topic Re: Why the dislike of Capital One? in Credit Cards

Why the dislike of Capital One?

Anonymous — Wed, 08 Jan 2014 14:38:23 GMT

In the short time I've been on this board, I've noticed a general dislike for capital one cards. From what I can gather it stems from poor customer service, and them pulling three hard pulls for one application.

Are there other reasons it seems many don't like these this company?

Re: Why the dislike of Capital One?

Anonymous — Wed, 08 Jan 2014 14:42:11 GMT

I think there are also problems of them giving CLI's and allowing you to PC to a non annual fee card if you are on an annual fee card.

Re: Why the dislike of Capital One?

Walt_K — Wed, 08 Jan 2014 14:43:55 GMT

Up until recently, it was near impossible to get a CLI with one of their beginner/rebuilder cards. Now, people have some luck going through the Executive Office, but it is still a pain compared to how other lenders handle CLIs. So people would have cards for 10 years with perfect payment history and clean reports, but still be stuck with $500 limits. The cards simply would not grow.

Re: Why the dislike of Capital One?

Anonymous — Wed, 08 Jan 2014 14:55:36 GMT

@Walt_K wrote:
Up until recently, it was near impossible to get a CLI with one of their beginner/rebuilder cards. Now, people have some luck going through the Executive Office, but it is still a pain compared to how other lenders handle CLIs. So people would have cards for 10 years with perfect payment history and clean reports, but still be stuck with $500 limits. The cards simply would not grow.

That is why my wife and I cancelled our capone cards. She had a $1200 limit, and my card was $500. They refused to increase our limits. So we cancelled the cards.

Re: Why the dislike of Capital One?

Open123 — Wed, 08 Jan 2014 15:18:32 GMT

In the past, I think the main frustration stems from Cap One marketing themselves as catering to those rebuilding or with damaged credit, only to place darconian restrictions on the potential CLs of those very cards. Also, there was a time (no longer practiced), where Cap One engaged in the unscrupulous practice (all issuers are guilty of this to some measure) to capture their cardholders, i.e., not reporting CL limits accurately, paid amounts, encouraging multiple smaller limit cards with associated fees.

They're much better now. To be fair, those who didn't start with their rebuilding cards rarely have experienced the level of frustration of those who had to endure these sort of underhanded practices we've read about so frequently.

Re: Why the dislike of Capital One?

takeshi74 — Wed, 08 Jan 2014 17:28:39 GMT

@Walt_K wrote:
Up until recently, it was near impossible to get a CLI with one of their beginner/rebuilder cards.

^ This for me though it sounds like their non-rebuilder cards are different. Can't comment as their non-rebuilder cards aren't suited to me.

Re: Why the dislike of Capital One?

Pat94108 — Wed, 08 Jan 2014 17:40:47 GMT

Several reasons. I had one of their cards for a little while. For one, they're not too generous with CL, even for people with good credit. They don't have the policy of other CC companies that will give you CLI after a certain number of good payments. Their products aren't as appealing and varied as other CC companies'. Their customer service reps can be good or completely cluless. You often have to go the EO route to get something, which is annoying, so they can be hard to work with. There are better CC companies out there in my opinion.

Re: Why the dislike of Capital One?

Anonymous — Wed, 08 Jan 2014 18:07:43 GMT

Great thread. Agree with the comments. Have to say that my Cap1 with a $200 CL after my BK is what got me restarted. Unfortunately since Cap1 didn't grow with me after my FICO Scores reached 800 it was time to deep six them. I had five cards (two business cards with $10.6 CLs that I also dumped when they started reporting to the personal credit reports).

Re: Why the dislike of Capital One?

NonSufficientFunds — Wed, 08 Jan 2014 18:22:17 GMT

@Anonymous wrote:
In the short time I've been on this board, I've noticed a general dislike for capital one cards. From what I can gather it stems from poor customer service, and them pulling three hard pulls for one application.

Are there other reasons it seems many don't like these this company?

One reason for the (seemingly) disproportionate negativity directed at Capital One, is that as a result of their extremely aggressive marketing, they have established a huge customer base.

It seems that just about EVERYONE has a CapOne card, or two - and many of those cards tend to have very low credit limits, which can translate into them reporting a "high-utilization", if you carry even a small balance.

Although they do offer a couple premium card products, the vast majority of their user-base appears to be carrying the lower-end products.

Clearly, CapOne is pursuing a "quantity-over-quality" strategy, to hook as many users as possible. By offering lots of cards with low limits, they can spread their risk in offering starter cards to those with marginal credit.

