BooM. Capital One CLD (Partner) !!!!

[Anonymous]

Well folks, here it is - the day I never thought would come.  CapOne CLD'd my partners Venture from $25,000 (account combo) to ... wait for it ... $5,000!  Yup!  Reasons cited:

* FICO Score too low (739!!!???)

* Balances too low on Capital One accoiunts (Uses it for groceries monthly, maybe $500)

* Balances too low on Non-Cap1 cards ($8900 out of about $200k)

Called EO with a PIN from someone on CB -- EO stated once a card is CLD there is nothing they can do, but one is free to apply for a higher limit card. ALSO stated that new Underwriting is reviewing ALL accounts for possible CLD's due to account CLs that were given out in error or rarely used, or for those with any issues on their bureaus.  SHOCKED. And I stand corrected, as a year ago I said this would never happen.

I've been super low key in the credit game this past year (no new apps, fairly low util, no new accts), my Cap1 is so far untouched. Then again I have a big balance now for tuition LoL. Oh well -- wish you all the best and hope Cap1 doesnt kill your line like my partner and a few others I've read!  

[Anonymous]

They're using 4.5% utilization across the board but only 2% with Cap1, seems like a reasonable CLD to me.  

Napkin calculation says that they would probably be suited better with just $45,000 total credit, and since Cap1 doesn't even account for 6% of total spending, throwing you 6% of $45,000 = $2700 limit, so $5000 seems pretty decent when looking at CLI versus utilization.

Sucks to hear, but it also makes financial sense.

[northface28]

I for one am glad this happening and fully expect it to
Happen to me and won't come here crying over spilled milk when it does. Let's face it, we all "gamed" capital one getting huge limits most of us didn't deserve. People were blatantly applying for cards for the sole purpose of combining them into other cards to create artificially high limit cards. People do what's best for them, it's only fair capital one does what's best for their business. They're changing the game and that's their right.

[kdm31091]

In my opinion no one should really find this "shocking"....Capital One was dishing out high limits on the Venture, then they began allowing combinations, allowing people to get huge limits, etc. It was only a matter of time before they cracked down. Yes, it sucks, but realistically if they are only using $500 a month out of a $25k limit, it really doesn't make sense for Capital One to allocate that kind of limit.

They shouldn't have given out such huge limits to begin with and/or should have had rules on total limits with account combos but we are now seeing the results of them correcting things.

[CreditCuriosity]

Sorry to hear..  Obviously happened to me as well.. I expect to hear alot more from others in the near future as I think the first round began saturday and will continue until they get through all the accounts with big CL's and small amounts of spend.  Should be an interesting week.  It is what it is and I got hit hard, but moved on and understand why they did what they did to me, but quite honestly I needed to shed a bit of credit IMO on myself as I was close to 300k and no way in heck I would ever use it all, just liked the big limit card, but rewards were subpar so it was one of my lowest spenders.

[Vegas4Play]

I wonder if account combination accounts, is a factor in their approach to CLD'ing. I fully understand why they are doing it,  just wonder if that is a KEY factor.

[jeffery581]

Balances to low...LOL

[Anonymous]

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@northface28 wrote:
I for one am glad this happening and fully expect it to
Happen to me and won't come here crying over spilled milk when it does. Let's face it, we all "gamed" capital one getting huge limits most of us didn't deserve. People were blatantly applying for cards for the sole purpose of combining them into other cards to create artificially high limit cards. People do what's best for them, it's only fair capital one does what's best for their business. They're changing the game and that's their right.

---

I would tend to agree. Without pointing the finger at anyone here, a $25K - $30K CL on a card does seem to be excessive for most people's needs or desires. I know, for instance, that there have been a few more-or-less facetious posts about buying a high-end car with one of those gigantic-limit cards, but that's really just silly considering you could get an auto loan at a far lower APR. I'm not sure myself that, for most ordinary purposes, anyone really needs a card with a line higher than $10K - $15K. I'd like to get my Cap 1 secured card graduated so that I can combine it with my unsecured card, but I'm not interested in raising the CL so much as I want to streamline the two accounts I have at Cap 1 into one.

[jeffery581]

RE:

I would tend to agree. Without pointing the finger at anyone here, a $25K - $30K CL on a card does seem to be excessive for most people's needs or desires. I know, for instance, that there have been a few more-or-less facetious posts about buying a high-end car with one of those gigantic-limit cards, but that's really just silly considering you could get an auto loan at a far lower APR. I'm not sure myself that, for most ordinary purposes, anyone really needs a card with a line higher than $10K - $15K. I'd like to get my Cap 1 secured card graduated so that I can combine it with my unsecured card, but I'm not interested in raising the CL so much as I want to streamline the two accounts I have at Cap 1 into one.

I agree. Who really needs a card with a $25k-$30k limit unless you are a business.

[Anonymous]

Yes, I should have specified that. Businesses need to have credit lines in the 5- and 6-figure range, since they must often make large and expensive purchases of equipment, inventory, furnishings, etc. Unless an individual person has a major home/auto-repair or medical emergency, I would think it pretty rare that most individual people would ever need to put any single purchase on their cards in the upper-four-figure range. Even if, for example, I wanted to go down to Best Buy or Costco and buy myself an absolute top-end-of-the-range gaming laptop made by, say, Asus or Acer, I wouldn't have to put down more than $3K plus tax, and that's pretty much the most expensive single purchase I could ever envision myself making.