen with capital one. I was wrongfully denied for Venture, fought for months to have a damaging mistake by them on my Experian report corrected. Then, I was wrongfully denied again for a Spark Biz Card and was denied a CL increase on another card and have been jerked around trying to get answers on all these issues from their dim-witted front line who speaks bad English.
What does "wrongfully denied" mean? Do you mean to imply that they were obligated to give you credit? As far as I know, no creditor is obligated to give a particular consumer SQUAT if they don't want to.
From what I gather in his post I think he had incorrect data on his reports which were causing the denial.
I didn't really get that, but that's OK...opinions vary
On a related note, it is becoming a disturbingly-prevalent trend here for posters to exhibit what I like to call "credit privilege" behaviors. That is, they believe that their credit profile somehow entitles them to a specific credit product. My reading of the aforementioned post led me to believe that the poster felt as though he deserved the Venture, Spark and CLI on the existing card.
We would all do well to remember that credit is, in and of itself, a PRIVILEGE. We are not entitled to credit under ANY circumstance. Someone else is giving you access to THEIR funds with the promise to repay. That is quite an honor - especially given the recent credit crisis that rocked our nation's economy.
When I hear whining about Cap1, I think back to when I was a credit outsider...and these so-called "prime" lenders saw me as the plague rather than someone to take even a small chance on. Cap1 gave me a shot, and therefore has earned my business. They are prompt to post payments and restore available credit...and I found their CS to be much better than the other sub-prime companies out there.
They have a particular business model. If you don't agree with it, move on to another lender. God knows there are enough out there to choose from...regardless of your credit profile
05-26-2012 10:56 AM - edited 05-26-2012 10:57 AM
I bet Cap 1 has been burned enough that the end result is the current program. What I mean is this is - What percentage of folks who get these cards default on them? What percentage of folks who 'do the right thing' for a few years end up getting themselves back in trouble?
I bet the percentage is very high. Even on this board where folks are trying to learn, I bet the percentage of folks who will have future problems is pretty high. I see it all the time here. Folks come on looking for ways to clean up their report. Instead of wanting to change, they want a quick fix so the can buy a house or a car.
So I do not fault Cap 1 for their policy. They have every right to not trust me in the future. My past is full of examples of why they should not.
Now, I WILL be in the percentage of folks who are really changing, but how does Cap 1 know that?
05-26-2012 11:31 AM
05-26-2012 11:39 AM
Body... you might want to close the secured one so you can get your deposit back. Since you are happy with Cap1, when the baddies fall off get a Cap1 Venture, it is prime, but you get the same CS.
05-26-2012 01:33 PM
MrGoat wrote:Actually, this isnt actually accurate.
There is a really good reason to have as high a limit as your CC company will give you....overall utilization.
If you spend $2000 on a $3000 limit CC, you are using 66% of your limit, if thats the only card you have.
That will impact your score more than if you had $10,000 limit on your cards.
My lowest CL is $5k with the other 2 being $15k and $20k and I will probably bump up a couple of them at the end of the year. A lower % utilization is always handy but at the same time you don't want to carry a large balance even if it is under 35% of 70k = $24.5k or 10% which is $7k. I think it depends a lot on what you CAN afford to pay via your cards based on your earnings. Some people like to pay for everything via their cards to collect points, rewards, cash back, etc. and then pay off the cards before their due date. That's really great as long as they don't spend MORE than they can pay back.
05-26-2012 03:39 PM - edited 05-26-2012 04:27 PM
"What does "wrongfully denied" mean? Do you mean to imply that they were obligated to give you credit? As far as I know, no creditor is obligated to give a particular consumer SQUAT if they don't want to."
What that means is that my scores and reports were within the guidelines for approval and that the denial letter gave bogus reasons for denial that didn't jive with what was in my credit report. When I sent that packet of papers for a recon, I challenged each reason given for denial and flagged pages in my credit reports for easy reference to show that the reasons were simply WRONG. And it worked because I was then approved. Like I said, I was WRONGFULLY denied.
So yeah, you can tell me all about the privilege of credit and that they don't HAVE TO approve anyone if they don't want to. But if you apply for a card that is well within the qualification criteria and you are denied for some inexplicably bad reason, I call that a wrongful denial. CC issuers are only too happy to get more cards in the hands of qualified applicants. So when someone with 2 scores in the 730s with no delinquencies in almost 6 years gets denied a card because the computer got tripped up on a gray issue on the 3rd report with a score of 702 because of something caused by said company, it's wrong.