topic Re: What is bad about Capital One? in Credit Cards

What is bad about Capital One?

Anonymous — Mon, 21 May 2012 16:09:30 GMT

Please note, this isn't a snarky question, I'm curious because I've read a lot on this board over the last couple months. The complaint I see over and over again about Capital One is the lack of credit limit increases even years down the road. It seems like the limit you qualify with is the one you are stuck with for years no matter how much your credit improves. Additionally, good luck getting a customer service rep who can actually help you if you do have a problem.

Now, I'm not minimizing those problems as they are very real issues. But, let's just say for example that someone like my husband wants 0% financing for a washer/dryer at Bestbuy which is now backed by Capital One. He is not high income, he makes $27K a year. The company he is working for is working their way into the nuclear technologies supply business which means my husband will have to get additional certifications and homeland security clearances. When that happens, his income will only increase to about $32k annually. (It scares me that the people who assemble our nuclear power station components are only making around $30k annually, I think bankers earn more for significantly less responsibility, but that's a whole 'nother topic)

With his income, I see no reason for a credit limit for a traditional card of more than about $5k and maybe a $2k limit for a store card. He really has no business putting more than that on a credit card at any given time.Anything above that for him would just be bragging rights, though I understand that a lot of people have a valid reason for higher limits.

So, that being said, is Capital One really that bad of a deal for someone like him? Are there more negatives to capital one than the unchanging credit limit and the mediocre customer service?

Please feel free to add any negatives you've had with Capital One, especially if they vary from the typical lack of credit limit increases.. I especially want to hear any tales of balance chasing, because I hate that practice especially in the case of no lates or missed payments.

I'll add complaints to this as they come in..

Drawbacks to Capital One

CL doesn't grow

Poor customer service

3 Hard pulls for credit (may only be one for store cards)

Annual Fees for some cards

No product changing (have to close old card, 2 card limit?)

Infuriating nonfunctioning CLI button

Payment Holds (particularly new accounts)

Pro's to Capital One

Gives credit to riskier individuals at rates better than other subprime lenders

Balance chasing either nonexistant or very rare

APR changes for carrying a balance nonexistant or rare

No Foreign Exchange fees

Re: What is bad about Capital One?

BrokaToe — Sun, 20 May 2012 19:32:45 GMT

I too would be interested in hearing some others experiences with Cap1, as I just recently received one of their cards and would like to see what I may expect in the future.

Re: What is bad about Capital One?

clocktick — Sun, 20 May 2012 19:35:13 GMT

I have never heard a story of balance chasing from Cap One.

My best friend was just approved for their cash card a couple weeks ago and received a $7000 limit, no AF. Her salary is lower than your husband's. I never thought they were that bad. People tend to "outgrow" them and then take their frustrations out on Cap One for not growing with them. They just don't typically do that. They simply want you to apply for another card. Lots of people like their Venture card as well. I like their 0 forex fees and I never worry about them closing my card. I did have one bad experience with customer service but I wasn't going to let that one person "make" me hate the whole company and have me drop their card.

Re: What is bad about Capital One?

bichonmom — Sun, 20 May 2012 19:41:27 GMT

I think the main quips about Cap One are that it doesn't grow with you and their CS isn't great (understatement). Personally, I'm frustrated with their CS because I can call 5 times and get 5 different answers to the same question, each person swearing up and down that THEY are giving me the RIGHT answer. Another beef with them (now, I don't know how this works w/BB now that they are doing their CCs) is that they do 3 pulls for a CC. I mean, if Amex and Chase are willing to extend credit w/1 HP, what makes Cap One so special that they need 3?

Beyond that, my exp with them has been fine, but I never carried a balance for more than a couple of months during the 0% period. (That was actually a test to see if it might help me get a CLI with them. )

I'm curious to see how Cap One is handling the Best Buy cards. I don't have one, and how they handle these cards will determine if I choose to get one in the future. Does anyone know if they do 3 HPs for a BB card?

Re: What is bad about Capital One?

Mailak — Sun, 20 May 2012 19:41:43 GMT

I have had a $300 CL for almost 5 years for which I have paid $59 annually. I once tried clicking their online CLI request, which said they aren't offering it and review accounts on their own for CLIs. (Why have that option online?) To the extent that it helped me have a card, that was fine. They did give me a card but I did pay them for it. It just leaves a rather unsatifying feeling.

Re: What is bad about Capital One?

pipeguy — Sun, 20 May 2012 19:50:29 GMT

@clocktick wrote:
I have never heard a story of balance chasing from Cap One.

