topic Re: Capital One CLI 2-3 Day Message in Credit Card Applications

Capital One CLI 2-3 Day Message

Anonymous — Mon, 18 Dec 2017 16:14:11 GMT

I anxiously applied for a CLI today on my QS1. I currently have a limit of $850 and was really hoping to get a good increase as I have had the card for three years (I think I received my credit steps increase and asked for 1 or 2 CLI in that time) and my credit situation is much improved since apping - scores are probably about 100 points higher. Much to my dismay, I got the dreaded 2-3 day message, which 99.9% of the time means a denial. I feel like this limit is too low to be maxed out with them, and my current utilization is about 3% on the card and 1% overall. I just had a bigger spend month with them with about $700 being on the card now paid down to about $20. My statement cuts today and it will be the 7th statement reflecting my $850 limit. Could that be why I got the 2-3 day message? Just the timing with the statement cut? Or has my profile changed enough that they may be doing a manual review? Closing on a house in less than a month and was hoping that I would have a somewhat decent limit to put some purchases on the card and get some cash back.

Re: Capital One CLI 2-3 Day Message

Shooting-For-800 — Mon, 18 Dec 2017 16:23:20 GMT

Some cards will never get a major CLI no matter what.

Research capital one glass ceilings, brackets, buckets, etc.

If you want a higher credit line, check cap one prequal page for a new account.

If you are prequal and your score is 50+ higher than it was when you opened the old card, and a decent income you would probably receive a new account with a much higher CL than you have now.

I have been denied CLI and approved for new cards $10k-$30k each SL the same day.

Cap One puts glass ceilings on accounts but not clients. Whatever your credit was like when the card was opened is how the card is treated forever.

Re: Capital One CLI 2-3 Day Message

Anonymous — Mon, 18 Dec 2017 16:28:33 GMT

Read my post on Capital One ABS.

If a card doesn't grow at 13 months, get a new card with a higher limit and combine limits when you can between the two cards.

Also note that most tranches exist for 5 years, so if your card is in a subprime tranch, it may take 5+ years to get out of it.

Re: Capital One CLI 2-3 Day Message

Anonymous — Mon, 18 Dec 2017 16:50:00 GMT

Very interesting read ABCD2199! With this logic of wanting to keep people around to help raise averages, wouldn't it make sense though to up limits for them? I would think most people would go elsewhere with a better limit. I knew that you could get "stuck" with CapOne if you apply with low scores, but I can't imagine that my CL is maxed out at $850! I don't even want anything crazy, just one regular credit card that is over $1000! And I can't wait to close my credit one after closing on the house. All of my store cards are over $1000 (actually 3/4 are over $2000) and used very responsibly. I am sure that I would get higher limits with a new card, but need to wait a few months before I can do that. However, AMEX BCE and Discover IT are definitely in my sights! I am certain to get higher limits with them (at least after my first CLI) and they also give cash back, so what is the incentive to keep my CapOne card? Other than it being my oldest card. Also, not sure if it makes a difference but it was upgraded from Platinum to QS1 over the summer.

Re: Capital One CLI 2-3 Day Message

Anonymous — Mon, 18 Dec 2017 16:58:53 GMT

@Anonymous wrote:
Very interesting read ABCD2199! With this logic of wanting to keep people around to help raise averages, wouldn't it make sense though to up limits for them? I would think most people would go elsewhere with a better limit. I knew that you could get "stuck" with CapOne if you apply with low scores, but I can't imagine that my CL is maxed out at $850! I don't even want anything crazy, just one regular credit card that is over $1000! And I can't wait to close my credit one after closing on the house. All of my store cards are over $1000 (actually 3/4 are over $2000) and used very responsibly. I am sure that I would get higher limits with a new card, but need to wait a few months before I can do that. However, AMEX BCE and Discover IT are definitely in my sights! I am certain to get higher limits with them (at least after my first CLI) and they also give cash back, so what is the incentive to keep my CapOne card? Other than it being my oldest card. Also, not sure if it makes a difference but it was upgraded from Platinum to QS1 over the summer.

They can't up limits so easily because there's limited funds in each tranch. So if they up your limit to $10,000 you "deserve", then 50 other folks don't get their $200 starting limits. You make a lot more money if 43 out of 50 people carry balances on $200 limits than if you have one guy with a $10,000 limit swipe a pack of gum monthly.

The incentive to keep the Capital One card is threefold:

It's most rebuilders' oldest tradeline, sometimes by a large margin.
There's an ongoing myth that will never die that closing a credit card hurts your score.
They give out just enough tiny auto CLIs to give people hope/pause that there is more in store.

