topic Re: LOL @ Cap1 APR Reduction in Credit Cards

LOL @ Cap1 APR Reduction

Exonumist — Thu, 27 Jun 2013 04:47:08 GMT

I'm bored out of my mind so I just got on the chat with Cap1 to see about a pc to Quicksilver. Obviously that was a big no. Or rather, "I'm sorry but unfortunately there is no offer on your account currently." So I decided to ask about an APR reduction as that card is at a whopping 22.9%! To my surprise they actually said yes, but it's only for 7 months and only to 18.9% lol. I guess it makes no difference as I never carry a balance on any of my cards, but come on!

I have such mixed feelings about even keeping this card open. On one hand it's my oldest card, has no AF, and no FTF. On the other hand I had to go through the EO just to get a $2000 limit and 1% rewards. I figure if I ever want anything done with the account the only option is really the EO and that's just ridiculous to me. I understand that when I first got the card I had virtually no credit, but they really need to develop a way to identify the customers that have improved their credit.

Re: LOL @ Cap1 APR Reduction

SnackTrader — Thu, 27 Jun 2013 06:59:59 GMT

Just remember, with no AF it will almost always be in your benefit to keep it open for utilization and for that extra time reporting. If you close it 6 months from now as opposed to today, it does you no harm and will (hopefully) stay on your report 6 months longer somewhere down the line.

Contrary to what many people here believe, you are very rarely "sticking it to the man" by closing your account with a company. No one at these lenders loses any sleep when a few customers, who weren't using their card that much anyway, decides to close their card. It just frees up more money to lend to another customer who might use the card more. And it is in my opinion much easier to "stick it to the man" while being an account holder because you can waste their time and money with "customer service" requests.

Re: LOL @ Cap1 APR Reduction

Exonumist — Thu, 27 Jun 2013 07:18:14 GMT

@SnackTrader wrote:
you can waste their time and money with "customer service" requests.

Absolutely! I used to love asking them for a credit limit increase, apr reduction, and a new card design once a month! They would print a new card and send at least one letter saying I wasn't eligible. I doubt I close it, but at some point I may let it go inactive. Right now all they really get is a netflix charge once a month for $8. I wouldn't be closing it in an attempt to make them change their views or anything. I just really have no use for the card. Even for utilization that $2k makes no difference for me. I spend maybe a thousand a month on average and have $20k in available credit. I don't know it's just one of those things where I feel like there isn't any point in keeping it other then building up my aaoa more.

Re: LOL @ Cap1 APR Reduction

TiggerDat — Thu, 27 Jun 2013 09:28:37 GMT

@Default4 wrote:

I have such mixed feelings about even keeping this card open. On one hand it's my oldest card, has no AF, and no FTF. On the other hand I had to go through the EO just to get a $2000 limit and 1% rewards. I figure if I ever want anything done with the account the only option is really the EO and that's just ridiculous to me. I understand that when I first got the card I had virtually no credit, but they really need to develop a way to identify the customers that have improved their credit.

I see you too must be a Capone cardholder.

Re: LOL @ Cap1 APR Reduction

navigatethis12 — Thu, 27 Jun 2013 10:53:14 GMT

I'm always curious why people who don't carry balances are concerned about the annual percentage rate on credit cards. I know people can care about what they want, but it just doesn't make sense to me. I have multiple cards in the 20% range and I couldn't care less. If the very odd chance came up that required me to carry a balance, I would just apply for a card with an introductory period of 0%.

Re: LOL @ Cap1 APR Reduction

Exonumist — Thu, 27 Jun 2013 12:04:41 GMT

@navigatethis12 wrote:
I'm always curious why people who don't carry balances are concerned about the annual percentage rate on credit cards. I know people can care about what they want, but it just doesn't make sense to me. I have multiple cards in the 20% range and I couldn't care less. If the very odd chance came up that required me to carry a balance, I would just apply for a card with an introductory period of 0%.