My best friend was just approved for their cash card a couple weeks ago and received a $7000 limit, no AF. Her salary is lower than your husband's. I never thought they were that bad. People tend to "outgrow" them and then take their frustrations out on Cap One for not growing with them. They just don't typically do that. They simply want you to apply for another card. Lots of people like their Venture card as well. I like their 0 forex fees and I never worry about them closing my card. I did have one bad experience with customer service but I wasn't going to let that one person "make" me hate the whole company and have me drop their card.

+1 Agree

(I'll add more later to this answer)

Re: What is bad about Capital One?

Anonymous — Sun, 20 May 2012 20:06:36 GMT

For all of their faults that others have mentioned (little to no credit line increases, lack of customer service, etc., all true by the way) I really find them to be the most consistent creditor I have. Do I like my $500 limit, no I do not. However, I will say that they never care about carrying a balance or what payments I am making. I had a balance on that card for 2 years during my worst financial times. The did not increase my APR. They did not balance chase me. They didn't care if I made 1 payment per month or 10. All of my other cards took AA against me during those times.

I closed another higher limit card I had with them back in 2009 (before I understood the consequences). I was treated the same with that card. Honestly, if I had to carry a balance right now, I would use my current Cap 1 card. They are the only CC issuer I currently have that would not care. Eventually I want to get a CU card that will hopefully be my go to card if I need to carry a balance. Until that happens, I'm leaving this one open. I like having a card where I don't have to worry about what I'm doing with it.

If you can get a card for average credit and not one of the rebuilder ones, you might get enough of a credit line for your needs. It's a trade off. The card probably won't grow much but at the same time you can use it without fear of repercussions. My file is very thin and I am still rebuilding so consider my opinion from that perspective.

Re: What is bad about Capital One?

RyVision — Sun, 20 May 2012 20:14:21 GMT

Jennifer;

Other than what you posted that you've heard for negatives, there aren't a lot. If you don't need CS for something (they're iffy in that dept), don't expect a CLI (unless you're put on the credit steps program) and need something to start or build\re-build a file, there really isn't anything wrong with Cap 1. and also don't mind 3 HPs (1 for each CB) when opening a Cap 1 card. All that is in reference to Cap 1 CCs, not store cards.

As far as BB is concerned, I would not be surprised to find out they only pull 1 CB if a persons info isn't too "iffy", if questionable, maybe 2 or all 3.

Those that seem to "hate" Cap 1 often were overjoyed when they first got their card from them. Then after that, noticed (as stated above) they wouldn't acknowledge the persons improved credit and that tends to make people wonder what they haven't done correctly (ie: it ticks them off). They forget Cap 1 may have been a good part of the reason they were able to get cards that were previously way out of reach.

You husband, if he has a clean file, shouldn't have much problem with a BB card handled by Cap 1. If the payments are on time, and the rest of his report is kept in order and he doesn't need CS or a CLI out of the blue, I'd expect he'd be happy with them. Essentially, do not allow them to allow you to slip up, is a good way to put it.

Re: What is bad about Capital One?

ajh5408 — Sun, 20 May 2012 20:21:05 GMT

On one hand, they issued me my first card, offered the Credit Steps program, and their CS has become somewhat more helpful over the past few years...

On the other hand, they HP all three credit reports, don't accept customer-initiated CLI requests, and seem utterly incapable of offering existing customers any type of concession beyond telling you to apply for a new card if you don't like what you've got.

For a while they offered some meaningful products on the banking side, but with the introduction of new fees and minimums this month, I can't say I see much value in doing business with them at all, aside from as a stepping stone to get you elsewhere!

[Actually, one more thing: Back when short-term deposit rates were higher, you could issue yourself a no-fee balance transfer check online (or use the ones that came with your statement) and float the money in a deposit account until the bill came due, without paying a penny in interest. For those with high limits who weren't concerned about util, this was profitable... Nowadays, it's still a nice feature for cashflow, but not particularly worthwhile for any other reason.]

Re: What is bad about Capital One?

No_You — Sun, 20 May 2012 20:35:22 GMT

I got a secured card through them I August and a 500 limit platinum rewards unsecured card in December. I am in the rebuilding phase. I've pumped several thousand dollars through the latter, and when I spoke to them today they said I'll get a whopping $250 increase in July. Only complaint I have is that they randomly hold payments which results in a denied transaction because the payment takes forever to clear. If you call they release the funds though. It's a stepping stone.

