Capital One Limiting Pre-Quals

[kdm31091]

They have been tightening up underwriting on the higher tier cards for awhile now, so this move really doesn't surprise me too much.

[vic6string]

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@CreditCuriosity wrote:

They have been pounded due to various things recently thus probably going for most profitable cards through pre-qual they were at 102 stock now around 40ish a share.  Believe it had something to do with oil industry or something.  Had to do with something, but in some financial trouble and needed help if I recall an article or two i read.

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I'm a Cap One stockholder, and I can tell you that the stock prices of every financial institution have gone way down due to the current state of the economy. If unemployment goes way up, bankruptcies go way up. If that happens, credit cards don't get paid, car loans don't get paid...pretty much everything a financial institution makes money on goes away. If the economy doesn't ramp back up soon and recover quickly, you will see not just Cap One, but every bank start becoming WAY more conservative. SUB's go down (or go away), credit limits shrink, lenders get pickier, etc.

[CreditCuriosity]

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@vic6string wrote:

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@CreditCuriosity wrote:

They have been pounded due to various things recently thus probably going for most profitable cards through pre-qual they were at 102 stock now around 40ish a share.  Believe it had something to do with oil industry or something.  Had to do with something, but in some financial trouble and needed help if I recall an article or two i read.

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I'm a Cap One stockholder, and I can tell you that the stock prices of every financial institution have gone way down due to the current state of the economy. If unemployment goes way up, bankruptcies go way up. If that happens, credit cards don't get paid, car loans don't get paid...pretty much everything a financial institution makes money on goes away. If the economy doesn't ramp back up soon and recover quickly, you will see not just Cap One, but every bank start becoming WAY more conservative. SUB's go down (or go away), credit limits shrink, lenders get pickier, etc.

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I agree I hold stocks with AMEX, etc. and been getting killed, but what i was talking about in particular was the following.. Whether it is the reason why the pre-qual is limited to their sub-prime market only is what has me scratching my head as you think they would want people less likely to default, but they can charge 25.x percent interest, etc..  Anyways situation i was referring to was..  Whether reason of the pre-qual being limited or not i have no idea.. Yes defaults are going to sky rocket whether it is with CC/mortgage/cars etc...there is no way around this sad truth.

https://www.reuters.com/article/us-health-coronavirus-capitalone-cftc-ex/exclusive-capital-one-got-c...

[mrfufoppss]

Im thinking Capital One Is Going thru some Major Changes on the Cards because my Capital one Secured card can get cashback credits thru Shopping portals Cap1 offer..that option just became available on the 3rd

[Anonymous]

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@Anonymous wrote:

I guess they are tightening lending on their higher tiers, hate to see it. Definitely new though, I just took a dry run.

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^^ I just checked pre-qual with in the last 48ish hours (sheesh, saying "24-72" hours a lot here lately) and that was not there.

[Anonymous]

I saw this yesterday as well. Last week I had been pre-qualified for Venture, Savor, and Savor One. I've been checking prequals weekly now more because there's nothing better to do than me looking for any particular card. I think it's kind of silly they'll only show you those three cards since they're the easiest to get. Not a very helpful pre-qualification tool.

[Ficoproblems247]

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@Anonymous wrote:

I saw this yesterday as well. Last week I had been pre-qualified for Venture, Savor, and Savor One. I've been checking prequals weekly now more because there's nothing better to do than me looking for any particular card. I think it's kind of silly they'll only show you those three cards since they're the easiest to get. Not a very helpful pre-qualification tool.

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Silly and not very helpful for us, yes, but Cap1 is driven by algorithms derived from unfathomable amounts of big data. There is most certainly a reason for this change, likely driven by the rapidly changing economic climate we are currently in. It makes sense to "the brain," so during these uncertain times that's where they'll be looking to for predictions of what their next steps should be. If "the brain" (big data) says to only display sub-prime cards, that's how they'll proceed. 

[ecxpa]

These type cards,  the platinum and QS1 are the biggest money makers for Cap1; high interest rates no rewards, even though QS1 has rewards there's an AF.  The economy right now actually make these cards attractive to some  unfortunate individuals looking for a way to bridge things out and Cap1 knows it and will take every advantage.  Look for tightening of credit and even CLD's in this environment it things don't improve pretty quickly!

[Anonymous]

Same here, I went to the site and got the same as you did. just the 3 lower tier cards...Hmm.

Don't need one I already have 2 and a Co-brand. but it is interesting.

[KJinNC]

I noticed this last night, also. Doesn't matter to me - Cap One has no cards I want, especially not for a triple pull. I just check any publicly available SP prequals to gauge where I am, even though it doesn't mean that much. fwiw, I got no prequal matches. I never have with C1.

Not sure why they're so popular. I don't hate them, but most of their cards aren't anything special in rewards, and they triple-pull. Though I did like their app and web site last year when I had one of their secured cards for a while.

I would not assume that big companies only ever make correct decisions. This same discussion occurred about Chase 5/24 and cobrand cards, "they have mountains of data and can't possibly be wrong." But big companies with mountains of data make mistakes all the time. Coca-Cola had mountains of data when it launched New Coke, Ford had mountains of data when it launched Edsel, etc. Product launches fail, market leaders fall to #2 or #3, and companies even go out of business. Why this should be different for banks and credit cards is a mystery to me. That said, I don't think changes to prequalifications are going to make or break any issuer.