@Anonymous wrote:
So I hit the luv button and was sent a denial due to a returned payment last week of which I promptly called and inquired about not once, but twice. Was assured no negative effects by both reps as long as I corrected said payment, which I did. No late fee due to me paying the minimum when the statement cut and no return payment fee but adverse action due to that payment returning. I sent this email and attached my denial letter hoping something will come of it:
"I recently applied for a credit limit increase via the Capital One website for my platinum MasterCard. I received a denial letter (see attached) stating my denial was due to a returned payment that was made in error from the wrong account and later corrected. I was assured by two customer service representatives that the error I made would not have a negative effect on my account, including a request for a credit limit increase. I feel mislead by these two representatives after they calmed my fear of adverse action, only to see the adverse action I worried about come true. I am emailing you to make you aware of my dissatisfaction of being lied to and looking for my credit limit increase to be reconsidered disregarding the returned payment I was told wouldn’t be a factor. Thank you for your assistance in this matter."
Hi sgomez,
I'm sorry to learn about your credit limit increase denial. I'm sure it's not what you had hoped to hear.
I think you may misunderstand three things. A credit limit increase is not a guarantee. And, it is not considered adverse action to not be granted a credit limit increase.
A returned payment is also your responsibility, regardless of the reason.
Finally, no one lied to you. Once again, it's important to understand that a credit limit increase is not a guarantee.
There are several factors it may be helpful to understand, and these are listed below.
Most lenders will not give you a credit limit increase directly after a returned payment has occurred. Having a low FICO score combined with a returned payment, and a low initial limit of $500 on your card, indicates that the lender has reservations about raising the limit and would like to see a more established positive history.
FICO scores in the high 400's and low to mid 500's are often not high enough for any lender to grant a credit limit increase, irrespective of the returned payment issue.
Your signature also indicates that you have a bankruptcy which was discharged just a few months ago. This can also affect credit limit increases, and this probably is much more of a factor than one returned payment. Lenders don't always provide all of the reasons that you are denied an increase.
Capital One is also looking at the situation and seeing that your other two trade lines have a $180 credit limit and a $300 credit limit, so this also does not present a strong case for obtaining a higher credit limit.
Given all of the above factors, you're not writing this letter from a very strong position at this time.
I'd recommend to learn from this mistake and establish a 6 month positive payment history with Capital One starting at this point and with no returned payments, and they may have a different answer in six months. Work on your FICO score as well and this will help also. Good luck.