I can't publicize which lenders I've consulted with (for another 6 years) but I've consulted with two well known credit card lenders -- not on financial matters. But I've befriended a few folks in underwriting and they've told me the same thing: subprime borrowers who become prime FICO holders are potentially more profitable for a bank than brand new prime FICO customers, because almost all banks today who cater to subprime borrowers also sell ABS to investors.

You absolutely NEED some folks with 700 FICO scores in the tranch caterring to folks with 500 FICO scores, because it greatly offsets the risk calculation. Investors won't invest in a tranch with a risk return of -3.5% annuallized, but if you throw in 5% of the borrowers as +20% annualized risk return, now that -3.5% return investment is +0.5%. You and I can't even seen the math in reality (other than public disclosures, which are rare and hard for most to read).

I read ALL asset back securities reports when they're released because I like investing in those issues. I made a total killing on SLABS (student loans asset backed securities) because I saw so many "friends" with loan issues a decade ago, so I decided to jump in and the returns were absolutely stunning (no BK, no chance of avoidance, they'll get it eventually). Now I'd like to get into credit card ABS in the future after the next major market correction plows out borderline defaulters and we can start anew. Right now, I think ABS are going to be pummeled when the market corrects again.

Re: Capital One CLI 2-3 Day Message

Anonymous — Mon, 18 Dec 2017 17:04:24 GMT

@Anonymous wrote:
And I can't wait to close my credit one after closing on the house. All of my store cards are over $1000 (actually 3/4 are over $2000) and used very responsibly. I am sure that I would get higher limits with a new card, but need to wait a few months before I can do that.

Just wanted to comment on this part as well.

One of the big parts of long term credit building is using the "prybar effect". A prybar is a prime bank card with a high limit -- it tends to get a match from new creditors who want to woo your spend.

The prybar effect doesn't work with store cards or credit union cards -- most prime banks IGNORE those limits completely. So if you have 10 store cards with $5000 limits and 2 credit union cards with $10,000 limits, but one bank card with a $500 limit, your next bank card may be closer to $500 than $10,000. This is because prime banks mostly ignore non-prime bank limits.

Capital One is a goof prybar bank, though. Folks with $20,000 Venture cards tend to get high limits from others. Because Capital One allows you to open a new account and "merge" old limits into the new one (or vice versa), you can grow your Capital One high limit card easily over a period of years -- at a cost of 3 inquiries across 3 bureaus, of course.

Re: Capital One CLI 2-3 Day Message

Anonymous — Mon, 18 Dec 2017 17:13:57 GMT

Honestly, the 3 pulls makes me not want to get another Cap1 card and go with Discover or AMEX instead. I'll have to see what kind of offers I have when the time comes.

Re: Capital One CLI 2-3 Day Message

Anonymous — Mon, 18 Dec 2017 17:35:41 GMT

@Anonymous wrote:
Honestly, the 3 pulls makes me not want to get another Cap1 card and go with Discover or AMEX instead. I'll have to see what kind of offers I have when the time comes.

1 inquiry per report isn't all that important if you plan your inquiries properly. In fact, MOST scorecards rate 1 inquiry the same as 0, so if you have no apps planned for a year, it's no big deal.

Capital One is regularly and consistently part of most "high credit limit" profiles because of the option to merge limits and build on them (while still getting auto CLI and manual CLI at 6 months). So a lot of folks with high credit limits everywhere got there first with Capital One, then 6 month CLI, then 12 month CLI, then new app + merge limits and repeat!

Definitely get in with Discover and Amex, but don't write off Capital One forever.

Re: Capital One CLI 2-3 Day Message

Anonymous — Mon, 18 Dec 2017 17:47:08 GMT

I've got quite a few right now from the mortgage process and have no need to app for anything in the near future.

If I were to get a new Cap1 card and after six months merge it with my current QS1 to keep the age but have a higher credit limit, do the same restrictions apply for future CLI requests? So if I were to app and get a new card with say a $2000 limit (toy limit for some, but I would be ecstatic) and combine it for a total of $2850, am I pretty much stuck there? Which card determines my fate? LOL

Re: Capital One CLI 2-3 Day Message

Anonymous — Tue, 19 Dec 2017 23:08:20 GMT

Well, I got my answer today. I was declined for having too many inquiries. It looks like they used Equifax and I currently have 9 listed - 6 of them are mortgage related over a span of approximately 10 months. I don't feel like this is an extreme amount by any means. I tried calling Cap1 to see if I could do some recon or at least find out what is considered too many. No luck, extremely unhelpful - essentially told me to call a "credit specialist" at my bank to see what they consider to be too many. Any idea what is considered to be too many? Or who I can call at Capital One to find out? I have one that will fall off next week on the 26th, but other than not, nothing until September. This also makes me very leery of apping for new cards...

