Cap One - Digging myself deeper

[KBreininger05]

Here’s my scenario:

I have 2 Cap One cards, one w/ annual fee one with monthly fee. I had these cards since 2010 I believe (when I was rebuilding my credit), had $500 CL until last year when they finally bumped me to $2,000 and $2,500. Both have not the greatest APR’s. I keep getting pre-approved offers for NO annual fee, 0% intro rate, etc but when I apply I get denied because I already have too many cards with Cap One?

So I call Cap One and ask for APR reduction (can’t do it) removal of annual/monthly fee (can’t do it) – did manage to get a half credit on my annual fee returned at least…..and I can’t upgrade either card to an account with a better APR or no annual fee. I feel like I’m constantly digging myself into a hole cards are maxed because the only GOOD thing about them is ZERO balance transfer fee. SO I transfer low balances to them to keep my debt consolidated to one place, but the fees and interest rates are killing me. I’m debating cancelling my accounts and reapplying for new accounts next time I get the pre-approved offer with the 0% APR/no fee card. BUT I won’t be guaranteed my Cl’s so I could be back at $500 credit limit PLUS you can’t transfer Cap One balances to other Cap One cards AND I lose my account history.

I really have no idea what to do. I feel like I’m constantly getting nowhere. Any suggestions/tips?

[Anonymous]

It sounds like you need to start with managing your debt/spending?  Why are you needing to carry so much in balance every month? 

[warofkraid]

I would suggest start by paying off some of the balance of the cards

[KBreininger05]

That's a little hard to do when less than half of my payment even goes to my balances.

[Anonymous]

Make larger payment.

[Anonymous]

Yes, I am sure it is hard and that is because your problem here is that you are in debt and need to get out of it as soon as possible.  Or the next scenario is try to pay down as much as you can before you attempt at applying for a card that will give you 0% interest for a year or so.  Then your issue would be to NOT accumulate any more debt and continue to paying off your debt....save your money for emergency funds so you do not rely on credit cards and repeating the cycle.  Best of luck!  Many have been in your shoes.  You can do it, but it will take some sacrifice in the beginning.

[Anonymous]

Ya the first thing to do is get those balances down. Dont apply for anymore credit until you do that first step. All thats happening right now is youre racking up inquiries which is just going to make it more difficult. You need to let those cards report low balances for awhile and then check your pre-qual sites. Cap1, Discover, Chase

[warofkraid]

I once had a card back when I was more...I guess reckless....and it seemed like I would never pay it off.  It was only a $1400 limit which seems small now vs. my overall total I have these days but to my 18 year old self with no job...well, $1400 was pretty damn amazing.

It hounded me for years.  I'd pay it off a bunch but then use it again, blah blah blah.  I just wanted to pay it off and be done with it.  A friend of mine gave me some good advice that at the time didn't seem like much.  Pay the minimum plus half.  I had been essentially paying the minium...I think $40?  and over 1/2 would go to just the interest which sucked.  Well, $60 a month made it so almost 2x the amount went to the balance and while it didn't seem like it at first, it helped me knock it out a lot faster than just paying the minimum did.

I like to think going through that crap helped mature me when it comes to spending money.  If my 18 year old self had the 17k of limits I  have now....oh boy.....

[Anonymous]

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@KBreininger05 wrote:

That's a little hard to do when less than half of my payment even goes to my balances.

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Capital One allows more than 2 cards. Just no more than 2 SUBPRIME cards. How much do you owe on each card? Do you have any negatives on your bureaus?

You would have to apply for a Quicksilver card.You won't qualify for a Venture.  I don't know your financial situation,  but if you owe $2000 on a card,  if you put $250 a month on a card each month,  the balance will go down fast. A 50% balance on Capital One is ok.They like activity.

It may be an income issue that you have.

Pay them down to 40-50% and go for the Quicksilver. 

[Anonymous]

The reason why they don't approve you for other Capital One cards is not bc you have two already but because you're maxed out on the two that you have with them.