Re: What is bad about Capital One?

CreditCrusader — Sun, 20 May 2012 21:01:27 GMT

@Anonymous wrote:
For all of their faults that others have mentioned (little to no credit line increases, lack of customer service, etc., all true by the way) I really find them to be the most consistent creditor I have. Do I like my $500 limit, no I do not. However, I will say that they never care about carrying a balance or what payments I am making. I had a balance on that card for 2 years during my worst financial times. The did not increase my APR. They did not balance chase me. They didn't care if I made 1 payment per month or 10. All of my other cards took AA against me during those times.

I closed another higher limit card I had with them back in 2009 (before I understood the consequences). I was treated the same with that card. Honestly, if I had to carry a balance right now, I would use my current Cap 1 card. They are the only CC issuer I currently have that would not care. Eventually I want to get a CU card that will hopefully be my go to card if I need to carry a balance. Until that happens, I'm leaving this one open. I like having a card where I don't have to worry about what I'm doing with it.

If you can get a card for average credit and not one of the rebuilder ones, you might get enough of a credit line for your needs. It's a trade off. The card probably won't grow much but at the same time you can use it without fear of repercussions. My file is very thin and I am still rebuilding so consider my opinion from that perspective.

I'll say this for Cap1: They are the only CC lender who hasn't treated me like a sub-prime borrower...even when I didn't have a prayer of scoring a prime card (I now have 2).

They post payments in a timely fashion...don't hold my available credit hostage, regardless of payment size or the age of the account...and credit the AF like clockwork every time I ask.

I was once one of their biggest critics due to their legendary lack of willingness to grow. I now see that as a short-sighted approach to valuing a credit card. It isn't their job to grow with me. It's MY job to grow my credit profile...with or without their help.

Re: What is bad about Capital One?

Mike360 — Sun, 20 May 2012 21:07:06 GMT

1. worst customer service ever

2. no customer requets on credit limit increases

3. very rare do you get offers to upgrade

4. no room for growth on sub-prime cards. one you reach the max limit of a small amount it will never change

no foreign exchange fee's,good for newcomers and low apr are some of the plus stuff but all of those have never applied to me since i never travel out of country and i don't carry balances.

Re: What is bad about Capital One?

Anonymous — Sun, 20 May 2012 21:09:10 GMT

@CreditCrusader wrote:
I'll say this for Cap1: They are the only CC lender who hasn't treated me like a sub-prime borrower...even when I didn't have a prayer of scoring a prime card (I now have 2).

They post payments in a timely fashion...don't hold my available credit hostage, regardless of payment size or the age of the account...and credit the AF like clockwork every time I ask.

I was once one of their biggest critics due to their legendary lack of willingness to grow. I now see that as a short-sighted approach to valuing a credit card. It isn't their job to grow with me. It's MY job to grow my credit profile...with or without their help.

Totally agree. You said it much better than I did.

Re: What is bad about Capital One?

namvet — Sun, 20 May 2012 21:13:13 GMT

@CreditCrusader wrote:
@Anonymous wrote:
For all of their faults that others have mentioned (little to no credit line increases, lack of customer service, etc., all true by the way) I really find them to be the most consistent creditor I have. Do I like my $500 limit, no I do not. However, I will say that they never care about carrying a balance or what payments I am making. I had a balance on that card for 2 years during my worst financial times. The did not increase my APR. They did not balance chase me. They didn't care if I made 1 payment per month or 10. All of my other cards took AA against me during those times.

I closed another higher limit card I had with them back in 2009 (before I understood the consequences). I was treated the same with that card. Honestly, if I had to carry a balance right now, I would use my current Cap 1 card. They are the only CC issuer I currently have that would not care. Eventually I want to get a CU card that will hopefully be my go to card if I need to carry a balance. Until that happens, I'm leaving this one open. I like having a card where I don't have to worry about what I'm doing with it.

If you can get a card for average credit and not one of the rebuilder ones, you might get enough of a credit line for your needs. It's a trade off. The card probably won't grow much but at the same time you can use it without fear of repercussions. My file is very thin and I am still rebuilding so consider my opinion from that perspective.

I'll say this for Cap1: They are the only CC lender who hasn't treated me like a sub-prime borrower...even when I didn't have a prayer of scoring a prime card (I now have 2).

They post payments in a timely fashion...don't hold my available credit hostage, regardless of payment size or the age of the account...and credit the AF like clockwork every time I ask.