My Cap1 is the only card in the 20s. Everything else ranges from 9.9% to 18%, that is if you don't consider the Paypal card... I never plan on carrying a balance and agree with you that I would probably just apply for a low APR card if I needed to. I just like to make improvements where ever I can.

Re: LOL @ Cap1 APR Reduction

SnackTrader — Thu, 27 Jun 2013 12:09:57 GMT

+1,000,000 navigate

I have said the exact same thing before. Unfortunately, for too many on this forum, and I would suppose it applies to the rest of society, carrying balances is a regular occurrence. There are dozens of posters in credit card debt, and in denial about it. There is another handful of posters not in denial about it.

I know nothing about Default's debt burden, and so I don't include the OP in this comment. In fact, for the OP it seems more like "the principle of it". But for numerous others on the forums, our suggestions to help them build their credit portfolio go to waste towards interest charges and thousands of dollars in debt.

Re: LOL @ Cap1 APR Reduction

Exonumist — Thu, 27 Jun 2013 12:28:34 GMT

@SnackTrader wrote:
+1,000,000 navigate

I have said the exact same thing before. Unfortunately, for too many on this forum, and I would suppose it applies to the rest of society, carrying balances is a regular occurrence. There are dozens of posters in credit card debt, and in denial about it. There is another handful of posters not in denial about it.

I know nothing about Default's debt burden, and so I don't include the OP in this comment. In fact, for the OP it seems more like "the principle of it". But for numerous others on the forums, our suggestions to help them build their credit portfolio go to waste towards interest charges and thousands of dollars in debt.

To make it clear I have never paid 1¢ of interest on credit cards. It really is just because I can. Credit cards for me are essentially discount cards that help my credit score lol. I have second hand experience in what credit card debt can do to people and I have absolutely no interest in going down that path. All of that being said most of the people that are on this forum either are having credit difficulties or have had issues in the past. That's what lead them here in the first place. They can be given all of the best advise in the world, but it's ultimately up to them what they are going to do with it.

Re: LOL @ Cap1 APR Reduction

Stralem — Thu, 27 Jun 2013 13:35:37 GMT

@SnackTrader wrote:
+1,000,000 navigate

I have said the exact same thing before. Unfortunately, for too many on this forum, and I would suppose it applies to the rest of society, carrying balances is a regular occurrence. There are dozens of posters in credit card debt, and in denial about it. There is another handful of posters not in denial about it.

I know nothing about Default's debt burden, and so I don't include the OP in this comment. In fact, for the OP it seems more like "the principle of it". But for numerous others on the forums, our suggestions to help them build their credit portfolio go to waste towards interest charges and thousands of dollars in debt.

Perhaps I'm speaking out of frustration a tad bit here since I just had to pay down a huge medical bill the other day using a credit card, but there are times when carrying a balance is necessary or unavoidable. I don't think casting everyone who doesn't have zeros reporting each month as debt-ridden irresponsible lost causes (well, not in those terms of course) is fair. Given the choice of having a multi-thousand dollar med bill go into collections or paying it off in chunks over time without having to worry about the due date falling between pay cycles, well... the choice was obvious. High utilization is much more easily rectified than a collections. I'm far from being alone in this situation.

But on the wider issue of advocating responsible credit usage, no argument from me. Maxing out cards to go on vacations or buying big-ticket items that you don't need is just foolish, and we all know what they say about a fool and his money. I'm fairly certain this is the group of people you had in mind when you posted, though.

Re: LOL @ Cap1 APR Reduction

Anonymous — Thu, 27 Jun 2013 14:29:43 GMT

I gave it a shot... here's my comical convo..

Welcome to our Capital One chat service! One of our Account Specialists will be right with you. This chat will be monitored and recorded.

Hi, this is Michel. Whom do I have the pleasure of chatting with today?

you:

Michel: Hi

Michel: How may I assist you today?

you: I would like an APR reduction on my account

Michel: Let me acees your account and check if there is any offer to lower your APR.