Since many people who are establishing or rebuilding their credit, will continue to maintain their first credit card, regardless of the terms (just to keep their oldest active account looking good on their credit report), they will continue to service the account, even after it becomes irrelevent to their overall credit portfolio.

Capital One knows what they are doing, and their strategy is clearly working for them. One reason you will hear more complaints from their customers - may be because there are simply MORE cusomers to do the complaining, relative to the other card issuers.

Re: Why the dislike of Capital One?

Anonymous — Wed, 08 Jan 2014 18:47:55 GMT

I really like the Cap One cards and the limits I have. The main issue I experience, on the rare occassion that I need to contact them, is the front line reps. The problem seems to be that they are totally unempowered, they have to follow scripts and cannot deviate in any way. Which is annoying and means you need to contact the EO to get things done.

Now, to be fair, my business is very similar. With approx 100M customers, it is much easier to have a script-driven, no exception front-line staff. That way you can enforce policies, prevent employees being swayed by hard-luck stories (genuine or otherwise) and get them off the phone quicker. Yes, you lose some, but there are always others!

Re: Why the dislike of Capital One?

negg — Wed, 08 Jan 2014 20:15:54 GMT

For one there front line CSR are worthless, my dog could provide better service. Like others have said, takes an act of gód to get a decent CLI from them.

Look at my sig, it's the lowest card I have it's been 7 months, I hit the love button last week, declined on a $500 increase. Smh.

Re: Why the dislike of Capital One?

lithium78 — Wed, 08 Jan 2014 20:38:42 GMT

I just got a $500 CLI after four years without a CLI. Um, thanks I guess. At least they finally added 1.5% cash rewards to my Platinum card even though they declined a PC to Quicksilver.

Re: Why the dislike of Capital One?

-Wade- — Wed, 08 Jan 2014 23:48:24 GMT

The main reason I don't have 1 is because of the triple pull !!!! Also all the bad things i heard about the CL and CS

Re: Why the dislike of Capital One?

sandman2435 — Thu, 09 Jan 2014 00:02:25 GMT

No problems here on my end with Capital one..was able to get 33k in credit with them in less then a year..If you have great credit then from what I see they will work with you.

Re: Why the dislike of Capital One?

DavidZeng — Thu, 09 Jan 2014 00:08:21 GMT

IMO, the Cap one does not like me at all. Back to 2 months ago, when I don't have any cards, I applied for their entry level or subprime card, and they just asked my TAX return( holy God , I am a new immigrant, how could I give them that thing?) I applied Freedom and Discover on the same day, although Chase only gave me 600 CL, discover 500 CL, but at least they gave me a chance and I am really appreciated. Now I think I will never touch Cap one in my entire life.

Re: Why the dislike of Capital One?

Anonymous — Thu, 09 Jan 2014 00:14:59 GMT

That's very interesting that some were not able to get credit limit increases. My credit history started two years ago when I took out a share secured loan with my credit union (no credit history, was a ghost - could not get a CC for the life of me). I paid that off, and got an offer for Capital One's platinum card in the mail. I signed up for it, and was approved for the $500 limit. Keep in mind, I was just a lowly cashier working at Wal-Mart at the time. About a year and a half later, I went through Capital One's automated system for a credit limit increase and instantly, my limit was increased to $1250 - an amount that I certainly wasn't expecting but was more than happy to get. Using that card has helped me get my score to 750.

Re: Why the dislike of Capital One?

B335is — Thu, 09 Jan 2014 00:40:06 GMT

@negg wrote:
For one there front line CSR are worthless, my dog could provide better service. Like others have said, takes an act of gód to get a decent CLI from them.

Look at my sig, it's the lowest card I have it's been 7 months, I hit the love button last week, declined on a $500 increase. Smh.

I had similar experience with their front line CSRs in the past. They commonly advocate applying for a new card when you ask about anything from APR reduction to CLI. I got the impression they had a specific script to follow and had no empowerment to deviate from it. Granted, with the type of volume they deal with, it's probably the only way to provide consistentcy. However, I think they could learn quite a bit from Chase in having a significant reconsideration department, but maybe that's what they call the EO.

Re: Why the dislike of Capital One?

lithium78 — Thu, 09 Jan 2014 01:11:16 GMT

Cap1 is really strange. I get no CLI for four years, call the EO to get them to add rewards to my Platinum card, and then they send me a prequalified offer for their GM card. I have enough credit cards as it is right now, but it's interesting.

Re: Why the dislike of Capital One?

Networth — Thu, 09 Jan 2014 02:26:16 GMT

Full forclosure I have never pesonally had a Capital One account but I always see them nickel and diming people and have always viewed them as "sub-prime".