Re: Capital One CLI 2-3 Day Message

Anonymous — Sun, 01 Apr 2018 02:41:58 GMT

I just requested a cli and got a 10 day message. Did you ever get your increase? BTW, how long have you had your Discover card and what was your limit and scores when you applied? I’m kinda in the same boat. Just closed on a new home and applied for the Amex BCE and they only gave me a $1000 SL.

Re: Capital One CLI 2-3 Day Message

TiggerDat — Tue, 03 Apr 2018 14:30:49 GMT

I didn't read all the replies, so I am sorry if what I say was already said.

Don't get a second CapOne card, as it will be a HP at all three bureaus. They are notorious for this. Instead use the card PIF each month, then reapply until they give you a limit increase. Don't hold your breath waiting for that though. If or when you have a good score apply with another bank that has a good rewards card and will only pull 1 credit bureau, which basically means every other bank out there! When your annual fee for the QS1 card comes due ask for them to remove it. Keep asking until they waive it for one year, then repeat the process the next year. Eventually you will find they will eliminate the fee, then put the card in the sock drawer. If you need another 1.5% card for general spend there are cards out there and now there are cards which have 2%, so get that card and PIF each month. Banks are always more willing to extend credit to those who PIF and use the card wisely.

Other things which will help your report. Get a limit past $2500 on a regular (not store card), as this will boost your score! Use the entirety of your credit limit at least once, this sets a threshhold which some banks will check and use when you apply to determine your limit. Some banks chase limits, other chase upper limits! (Upper limit is the most you have ever used.) Some do both, depending on your score you get the larger. Some do averages, some do DTI, and some do whatever they want. Use no more than 10% of your limit on any one card to max your score right before you apply. Never use more than 40% of your limit individually or combined if you have a usage of 40% on all cards. Never close a card unless you really have to or it becomes too much of an issue. Except as follows: Close accounts which have an AF when your score permits you to have cards without annual fees and the bank won't do anything about the AF on a permanent basis. Close accounts which have an AF, but have rewards, if the rewards don't offset the AF fee at least (basically airline cards where you don't really use them often enough to make the miles work for you!). Close any card which is too difficult to deal with, horrible customer service, long holds on payments for no reason, you know just annoying stuff some of the subprime or slightly shaky banks do. Always use the card which offers the best rewards for the purchase! Don't get duplicate rewards cards, having three 1.5% cash back cards might make you report look good, but really you have no need for so many cards with the same rewards.

Hopefully you will get to the point where closing cards might actually be a good thing to do because your limits are so nice and you can figure out which 5-8 cards are best to keep because they offer rewards which are unique.

Always PIF if you can. If you can't then balance transfer and take advantage of 0% for 12 months, but don't let it become a habit or a need!

The ideal is to keep your rewards for as long as you can or use them to pay off balances. Keeping them as long as you can means that you basically are now saving. (I have save 150,000 flight miles...)

Re: Capital One CLI 2-3 Day Message

Anonymous — Wed, 04 Apr 2018 10:30:17 GMT

@Anonymouswrote:
I just requested a cli and got a 10 day message. Did you ever get your increase? BTW, how long have you had your Discover card and what was your limit and scores when you applied? I’m kinda in the same boat. Just closed on a new home and applied for the Amex BCE and they only gave me a $1000 SL.

For what its worth Cap1 denied my CLI request several times on my QS. This card had started as a QS1 with a $500 limit and grew to $8250 and upgraded to QS. Then nothing.

So I applied for the Venutre One (for the 0% 12 mos) and they gave me a $20k limit.

From my readings here others have had this experience as well.

Re: Capital One CLI 2-3 Day Message

Anonymous — Wed, 04 Apr 2018 12:12:36 GMT

My own tale is kind of funny: I got a Platinum unsecured MC last February, PC'ed it to QS MC in June, and received a $500 Credit Steps increase in August. I had understood from my reading here that this card would probably be stuck in the "starter" bracket, and when I tried for a CLI in February and was declined, I figured that this was how it was going to be. In the meantime, I had checked the Cap One prequal page right after New Year's and found that I was eligible for a new QS with an APR considerably lower than my QS MC. So I went ahead and applied, and got a QS Visa Signature with a $10K limit.

So, a couple of weeks ago, based on reading a thread here - I can't remember which one it was right now, unfortunately - I decided to try again with the "luv button". I was asked for more information than usual (notably, I was asked what amount I wanted to apply for, and put down $14,000, or 4x my then-current CL), and pressed the button - and hey presto, I got a $2,500 CLI! That brings my QS MC to a nice round $6,000 CL, which means that when I combine it into my QS Visa this summer as I've been planning to since I got the new card, I'll have at least a $16,000 CL, maybe more if I'm eligible for a CLI on the new card come June/July.