Michel: In order to access your account, please provide your name (exactly as it appears on your credit card), zip code, date of birth and last four digits of your Social Security number.

you:

Michel: Thank you. Please bear with me a moment while I review your account information.

Michel: Because there is an ongoing amount in dispute on your account, we are unable to check the offers for your account at this time. Once resolved, we will be able to complete your request.

you: What does the dispute have anything to do with lowering my APR?

Michel: It is related to that.

Michel: Once the dispute is resolved, you can contact us to check on the lower APR offer.

Michel: We will be happy to check the status once it is resolved.

you: So because I am protecting myself, the customer, and you, Capital One against fraud by alerting you of my dispute, I get punished by not being able to lower my APR? Explain to me how that makes absolutley any sense at all?

Michel: I am really sorry but we do not have the access to check that information as the policy says we will not be able to check the offers whenever a dispute is happening.

Michel: I sincerely apologize for that.

you: So the computer tells you how to treat customers? The little helpless humans are powerless against the computer? The computer runs all right?

you: Ever heard of an override? Some discretion? Some common sense?

Michel: I am really sorry but we do access the account and check the details there.

Michel: I understand the point you are maoking.

Michel: Let me check what other options I have.

Michel: I see that there is a interest charge of $24.81. If you wish I can help you with that now.

you: How are you going to help me with that?

Michel: Would you like me to waive that interest charge for you?

you: Sure

you: That would be great

Michel: Will this be helpful to you?

you: Yes

Michel: One moment please while I check that for you.

Michel: The fee on your account has been waived. The credit from this fee waiver will show up on your account within the next 1-2 billing cycles.

Michel: I am sorry that I was not able to help with lowering the apr, however I have helped you with the fee waiver.

Michel: I am sorry if you had felt any inconvenience today.

you: Is there anything else you can do for me today?

Michel: I am really sorry I only had the option to waive the fee as there was no option for lower apr now.

Michel: I hope you are completely satisfied by the chat service today?

you: Well, I want to know what other things you can do on my account to keep me happy.. since the credit limit is pennies compared to my other credit cards

Michel: May I know how would you like me to help you now?

you: I would like you to waive and reimburse the annual fee

Michel: I am really sorry but we do not have that option.

you: Don't lie to me. I've had it done for me before

Michel: I am really sorry but we do not have that option as a chat agent.

you: Then how come I've had it waived via chat previously

Michel: I am really sorry but I do not have that option.

you: Could you give me promotional points?

Michel: I am really sorry but we do not have that option as well.

you: Then can you waive my interest for the prior month as well? I feel like this card offers absolutley no rewards and no incentives whatsoever. The interst is outrageous. There's no reason why i would continue to use the card

Michel: Let me check on interest charges.

Michel: The fee on your account has been waived. The credit from this fee waiver will show up on your account within the next 1-2 billing cycles.

Michel: I have waived the previous month interest charges for you as well.

you: Thank you. I appreciate that

Michel: You're welcome.

Michel: I am sorry that I was not able to help you with all the questions.

Michel: I have done all the needful for you.

you: Ok

Michel: I appreciate that you contacted us to check on this.

Last text message receivedMichel: I was happy to help you with the waiver.

Re: LOL @ Cap1 APR Reduction

SnackTrader — Thu, 27 Jun 2013 14:36:42 GMT

Stralem,

Point well-taken, and I appreciate your comments. I think that my comments in this thread can be taken as being intolerant of ANYONE who carries a balance, but that is indeed not my feeling. The aggregate of my comments on this topic (I write about this a lot here) usually discuss that life can sneak up on us. Medical bills, home repairs, car repairs, etc. all occur from time to time and can often be handled quite responsibly with credit cards. You explained one of those situations just now.

