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Can you run a Business with a $500 credit limit ? - A treat by Capital One.

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Anonymous
Not applicable

Can you run a Business with a $500 credit limit ? - A treat by Capital One.

I run a small business. That has a decent turnover, its two years old, (will complete 2nd year tax in 2011) and I have paid taxes. I have been using my personal credit cards for business use, but needed a business card. Capital one have been consistently  sending me offers for a business credit card that helps build business credit with a $39 annual fee. I fell for the bait thinking I will at least get a limit that will help me make minimum business expenses which is around $2000 per month. 

 

I get approved instantly online, and then get a letter : Congratulations, you can now enjoy and consolidate all business expenses with your new business card. CREDIT LINE : $ 500.00.  - DID THEY EXPECT ME TO BUY CANDY WITH IT ?  - THAT TOO WITH A $39 ANNUAL FEE. 

 

I need advice : 

 

a. Can I return this card once it arrives ? If that is possible then what's the procedure ? Call the 1800 number and say I don't want it ? 

b. Is there a way to appeal this ridiculous decision ? Maybe with a regulatory authority ? As this is a clear predatory practice. I would not mind a refusal and a loss of 4 credit point which I can built. But this is an insult. My personal credit card at Capital one has a $2000 credit limit. .

 

Any other opinions / advice shall be appreciated. 

 

 

 

Message 1 of 6
5 REPLIES 5
Creditaddict
Legendary Contributor

Re: Can you run a Business with a $500 credit limit ? - A treat by Capital One.

Do you know your current Fico Scores?

You can't return this, you have already had 3 credit pulls and the account is now reporting to all your personal credit reports as well, I would not do business with Capital for Business cards because they do report to your personal credit.

With decent scores and a PIF card, I would turn to Business Gold from Amex.

If you want revolving options, check out PNC or USbank

Message 2 of 6
GregB
Valued Contributor

Re: Can you run a Business with a $500 credit limit ? - A treat by Capital One.

That seems like a reasonable limit for a very new business in todays credit environment. I would have expected a limit to match your personal CapOne card if the business was a few years older.

 

You have the inquiries and the new TL reporting so it would only hurt you to cancel. I suggest using it and PIF. Ask for a CLI after 6-12 months. I don't see how you have anything to lose.

Message 3 of 6
Creditaddict
Legendary Contributor

Re: Can you run a Business with a $500 credit limit ? - A treat by Capital One.


@GregB wrote:

That seems like a reasonable limit for a very new business in todays credit environment. I would have expected a limit to match your personal CapOne card if the business was a few years older.

 

You have the inquiries and the new TL reporting so it would only hurt you to cancel. I suggest using it and PIF. Ask for a CLI after 6-12 months. I don't see how you have anything to lose.


The Capital One approval has nothing to do with business, it's completely personal credit.

I also believe Cap1 currently has a freeze on customer initiated CLI, especially on the business accounts, but maybe someone can chime in on that.

Message 4 of 6
Anonymous
Not applicable

Re: Can you run a Business with a $500 credit limit ? - A treat by Capital One.

What makes this a "predatory" lending practice? That they only gave you $500? By whose definition is that predatory? Today's credit environment sucks because banks gave away money like candy and individuals and businesses abused it. I'd say getting anything is a stroke of good luck. My business is four years old and I didn't do much better. However, I like Cap 1 because both my personal and business cards come with built-in CLIs after each three months, so I get an automatic increase a couple times. With my first Cap1 personal card, they have been rather generous with CLIs as of late. Whatever they gave you would have been disclosed in the big disclosures you agreed to. Business cards are different but you still should be able to close it and not pay the fee. But Cap1 can't control the TL being taken off your credit, nor the pulls you've already had.
Message 5 of 6
Anonymous
Not applicable

Re: Can you run a Business with a $500 credit limit ? - A treat by Capital One.

My mastercard I just got has a CL of $250. Buys fuel for my vehicle. Until you build credit, personal cards.

Message 6 of 6
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