Re: Capital One CLI 2-3 Day Message

LXRM36 — Wed, 04 Apr 2018 13:42:59 GMT

I have been on a long road to rebuilding credit for several years now. I got the CO Visa Platinum card long ago. It has always carried a $2K CL. Then, during more of my true rebuilding phase, I got a different CO MC Platinum, a $1K limit.

In Oct 17 I applied for a Chase Sapphire Reserve card. Instant $11K approval. I decided to go for a CLI on the CO cards; MC first, then the Visa. MC was approved to $1,750. Visa, 2-3 day online message.

Every single time, I have received the message that my monthly payments were too low. This didn’t make sense as I have paid $50-$250 above the minimum every single month for (now) 17 straight months. I just got off the phone with them. And their message is not very clear.

When you get the letter, explanations for monthly payment too low say to make more than the minimum payment for three months, and apply for the CLI again. What is actually the truth, and it DOES NOT say, is that it is an average of every single payment made. So, if you do like I did, and set the minimum to automatically come out to ensure CO ALWAYS gets paid, you lose because that is two payments in a month instead of the one. So you have a payment for $200 and a payment for $25, and your average “monthly” (term used loosely) payment is $112.50. Man, even the people who pay $100 a week are screwed on this!

It makes no sense. There’s nothing anyone can or wants to do about it. I’m just trying to expand my limits for utilization purposes. I don’t really need the cards. The extra available could be a big help though.

Guess I shouldn’t lose too much sleep over it! I hear those PC’s aren’t approved for anything above $3,500 anyway.

- Long time reader, first time poster. No idea how to do this signature thing, but I’ll adlib!
BOA Auth User - $15.9K
CO Plat Visa - $2K
BOA Rewards Cash - $500
CO Plat MC - $1.75K
DESCO FCU - $10K
Synchrony Value City - $4K
Best Buy - $3.5K
Synchrony Care Credit - $2.5K
Chase Sapphire Reserve Infinite - $13.5K
AMEX BCP - $12K
Chase Marriott Rewards Signature - $7.5K

Re: Capital One CLI 2-3 Day Message

Anonymous — Wed, 04 Apr 2018 18:11:01 GMT

@Anonymouswrote:
I just requested a cli and got a 10 day message. Did you ever get your increase? BTW, how long have you had your Discover card and what was your limit and scores when you applied? I’m kinda in the same boat. Just closed on a new home and applied for the Amex BCE and they only gave me a $1000 SL.

I never did get my increase, but after I closed on my mortgage I went on a mini app spree so if they thought I had too many inquiries before, I definitely do now. I did end up applying for a new CO Platinum with the hopes of PCing to a QS in the future and they approved me for a $3,000 limit, which is fine for now. On the same day, 1/11 I applied for the Discover Card and was approved with a SL of $9500, which blew me away! I was hoping for $3,000 and thought $5,000 would be amazing! Also applied for AMEX BCE the same day and they hated me and told me to go away and never come back. I have a modest income, but a good investment profile and Discover did ask about money in savings and investments, I am assuming that helped me out greatly.

Re: Capital One CLI 2-3 Day Message

Anonymous — Sun, 08 Apr 2018 01:14:11 GMT

Thanks for the response. I did end up getting my CLI from Cap One. Went from 1500 to 3500. Because I had a hard time applying initially due to a system issue, I ended up applying for the Amex BCE. They only approved me for 1k. Because I just purchased my new home and it needs some work, I was hoping to get a descent limit and take advantage of the intro 0% apr. I don’t want to use the Cap One card since I’ll be paying too much interest on it. I def can’t do anything with the Amex SL. I’m wondering if I should take another hit and try for the Discover It card. I guess I’m going to have to sleep on it some more because I’ve heard my score is already likely to take a dive down when the new mortgage reports. Decisions decisions. I appreciate your input and wish you well with your credit endeavors. We’ll get there!

Re: Capital One CLI 2-3 Day Message

Meanmchine — Sun, 08 Apr 2018 01:36:48 GMT

"....(I think I received my credit steps increase and asked for 1 or 2 CLI in that time)"

Just a quick question. Was your last CLI within the last 6 months? Cap1 allows only 1 CLI per account every 6 months

Re: Capital One CLI 2-3 Day Message

Anonymous — Sun, 08 Apr 2018 01:49:22 GMT

Not really. I got 3 CLI for each account at the same time but that was more than 2 years ago. I have to wait a bit before I request CLI with them since I have some credit fixing myself at the moment

Re: Capital One CLI 2-3 Day Message

Shooting-For-800 — Mon, 09 Apr 2018 23:09:08 GMT

7-10 message usually good news (mine was $30k at 13.9%)

2-3 message usually bad.