$20k CLD from Capital One

[Anonymous]

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@HeavenOhio wrote:
It's on page one of this thread. Yes, it was reduced to 10k. I believe just about every CLD has resulted in $10k, maybe all of them.

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That definitely seems to be the case.  Those with > $10k limits definitely need to evaluate their spend, as a small spend could without question result in a CLD to $10k. 

[Dalmus]

 It will be interesting to see what happens to my Venture card in a year...  I currently have an $18K limit, but I just took a 18 month 0% BT offer for $8000 (to pay off an 11% Prosper loan from back in the day before my rebuild got established).  Obviously, I don't intend to use the card until I've paid off the BT, which I'll do in equal payments over 17 months.

 Will that be enough activity to prevent a CLD?  They made $240 on the BT fee (don't worry, I'm saving $1,400 in interest over Prosper), which is more than they made over the past year with regular use, and they just gave me a $3K CLI.

 We shall see... I'll be a guinea pig for y'all. 

[CreditCuriosity]

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@Dalmus wrote:

 It will be interesting to see what happens to my Venture card in a year...  I currently have an $18K limit, but I just took a 18 month 0% BT offer for $8000 (to pay off an 11% Prosper loan from back in the day before my rebuild got established).  Obviously, I don't intend to use the card until I've paid off the BT, which I'll do in equal payments over 17 months.

 Will that be enough activity to prevent a CLD?  They made $240 on the BT fee (don't worry, I'm saving $1,400 in interest over Prosper), which is more than they made over the past year with regular use, and they just gave me a $3K CLI.

 We shall see... I'll be a guinea pig for y'all. 

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You are fine you are making them money which is what they want

[Anonymous]

Now, i wonder what would be the next step on Cap1 side if no usage on the card continues for another year at the $10k CL.  Will they then CLD you to $5k?  

[Anonymous]

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@Anonymous wrote:

Now, i wonder what would be the next step on Cap1 side if no usage on the card continues for another year at the $10k CL.  Will they then CLD you to $5k?  

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As of now, I'm going to say that the answer to that is no.  It seems all of the data points we are getting are from people getting CLDs to $10k.  Until we start seeing CLDs to < $10k amounts posted, we can sort of infer that Capital One is fine with $10k of exposure, just that they aren't happy with more than that if you aren't using your card much. 

[kugel]

I have 3 cap1 with 10k limits how spend a month will make it for them. ? Hi

[Anonymous]

If they have $10k limits, you may be safe from CLDs as of now, as people are not reporting CLDs to below $10k yet.  How much of a spend is required to keep limits is really an unknown and many other factors may contribute to a CLD decision.

[Anonymous]

That's what i was trying to say "not yet".  CLDs top $10k could be a gesture by Cap1 telling us, "hey, you're not speding enough so we are going to CLD you."

The next move could be, "hey, again, another year went by and you're not spending anough, so now we'll CLD you to $5k."  And maybe, if we start spending enough, they will give you some of that CL back after hitting the luv button.

My Venture with $46.5k CL is waaay too much IMO.  That should be a CL for a business who actually spends up to $30k/month.  Not complaining, just saying.  Even if they CLD me to $5k, i'm ok with that.

[Anonymous]

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@Anonymous wrote:

That's what i was trying to say "not yet".  CLDs top $10k could be a gesture by Cap1 telling us, "hey, you're not speding enough so we are going to CLD you."

The next move could be, "hey, again, another year went by and you're not spending anough, so now we'll CLD you to $5k."  And maybe, if we start spending enough, they will give you some of that CL back after hitting the luv button.

My Venture with $46.5k CL is waaay too much IMO.  That should be a CL for a business who actually spends up to $30k/month.  Not complaining, just saying.  Even if they CLD me to $5k, i'm ok with that.

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Your going to be fine my friend. Just use it for BT's. I always keep a balance on mine with an 18 month 0%. And I always pay the 2% fee in full when it posts. So they get their fee and make money immediately which they love.

[Anonymous]

Happypill says, “I think the business decision for them is that they're not likely to make any money off someone who carries no balances.” I don’t agree. Sure they make more money on those balance carrying interest charges, but credit card companies definitely make money in other ways that involve transactions.

Typical Credit Card Processing Costs – “The average credit card processing cost for a retail business where cards are swiped is roughly 1.95% - 2%. The average cost for card-not-present businesses, such as online shops, is roughly 2.30% - 2.50%.” https://www.cardfellow.com/average-fees-for-credit-card-processing/

Of course the issuing bank does not get all the fees; there are basically four parties involved where the larger banks may comprise two or three of the four. There is the 1) Credit Card Association (Visa, MasterCard, American Express etc.); 2) Credit Card Issuing Banks like Citi, Chase, B of A, Wells Fargo, USAA, 1st National Bank of Podunk, etc.; 3) Credit Card Processors also known as the Acquiring Banks or messengers between the merchant and credit card association (some call them Batch Passers) and; 4) Merchant Account Providers that manage credit card processing (e.g. sales, support, etc.), usually through the help of an acquirer. In any case the bank, FCU, etc. issuing your credit card (no matter its size) gets a cut and the larger banks can get up to 75% of the total processing fee. As a result, from a business decision, I believe the companies (banks) really care if you use the card and not as much whether you maintain a balance.

Y