However, my comments above discussed those who carry balances regularly. That is, those who consistently live beyond their means and use credit cards to fund that lifestyle. That does not mean everyone in debt lives in a mansion and take vacations. In fact, quite the opposite. Many people in debt in this country live very modest lives, but STILL cannot afford what they have. I have no solution for this problem, but in general I would warn anyone who comes on this forum with minimal income that they will not be able to afford many of the great consumer products available - and credit cards aren't going to change that. In fact, for these individuals, rewards credit cards might not make much of a difference at all since a certain level of spending is needed to optimize many great rewards cards.

Those who live in mansions and take international vacations and fund their lifestyle with credit cards are a completely different segment of the population. I try not to express my general thoughts on this segment of the population in a public forum.

At the end of the day your situation presents a much different problem than regular balance carrying, but your problems probably put you more at risk than other segments of the population to overextend yourself while carrying those balances and end up in a debt cycle. I'm sorry to hear about your medical bills, and I wish you luck in paying down the debt.

Re: LOL @ Cap1 APR Reduction

Anonymous — Thu, 27 Jun 2013 15:19:43 GMT

Personally, I closed my Cap1 Platinum with a $500 limit because they would never give me a CLI. And whenever I would want to use it , I couldn't because it would put me over 50% util for that card. And it had no rewards, so it was really a pointless card for me.

So even though it was my oldest card, by about 6 months, I decided that it was in my best interest to close it and replace it with a better card. I don't see the point of hanging onto cards that serve you no purpose.

Re: LOL @ Cap1 APR Reduction

Anonymous — Thu, 27 Jun 2013 15:24:51 GMT

I hate them with a passion. I really do. I would close it, but I like the tradeline. I know it will still report for 10 years.. but rather than having a 7 year old account reporting for 10 years.. in 10 years, I'd rather have a 17 year old account reporting.. you know?

Re: LOL @ Cap1 APR Reduction

bluescale — Thu, 27 Jun 2013 15:44:21 GMT

@Stralem wrote:

But on the wider issue of advocating responsible credit usage, no argument from me. Maxing out cards to go on vacations or buying big-ticket items that you don't need is just foolish, and we all know what they say about a fool and his money. I'm fairly certain this is the group of people you had in mind when you posted, though.

Hey now! I maxed out my credit card for my vacation. Of course, that's becase I wanted the cashback rewards and my card doesn't charge international transaction fees. My credit union charges 1% for international transaction, while Cap1 gives me 1.5% back. I didn't pay a cent of interest, however, since I had money sitting in the bank waiting to pay off the Cap1 every couple of days. That was my main motication for asking for a CLI from Cap1. I got tired of logging in every few days to pay off the card while I was on vacation.

Re: LOL @ Cap1 APR Reduction

Anonymous — Thu, 27 Jun 2013 16:49:57 GMT

Well regardless, in my opinion, there is a huge difference between living beyond one's means and utilizing credit for what it's for. Credit was orginally designed to purchase things you would not otherwise be able to without. It's a tool. Any tool can be abused. Credit cards are a financial tool, just like a mortgage, car loan or personal loan. How many people here bought their first house or even current house without a mortgage? In theory, if you can't purchase a house without a mortgage, you're living beyond your means, correct? Regardless, a credit card is a financial tool that people use in leu of other types of financial tools such as personal loans or installment loans. If a person rather purchase something for $20k and put it on a credit card rather than take out a loan for it, that is their perogative. So loan as they obide by the terms and conditions of that card and keep it current, what is the problem with keeping a balance? That is the business agreement between the customer and the financial institution. They could have a $100 in their bank account or $2M.. it really doesn't matter so long as they make their payments on time. Not everyone who has excellent credit pays off everyone of their cards every month, nor do people who have the ability to. If you live in the theory of not being able to charge what you can't pay for, then you shouldn't mortgage a house, purchase a car on loan or even go to school with student loans. A mortgage is nothing more than a one time use credit card, without the card. Any loan is. So long as people use it responsibly, it doesn't matter. If you could purchase something on a credit card to make your life that much better, and you keep up on your payments.. the credit card company is making money, the customer is happy, and so is the merchant.