topic Re: I just don’t understand how capital one makes their decisions in Credit Card Applications

I just don’t understand how capital one makes their decisions

Alucard — Sat, 21 May 2022 13:56:34 GMT

I have two capital one credit cards (QS and QS1 [upgrades from a plat]), both are low limit with high APR. I got them during my credit rebuild and rarely use them due to how low the limits are. Every time I try and request an increase i'm instantly declined. When I try and check their pre screen I am generally given 3 cards Savior One, Venture One, or a quicksilver all with high APRs (26%ish). I have a 720-750 credit score (EX being the highest). I just don't understand why I have other cards with a 12% APR and 25k limit but capital one seems me such high ris

Re: I just don’t understand how capital one makes their decisions

Beefy1212 — Sat, 21 May 2022 09:25:05 GMT

C1 takes on a lot of starter accounts they make their money on people screwing up, and/or fees. This is the same model just about every issuer uses... screw ups and fees.

Because of their target demographic on most cards they tend to give very low limit cards to limit exposure. Which flies in the face of what I am about to say. They give cli's based on you using the card recklessly like 80-90 utilization, every month you do that for 3-6 months and they will shower you with credit limits.

As for your score it is good but not stellar you also used a screen shot of a vantage3 score which is largely meaningless where are you normally checking your score?

Re: I just don’t understand how capital one makes their decisions

pinkandgrey — Sat, 21 May 2022 11:54:29 GMT

This is standard CapOne behavior. They approve a lot of starter cards with low limits which rarely grow. I would probably just dump those cards in favor of a better one. Even another Capital One card could be better. CapOne won't give you an increase on the bucketed card, but then turn around and approve you for a 10k SL on a new card lol.
Good luck with whatever you decide!

Re: I just don’t understand how capital one makes their decisions

SomewhereIn505 — Sat, 21 May 2022 12:14:56 GMT

They just denied me a CLI while using an old (2 months old) credit report. Really CrapOne - using data from almost 2 months ago? 🤦‍♀️

Re: I just don’t understand how capital one makes their decisions

Brian_Earl_Spilner — Sat, 21 May 2022 13:13:43 GMT

@Beefy1212 wrote:
C1 takes on a lot of starter accounts they make their money on people screwing up, and/or fees. This is the same model just about every issuer uses... screw ups and fees.

Because of their target demographic on most cards they tend to give very low limit cards to limit exposure. Which flies in the face of what I am about to say. They give cli's based on you using the card recklessly like 80-90 utilization, every month you do that for 3-6 months and they will shower you with credit limits.

As for your score it is good but not stellar you also used a screen shot of a vantage3 score which is largely meaningless where are you normally checking your score?

Cap1 is eliminating overlimit and late fees. They make most of their money from asset backed securities, which is a reason their cards don't grow. Once a card profile is packaged and sold as an ABS based on its credit rating, it's near impossible to change that card's rating, because it would requiring repackaging. Which leads to bucketed cards.

Re: I just don’t understand how capital one makes their decisions

Brian_Earl_Spilner — Sat, 21 May 2022 13:15:15 GMT

@SomewhereIn505 wrote:
They just denied me a CLI while using an old (2 months old) credit report. Really CrapOne - using data from almost 2 months ago? 🤦‍♀️

Amex uses 2 month old data once you become a member.

Re: I just don’t understand how capital one makes their decisions

Suzette2 — Sat, 21 May 2022 13:49:20 GMT

I'm not a cap1 fan. I've had mine 2 years snd it's grown verrrrry slowly to just $700 CL.

