So just for fun I decided to try to see what Cap 1 would be give besides my bucketed 6 year Venture 1 (2 PCs) which is at 22% APR. My scores across all 3 are above 815, 2% UTI and $70 balance on a $12,500 personal loan.
Man they have become harder to accept these days with these terms lol
Ouch. For sure that PreQual screen shows Cap One totally SubPrime.
Seen some subprime lenders with no so harsh APR's.
The terms are so harsh, because they only pre-qualify you for their 3 sub-prime cards now. The APRs you are seeing for those cards are the only APRs they state they offer for them. Therefore, someone with an 800 score would receive the same terms as someone with a 600 score, so long as they both passed initial pre-qualification screening. I'm not saying that Cap1 has the most incredible cards out there, all I am saying is that you are seeing a very bias view of their 3 worst cards. Someone with the profile to support it would be approved with a better rewards structure, a SUB, and APR much more in line with a typical rewards cards, you simply no longer have the ability to view such offers from their pre-qualify tool.
Even if you didn't want to carry balance, if you're DP's are as good as stated, I would HARD PASS this offer and spend a few hours in the Approval Thread researching. I would be willing to bet, you can find 10 other FI's that would give you credit at better terms than that and as long as you're going to take the HP hit and the AAoA change, make it worthwhile.
I'v been in garden since Aug 2019 and wont be coming out for a while. The current Cap 1 card I have will be the only Cap card I ever get.