topic Re: Capital One Disappointment in Credit Cards

Capital One Disappointment

Iusedtolurk — Fri, 15 May 2020 20:20:47 GMT

Today I decided to call Cap1 about my secured card turning unsecured.

After waiting on hold for a half hour and the call dropping I called back and elected the option to have them call me.

When they called me a hour later I really could not understand the rep but did get the gist of it that he did not have the authority to handle my request so I requested a supervisor.

Placed on hold for another 30 minutes and finally a clear voice and easily understandable lady informed me (after giving all my info again) somehow I was transfered to the wrong dept. and that she would connect me to the right dept.

Placed on hold for around 15 minutes and a male rep answered (gave all my info again) and asked how could he help.

I explained my account was 2 years 2 months old and I wanted it to be unsecured. Never late, always paid way before it was due, PIF sometimes, carried small balances most times etc.

He informed me that Cap1 stopped upgrading their secured cards to unsecured in late 2018 so they remain secured but you can close the account and get another card.

Not going to happen I do not like the 3 hard pulls they do and don't want a new account at this time and what comes with it.

I do appreciate that they were the first card in my credit rebuild journey but they will also be the first one I will close in the near future due to no potential growth and remaining secured and also being my lowest limit card now.

If anyone is beginning their credit rebuild you may want to skip Cap1s Forever Secured Credit Card.

Re: Capital One Disappointment

BmoreBull — Fri, 15 May 2020 21:43:44 GMT

I can understand where you’re coming from. I had a secured cap one back in 2007 when they were still graduating. I got this one here this time around and didn’t research it first. I had been turned down for Citi secured so I grabbed a discover and cap one. I do appreciate them giving me a card, but after I get better cards and limits, I’m going to get rid of it. I just can’t see having that money tied up forever.

Re: Capital One Disappointment

Remedios — Fri, 15 May 2020 23:22:24 GMT

Why would anyone skip this card?

Secured credit cards that graduate are not the norm.

Whole point of secured card is to get you started, and once it outlives its usefulness, it's bye bye time.

While I understand your disappointment, there is nothing "wrong" or predatory about their secured cards.

They do their job, and really, that's the only expectation one can have from that particular product.

Re: Capital One Disappointment

SweetCreditObsession — Sat, 16 May 2020 00:34:59 GMT

Sorry that this happened and thanks for the data points.

Re: Capital One Disappointment

MrZero — Sat, 16 May 2020 08:53:09 GMT

Yep, I found out about a week after I paid my desposit late last year, I wish I would've read more about it beyond some out of date reviews and especially here before I applied for it, would've saved me the triple pull. Was already approved and recieved my secured Discover (which had I checked the prequal page I might not have actually needed) so it was kind of reduntant anyway, with no rewards it was relegated to being used in my Discover downtime which is now reserved for my NFCU Cash Rewards card. I should get the $300 increase in a couple weeks but it's already been socked with only having my $1.99 Hulu sub on it. Since there's no AF I don't see a point in cancelling it after it ages past one year but I'm not ruling it out. I figured I'd at least have a foot in the door with CapOne but I'm not sure if I'd want to take another triple pull next year.

It has a role but there are much better secured card options out there. Oh and yeah, their support isn't so good either.

Re: Capital One Disappointment

Anonymous — Sat, 16 May 2020 10:50:05 GMT

It is understandable that a person would be not pleased if they could not graduate a secured card. The playing field has changed with time.

Back not too many years ago, Capital One, Wells Fargo, Bank of America, Discover, USAA and Citi Bank all offered Secured Cards (suspect there were others too such as US Bank and SDFCU offered by another poster)!

Say this with "hands on" knowledge holding such cards.

Bank of America graduated me in nine months and I felt so good (norm was 12 months). In the current market place the Secured to graduate Cards seems to have been lost and it is most unfortunate!

Keep the faith, the market place used to be stable and changed little. Today, it changes over night and the only thing you can be sure of is there is nothing to be sure about!

Re: Capital One Disappointment

Red1Blue — Sat, 16 May 2020 10:43:01 GMT

It happens some time. I have 7 secured cards now. When got my first cards I knew they would not graduate. Later I applied for cards that graduate. Try SDFCU and US Bank. They do graduate.

Re: Capital One Disappointment

recoveringfrombk7 — Sat, 16 May 2020 14:18:22 GMT

@Remedios wrote:
Why would anyone skip this card?
Secured credit cards that graduate are not the norm.
Whole point of secured card is to get you started, and once it outlives its usefulness, it's bye bye time.
While I understand your disappointment, there is nothing "wrong" or predatory about their secured cards.
They do their job, and really, that's the only expectation one can have from that particular product.