Before I found this forum I had high utilization each month on it because, I thought, of the cash back on my QS1, and I wanted to grow the card. They rarely gave me an increase and only $100 at a time. Now, I have it a zero balance - do AZEO elsewhere- and it's sock drawered for aging purposes. After I've had it a while I'll just close it as I've already moved on.

my card is clearly bucketed. My daughter, on the other hand, got an initial CL on her QS1 of 3k- after 6 months they raised it to 7k. She rebuilt her credit just 3 years ago. 🤷🏼‍♀️

Re: I just don’t understand how capital one makes their decisions

FinStar — Sat, 21 May 2022 14:00:20 GMT

@Alucard wrote:
I have two capital one credit cards (QS and QS1 [upgrades from a plat]), both are low limit with high APR. I got them during my credit rebuild and rarely use them due to how low the limits are. Every time I try and request an increase i'm instantly declined. When I try and check their pre screen I am generally given 3 cards Savior One, Venture One, or a quicksilver all with high APRs (26%ish). I have a 720-750 credit score (EX being the highest). I just don't understand why I have other cards with a 12% APR and 25k limit but capital one seems me such high risk

When it comes to Capital One's business model, specifically with tranched accounts or specific CC offers, below is an article that provides more insight about ABS:

https://ficoforums.myfico.com/t5/General-Credit-Topics/Credit-Card-Asset-Backed-Securities-ABS-and-why-some-subprime/m-p/5083619

Re: I just don’t understand how capital one makes their decisions

Suzette2 — Sat, 21 May 2022 14:07:46 GMT

@FinStar wrote:
@Alucard wrote:
I have two capital one credit cards (QS and QS1 [upgrades from a plat]), both are low limit with high APR. I got them during my credit rebuild and rarely use them due to how low the limits are. Every time I try and request an increase i'm instantly declined. When I try and check their pre screen I am generally given 3 cards Savior One, Venture One, or a quicksilver all with high APRs (26%ish). I have a 720-750 credit score (EX being the highest). I just don't understand why I have other cards with a 12% APR and 25k limit but capital one seems me such high risk

When it comes to Capital One's business model, specifically with tranched accounts or specific CC offers, below is an article that provides more insight about ABS:

https://ficoforums.myfico.com/t5/General-Credit-Topics/Credit-Card-Asset-Backed-Securities-ABS-and-why-some-subprime/m-p/5083619

Very cool and informative. I am def a 'convenience' user- one who PIF every month. I used to carry a balance but no longer. Interesting how they pool the cards and why.
maybe I'll close it now instead of giving them the benefit of using it to skew their algorithms 😂

Re: I just don’t understand how capital one makes their decisions

AverageJoesCredit — Sat, 21 May 2022 22:06:59 GMT

@Alucard wrote:
I have two capital one credit cards (QS and QS1 [upgrades from a plat]), both are low limit with high APR. I got them during my credit rebuild and rarely use them due to how low the limits are. Every time I try and request an increase i'm instantly declined. When I try and check their pre screen I am generally given 3 cards Savior One, Venture One, or a quicksilver all with high APRs (26%ish). I have a 720-750 credit score (EX being the highest). I just don't understand why I have other cards with a 12% APR and 25k limit but capital one seems me such high risk

It is what it is. Imo, stop looking toward Cap One to expand, but other lenders . Cap One is at least transparent about their apr so there should be no shock here.

Re: I just don’t understand how capital one makes their decisions

SUPERSQUID — Sat, 21 May 2022 22:06:36 GMT

@Alucard wrote:
I have two capital one credit cards (QS and QS1 [upgrades from a plat]), both are low limit with high APR. I got them during my credit rebuild and rarely use them due to how low the limits are. Every time I try and request an increase i'm instantly declined. When I try and check their pre screen I am generally given 3 cards Savior One, Venture One, or a quicksilver all with high APRs (26%ish). I have a 720-750 credit score (EX being the highest). I just don't understand why I have other cards with a 12% APR and 25k limit but capital one seems me such high risk

IMHO,

Get rid of the yearly fee QS, you state they offer the savor one? grab it because even with a low limit 3 pct cb on groceries and dining is excellent. everybody has to eat so why not put 3 pct of it in your pocket, you dont need a giant limit for that.