I was once one of their biggest critics due to their legendary lack of willingness to grow. I now see that as a short-sighted approach to valuing a credit card. It isn't their job to grow with me. It's MY job to grow my credit profile...with or without their help.

You make a good point and you are correct. It's not Cap One's job to increase your credit line. Same with any other card as well. You have to manage your own credit lines and make changes when necessary.

Re: What is bad about Capital One?

Anonymous — Sun, 20 May 2012 21:14:44 GMT

I would tend to disagree with any claim of 'your stuck there'.

Capitol One started me with something like a $750 starting CL.

Within two years they, without any asking or even without informing me that I know of, increased my limit up to $4500.

Its been there ever since.

The wifes CapOne,however, is still the $1250 limit she started with.

I use my cards far more aggressively than she does,so that may account for some of the reason CapOne gave me the increase...not sure.

Re: What is bad about Capital One?

Anonymous — Sun, 20 May 2012 21:17:39 GMT

I think cap one serves the entire credit spectrum. A lot of their problems seem to be that they profile their cards so if you started with low end card they don't really give cli according to your current credit profile. They typically want you to apply for new card as opposed to pc to other card or growing the card with you. Given they hard pull on all 3 bureaus it is ugly for the credit conscious.

Re: What is bad about Capital One?

CreditCrusader — Sun, 20 May 2012 21:18:44 GMT

@Mike360 wrote:
1. worst customer service ever
2. no customer requets on credit limit increases
3. very rare do you get offers to upgrade
4. no room for growth on sub-prime cards. one you reach the max limit of a small amount it will never change

no foreign exchange fee's,good for newcomers and low apr are some of the plus stuff but all of those have never applied to me since i never travel out of country and i don't carry balances.

1. Respectfully disagree...Orchard/HSBC doesn't have one "Peggy", they have hundreds

2. With all due respect, I think it's actually pretty smart for a sub-prime lender to limit the credit it offers to its customers on sub-prime products. By definition, those borrowers have either not established a good, sustained credit history or they are rebuilding because they fell off the good credit wagon at one point. If someone has progressed to the point of prime borrowing, Cap1 has those cards too. Nothing stopping you from applying for such cards

3. See #2 regarding upgrading...nothing at all stopping any of us from applying for other products they have. Sure, other providers upgrade without HPs, but Cap1 chooses a different business model...nothing wrong with that.

4. This seems more along the lines of your #2 complaint. Again, it's Cap1's business model...and it has worked for them to the tune of large profits.

This is not to say that your complaints aren't reasonable...just bringing a business perspective into this. Cap1 is OWNING a large sub-prime market while minimizing risk. That risk would be multiplied if if gave CLIs or PCs as readily as other lenders do. Remember, BOA/Citi/AMEX/Discover have a rather limited customer base compared to Cap1. Prime lenders aren't in the volume business. They do RM BEFORE approval; Cap1 does it after.

Re: What is bad about Capital One?

Anonymous — Sun, 20 May 2012 21:20:53 GMT

@Anonymous wrote:
With his income, I see no reason for a credit limit for a traditional card of more than about $5k and maybe a $2k limit for a store card. He really has no business putting more than that on a credit card at any given time.Anything above that for him would just be bragging rights, though I understand that a lot of people have a valid reason for higher limits.

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.

For example, I just took out $5000 on my Citibank card for what ended up in us buying a car (long story).

My available overall credit is something like 70k total, so the $5000 didnt even affect my credit score at all from what we're seeing.

If Id only had $10k total credit available, my guess is the 50% utilization would have had some negative impact on my score till Id paid it down some.

If youre responsible with your finances, take every dime in CL they will give you.

Just my opinion....

Re: What is bad about Capital One?

Anonymous — Sun, 20 May 2012 21:23:28 GMT

+1 mrgoat

Re: What is bad about Capital One?

AF_23 — Sun, 20 May 2012 21:48:29 GMT

@Anonymous wrote:

I really find them to be the most consistent creditor I have. Do I like my $500 limit, no I do not. However, I will say that they never care about carrying a balance or what payments I am making. I had a balance on that card for 2 years during my worst financial times. The did not increase my APR. They did not balance chase me. They didn't care if I made 1 payment per month or 10. All of my other cards took AA against me during those times. Definitely the best subprime CC lender

This i did find true.. they dont seem to care and or expect issues like this from its subprime users. If im in a pinch in the future, C1 would be the first to use for some of those reasons above