I think it's fair to say that given that there are options that graduate and also that there are secured cards that do not cost a HP, the offering from Cap1 should really be a last resort. Just my opinion.

Re: Capital One Disappointment

Remedios — Sat, 16 May 2020 14:24:58 GMT

@recoveringfrombk7 wrote:
@Remedios wrote:
Why would anyone skip this card?
Secured credit cards that graduate are not the norm.
Whole point of secured card is to get you started, and once it outlives its usefulness, it's bye bye time.
While I understand your disappointment, there is nothing "wrong" or predatory about their secured cards.
They do their job, and really, that's the only expectation one can have from that particular product.

I think it's fair to say that given that there are options that graduate and also that there are secured cards that do not cost a HP, the offering from Cap1 should really be a last resort. Just my opinion.

When one applies for a secured card that doesnt graduate, one shouldn't expect the card to graduate.

OP applied at least 6-7 months after Capital One stopped graduating their cards. At the time they applied, nothing on their website stated that their secured card graduates.

While they were graduating secured cards, it was clearly spelled on their website.

This isnt about the value of cards that graduate, it's about expecting something to happen that was never promised in a first place.

Re: Capital One Disappointment

Anonymous — Sat, 16 May 2020 15:24:00 GMT

There is promise of still in securing cards as of 5/16/20 on the terms of the secured card. "If your account is deemed eligible for unsecuring, we will return your security deposit to your account as a statement credit." That is contrary to the multiple phone calls saying "we do not unsecure cards as of 20xx" and frankly needs to be noted in a change of terms letter prior to the terms taking effect.

Re: Capital One Disappointment

Remedios — Sat, 16 May 2020 15:34:24 GMT

@Anonymous wrote:
There is promise of still in securing cards as of 5/16/20 on the terms of the secured card. "If your account is deemed eligible for unsecuring, we will return your security deposit to your account as a statement credit." That is contrary to the multiple phone calls saying "we do not unsecure cards as of 20xx" and frankly needs to be noted in a change of terms letter prior to the terms taking effect.

Here?

Re: Capital One Disappointment

GApeachy — Sat, 16 May 2020 15:47:43 GMT

@Iusedtolurk wrote:
If anyone is beginning their credit rebuild you may want to skip Cap1s Forever Secured Credit Card.

Yeah and if anyone reads this they can go to Cap1's page and read up on it: https://www.capitalone.com/credit-cards/LP/secured-mastercard-gen-faq/

Doesn't mention unsecuring in any of the facts on that page.

Re: Capital One Disappointment

Anonymous — Sat, 16 May 2020 15:51:18 GMT

You are right. It is not there. It is here:

https://www.capitalone.com/credit-cards/secured-mastercard/

scroll down to "Rate and Fee Information" then in the terms look for "Why Does Capital One require a security deposit?"

Re: Capital One Disappointment

GApeachy — Sat, 16 May 2020 15:57:54 GMT

@Anonymous wrote:
You are right. It is not there. It is here:
https://www.capitalone.com/credit-cards/secured-mastercard/
scroll down to "Rate and Fee Information" then in the terms look for "Why Does Capital One require a security deposit?"

That's crazy! No wonder CSR's are confused!

Re: Capital One Disappointment

Remedios — Sat, 16 May 2020 16:06:10 GMT

@Anonymous wrote:
You are right. It is not there. It is here:
https://www.capitalone.com/credit-cards/secured-mastercard/
scroll down to "Rate and Fee Information" then in the terms look for "Why Does Capital One require a security deposit?"

Look, I dont have a horse in this race.

It states "IF your account..." with if being the key word. There is nothing binding there. It's not fair, but legally one could make an argument that statement is correct, because "if" could happen, only not at this time.

In your other thread, there is a bunch of "could". Could is not the same as "will", again, there is not a promise there, merely referencing a possibility, because they havent updated the page.

Hanging onto a $200.00 secured card and agonizing over it is silly. You stated your scores are in 800s now. Close it and take your money. 200 is way to low to affect your utilization, it will be on your report for up to 10 years, and you're really not missing out on anything

Capital One loves when customers keep their secured cards, not because they are desperate for $200, but because their CC business is predicated on ABS.

So your 800 score jacks up the value of that particular portfolio.

It's easier to sell it when you claim average score is 625 vs 450.