Re: I just don’t understand how capital one makes their decisions

Tomatoshadow2 — Tue, 24 May 2022 08:30:50 GMT

@SUPERSQUIDgotta get that cashback on all the good food haha

Re: I just don’t understand how capital one makes their decisions

Lucifer — Tue, 24 May 2022 12:03:52 GMT

So the Devil here has had a C1 plat card for like evahhhhhh Lucy may have had some credit issues in the past (I was a devilish little devil way back when - Cain still makes fun of me for it)

C1 let me back in the credit game and that card (now 20 years old) grew from secured to CLs of 300, 500 to 700 to 1000 over the course of 19 years. Then the other day I log in and C1 is like het Devil man - we upped you to 5K.

Maybe they dumped little 'ol pitch forked tail me into a different ABS batch?

I dunno but I didn't even ask for the CLI.

C1 is much like my Dad in that I do not always understand their ways.

I suppose, unlike my residents here in hell with me - there is hope for your C1 card.

Now if I could get them to upgrade me to the fancy Savor or QS cards.... Oh - if that happens I might turn down the heat here in hell. Well, for like and hour or two. I'm still the devil afterall.

Re: I just don’t understand how capital one makes their decisions

SUPERSQUID — Tue, 24 May 2022 13:47:32 GMT

@Lucifer wrote:
So the Devil here has had a C1 plat card for like evahhhhhh Lucy may have had some credit issues in the past (I was a devilish little devil way back when - Cain still makes fun of me for it)

C1 let me back in the credit game and that card (now 20 years old) grew from secured to CLs of 300, 500 to 700 to 1000 over the course of 19 years. Then the other day I log in and C1 is like het Devil man - we upped you to 5K.

Maybe they dumped little 'ol pitch forked tail me into a different ABS batch?

I dunno but I didn't even ask for the CLI.

C1 is much like my Dad in that I do not always understand their ways.

I suppose, unlike my residents here in hell with me - there is hope for your C1 card.

Now if I could get them to upgrade me to the fancy Savor or QS cards.... Oh - if that happens I might turn down the heat here in hell. Well, for like and hour or two. I'm still the devil afterall.

YOU ARE ON FIRE !!!!! I never got a jumbo cli like that, maybe because i am not beezlebub, I will add that to my notes on cap 1 cli dp's

Re: I just don’t understand how capital one makes their decisions

Creditsen — Tue, 24 May 2022 17:12:43 GMT

Capital one messaged me to let me know they were lowering my rate for not enough utilization. I use the card regularly but my low amount isn't enough. I'm not sure how that benefits a company to remove a limit from a customer that has never missed a payment. But I'm not in the business of credit. I'm with you, I don't understand their choices either.

Re: I just don’t understand how capital one makes their decisions

Anonymous — Tue, 24 May 2022 17:26:17 GMT

@Creditsen wrote:
Capital one messaged me to let me know they were lowering my rate for not enough utilization. I use the card regularly but my low amount isn't enough. I'm not sure how that benefits a company to remove a limit from a customer that has never missed a payment. But I'm not in the business of credit. I'm with you, I don't understand their choices either.

Because basically credit limits aren't free to the issuer. Assuming a bank had somehow managed to identify customers who will never default, they still can't give them all $100K CLs, because the issuer needs a certain level of reserves to cover the potential obligations (the issuer is paying the merchants for all your charges, minus a fee!).

So given some implied cost to your credit limit, by CLDing you they can potentially give it to people who will use it more, generating swipe fees. Makes business sense. And if the CLD annoys you and you close the card, well, you paid on time but weren't generating enough profit, so not much loss.....