Anyway, read up about it so you can get a clearer picture on why they want you to do exactly what you're doing right now, which is hanging onto a card that has no future. Might as well carry a rock in your valet.

Do I personally think they should be more transparent, absolutely.

Do I think agony over something that has outlived its purpose is silly, double absolutely.

Do I think you can do a lot better, triple absolutely.

You're not going to change their mind either way.

Re: Capital One Disappointment

Anonymous — Sat, 16 May 2020 16:14:25 GMT

It's $50 tied up for the time being, and it would age for 10 years on my report so I'm not that worried about it. Absolutely "if" is a big word, but the problem is they are claiming and have been claiming that they "do not" which is different. For those that read that, it's almost a bait and switch which they should be called out on. It's principle more than anything in my opinion. If we can at least hold them to be more clear, that's a win.

Re: Capital One Disappointment

BmoreBull — Sat, 16 May 2020 16:20:02 GMT

@Anonymous wrote:
There is promise of still in securing cards as of 5/16/20 on the terms of the secured card. "If your account is deemed eligible for unsecuring, we will return your security deposit to your account as a statement credit." That is contrary to the multiple phone calls saying "we do not unsecure cards as of 20xx" and frankly needs to be noted in a change of terms letter prior to the terms taking effect.

That’s good information to know. I wonder however , if it’s brought up to them, will they honor it.

Re: Capital One Disappointment

Anonymous — Sat, 16 May 2020 16:23:00 GMT

I tried, and they didn't for me. From what I've read, years ago the CSRs has a lot more empowerment to positively impact consumers. As a result, there was added risk for clis, and approvals of certain things at a non-Uniform basis. C1 has since stripped most of the empowerment and allowed much of this to be automated with no manual input or override. The only way to change this is to hold them to it through other agencies, but that would require multiple people to push back.

Re: Capital One Disappointment

Iusedtolurk — Sat, 16 May 2020 19:09:21 GMT

@Remedios wrote:
@recoveringfrombk7 wrote:
@Remedios wrote:
Why would anyone skip this card?
Secured credit cards that graduate are not the norm.
Whole point of secured card is to get you started, and once it outlives its usefulness, it's bye bye time.
While I understand your disappointment, there is nothing "wrong" or predatory about their secured cards.
They do their job, and really, that's the only expectation one can have from that particular product.

I think it's fair to say that given that there are options that graduate and also that there are secured cards that do not cost a HP, the offering from Cap1 should really be a last resort. Just my opinion.

When one applies for a secured card that doesnt graduate, one shouldn't expect the card to graduate.
OP applied at least 6-7 months after Capital One stopped graduating their cards. At the time they applied, nothing on their website stated that their secured card graduates.
While they were graduating secured cards, it was clearly spelled on their website.

This isnt about the value of cards that graduate, it's about expecting something to happen that was never promised in a first place.

To clarify in my previous statement:

I explained my account was 2 years 2 months old (FEB, 2018-EARLY 2018)and I wanted it to be unsecured. Never late, always paid way before it was due, PIF sometimes, carried small balances most times etc.

He informed me that Cap1 stopped upgrading their secured cards to unsecured in late 2018 so they remain secured but you can close the account and get another card.

And yes they should update the section below RATES AND TERMS that states "If your account is deemed eligible for unsecuring, we will return your security deposit to you as a statement credit. " to eliminate confusion.

As stated it was my first card in my credit rebuilding (my oldest account)and I was under the impression it would be unsecured at some point. When I was looking for a card to start out with I looked at Open Sky which stated they did not do hard pulls for their secured card but that they stay secured through the life of the account (main reason for not applying) so hearing about Cap1 becoming unsecured from different people I went for it. (not knowing at the time about the 3 hardpulls).

I know a lot more now than I did then as I really didn't pay attention to credit until recently.

Heck my 2nd card I got was Credit1 a few months later and looking at it now I shudder at the fees (back then I was just glad to get a card).

I look at cards like First Premier now (those annual fees and maintenance fees and different charges) and really shake my head now but back then they would have seemed to be good prospects lol. They do serve a purpose though.

Like I said I'm still learning and while I'm learning my credit score is steadily going up and I make it my business to help others who have the same knowledge now that I had then.

Re: Capital One Disappointment

GApeachy — Sat, 16 May 2020 19:19:28 GMT

@Anonymous wrote:
The only way to change this is to hold them to it through other agencies, but that would require multiple people to push back.

Push back what though? You can't really argue an "if".