Re: I just don’t understand how capital one makes their decisions

Zoostation1 — Wed, 25 May 2022 03:10:57 GMT

@SUPERSQUID- Since you have a Savor One and are also post BK7 (I'm just over 4.5yrs since filing and didn't start rebuilding till 11/21). How long did you wait to apply for that card? It's one of the two cards on my radar for the future. The other is Amex BCP at some point past the 5yr1mo rule since they have the AF waiver and were not IIB. I currently have a QS1 2k limit that I've used heavily. I'm averaging over $2150/month spend on it over the 4 months I've had it (partly due to using CC for 95% of my non rent/utility spend, partly to coax an increase and see how bad I'm bucketed) and a secured Discover ($400 limit, hopefully about to be unsecured with a CLI if I'm lucky since I've hit 6 months and not paid any interest, ~$300 month spend). Sorry if this is pretty long winded.

Re: I just don’t understand how capital one makes their decisions

jamesdwi — Wed, 25 May 2022 03:18:42 GMT

The best path for CapOne cards, is if you are in the rebuild phase. Get a CapOne card, depending on your progress to that point it may have a annual fee, but it will most likely come with a low limit as others have mentioned. Use the card, build your history, add some store cards to help pad your AAoA long term. When your score is back in good area, 680 or more, and some good credit history, apply for card with a more freindly lender for people with average to good credit scores. Chase, or Amex to mind. They are more likely to grow with you. At this point you can even consider applying for one of CapitalOne cards for people, there Venture card is one I got, with a nice signing bonus. Even though my first rebuilder card is stuck with a $2,500 limit. They approved my Venture card with a SL $15,000. Kept the card for a couple years, then closed it, it wasn't woth the annual fee.

Re: I just don’t understand how capital one makes their decisions

SUPERSQUID — Wed, 25 May 2022 05:45:10 GMT

@Zoostation1 wrote:
@SUPERSQUID- Since you have a Savor One and are also post BK7 (I'm just over 4.5yrs since filing and didn't start rebuilding till 11/21). How long did you wait to apply for that card? It's one of the two cards on my radar for the future. The other is Amex BCP at some point past the 5yr1mo rule since they have the AF waiver and were not IIB. I currently have a QS1 2k limit that I've used heavily. I'm averaging over $2150/month spend on it over the 4 months I've had it (partly due to using CC for 95% of my non rent/utility spend, partly to coax an increase and see how bad I'm bucketed) and a secured Discover ($400 limit, hopefully about to be unsecured with a CLI if I'm lucky since I've hit 6 months and not paid any interest, ~$300 month spend). Sorry if this is pretty long winded.

Hi, I got the savor one no af, no sub, 3k sl, 26.99 1 year 11 months post bk7 dc. i had a platinum in may of 2021 with a baby sl of 300. for 5 months i used 30 - 45 pct of the limit per month and pif AFTER the statement cut. after 5 months i upgraded it to QS and 3 days later cap 1 gave me a really nice automatic cli, 300 - 1800. then one month later in nov/21 in the cap 1 prequal savor one popped up and i took it.

since then i got my first automatic cli on the savor of 100 at 5 months, 3000 - 3100, usual baby cli expected from cap 1. i use the card for 20 - 30 pct of limit and pif, mostly groceries.

I got my 2nd cli on the QS at 11 months, i requested this one, 1800 - 2000.

I burned cap 1 for 5k in my bk7, my income is only 36k, my scores are 670's - 680's, my total util is 9 pct, my dti is low

Capital One Credit Limit Issue

Alucard — Fri, 06 Jan 2023 03:28:25 GMT

So I have two very old Capital One credit cards with low credit limits. No matter what I do everytime I hit the request CLI button I get denied. The average credit limit on my other cards is about 15k with 35k being the highest. My fico scores are around 720 and I have low utilization and only 2 inquiries in the last 12 months. Does anyone have any insight regarding their process?

I used their pre-approval link just to see if they would offer anything better and I got 3 card offers for customers with "good credit" yet they offered me the "one" version for two cards and the APR they are offering me is 29%? Let me be clear, I'm not interested in getting a new capital one credit card, but I am interested in raising the limit on the two that I have.