Capital One QS1 $1,000 (SL) Dissapointment

[jcc332006]

Hi guys i'm new to the forum and at this moment feel somewhat offended about Cap 1 as well but maybe someone can talk me down. I started with clean a slate 8 months ago and currently have  a discover secured card at $1000. I've managed the card for 8 months and saw my score go from Jan 12th 2021 to 550 until until now 10/2021 to 759 EXP, 728 EX, 740. Did the prequalify a week ago with Cap 1 and instantly preapproved. I decided to apply and was approved for the QS1 0% for 15 months, 0 annual fee, no foreign fee ect card.  However to my amazement the CL is only $1000 dollars. Mind you my discover card was my only account the whole 8 months but it grew my score to over 200 points. I haven't received the card yet nor has it been activated . I'm thinking about cancelling the card and just taking the hit on my CR because $1000 seems like an insult. I would have assumed the CL would have at least been $1000 more than the discover card . At least $2000 or $2500 seemed feasible, not a mealy $1000. I called Cap 1 today and they gave me the number to the applications dept. Has anyone having not activated a card called and had any sucess at getting them to reconsider their CL? I'm leaning towards cancelling it and just sticking with my $1000 (secured) discover card and a recent $500 Seedfi installmement loan that should be hitting my profile this month.. A $1000 dollars just seems so low compared to others with similiar scores getting higher starting limits. I'm puzzled by this and insulted. Is this card worth keeping? I also heard that opening a new revolving account 6 to 8 months out could harm my credit because of age I thought a new card would bump up the score a bit more since it would only be 2 card with low utilization on both. What do you guys think? 

[FinStar]

Hello @jcc332006 - welcome to the forums.

I would say disappointment would be if you had been declined altogether with 3 HPs to boot!  I'd say the approval was a win all things considered.

While the SL didn't meet your expectations, we don't know enough nor are privy to your overall credit/income/history profile to know how Capital One's algorithms determined or assigned the $1K SL. Unfortunately, calling them will not yield any reconsideration of your limit since the computer's decision cannot be manually overriden.

Will you even be using $1K periodically or maxing out the card?  What leads you to assume that Capital One would approve anything higher than your current 8-month $1K Discover [secured] card?

You mentioned you started with a clean slate. Did you have any derogatories or negative items prior to 8 months ago?

Of noteworthy, if you cancel the card, your AAoA will be impacted regardless once the new account hits your CRs. So, might as well make something out of it to build your history.

[Crowhelm]

Well, that is a tough one. Obviously, you are pretty new to credit (or are you rebuilding?) so this would be your first unsecured card. But I would call for sure. Tell them you were planning to make this your main card but at 1K that would be tough to do. Sometimes you can get results like that but many times they won't budge either. I hear CLI's are hard to get with Capital One so I don't know if it is worth keeping if they won't budge. Who are you banking with? They don't have a card you can apply for? Usually, with new or rebuilding profiles it is easier to get a card from your own financial institution with a decent CL.

[jcc332006]

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@FinStar wrote:

Hello @jcc332006 - welcome to the forums.

I would say disappointment would be if you had been declined altogether with 3 HPs to boot!  I'd say the approval was a win all things considered.

While the SL didn't meet your expectations, we don't know enough nor are privy to your overall credit/income/history profile to know how Capital One's algorithms determined or assigned the $1K SL. Unfortunately, calling them will not yield any reconsideration of your limit since the computer's decision cannot be manually overriden.

Will you even be using $1K periodically or maxing out the card?  What leads you to assume that Capital One would approve anything higher than your current 8-month $1K Discover [secured] card?

You mentioned you started with a clean slate. Did you have any derogatories or negative items prior to 8 months ago?

Of noteworthy, if you cancel the card, your AAoA will be impacted regardless once the new account hits your CRs. So, might as well make something out of it to build your history.

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Yes! It certainly feels good to be back in the game. Yes I had a clean slate as a result of not using or having for over 10 years. Before that my credit was wrecked and i literally stopped looking at my credit profile in disgust of my score it nor did I apply for anything. Out of sight out of mind mentality. Well unbeknowst to me that whole 10 years my credit profile was aging and everything was falling off. I got the nerves to pull CR 9 months ago and when I did the last collections account fell off leaving me without a score. I applied with Discover and got a $500 secured card and i"ve maintained it perfectly. Even increased the CL with another $500 deposit taking it to $1000. In all i have no negatives none! Just 1 discover card with $1000 credit limit 1 discover inquiry pull from opening account and that's it. Excellent payments and allways pay balance in full ect before statement. That's my profile. 8 months of squeeky clean credit. I havent activated the new card and have no annual fee. Couldnt I just cancel the card now and it wouldn't show up on my credit report as an account? Thats my concern as well. I dont want them to report it if I never activate it fearing if they do it will hurt my scores. 

[rostrow416]

Consider it a win.  It's hard to guage where SLs will land, but since you had an existing $1,000 limit, it's not something to be disappointed over.  Banks generally like to assign starting limits based on your other existing credit limits.  Until you start growing your existing lines, any new limits are going to be in that ballpark.  

Congrats on the approval!

[jcc332006]

Yes it would be my first unsecured. I'm with wells fargo and they have a few card but i've held back applying. Capital one kept inviting me to check my prequal in emails so I took the dive and checked and the QS1 popped up. i'm kind feeling they're going to say no. If they do then my concern would be if I say i dont want the card they would still report a closed account harming my scores. I dont wont the account to reflect any new account if I say I dont want it. I've read that if i don't owe them nothing say like an annual fee or charges they cant report anything. I have the $0 annual fee card.

[SoCalGardener]

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@jcc332006 wrote:

A $1000 dollars just seems so low compared to others with similiar scores getting higher starting limits. I'm puzzled by this and insulted.

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You're comparing apples and oranges.

Someone else with mid-700 scores may also have a 20-year established, perfect history. Maybe their scores are that low right now due to high utilization rates, or carrying balances on several cards, but their credit is mature and perfect. Yours may be perfect right now--but it's only eight months old and with only *one* card! (A secured card at that.)

Believe me, when it comes to feeling insulted by Cap1, I'm right at the head of the line. So don't mistake me for a Cap1 cheerleader!

If I were you, I'd be happy to have gotten an unsecured card this early in your rebuilding history. Yes, its CL is very low. Yes, Cap1 is notorious for not increasing CLs. Yes, your card can--and probably will--get bucketed with its low limit. But who cares?! Use it, make your payments on time, never be late and always pay more than the minimum.Sit back and watch your scores improve as Cap1 reports your card month after month.

In a year (or less...or more) you can kiss Cap1 and/or this card goodbye and open a prime card in its place. By then your scores will have improved, you'll have a longer credit history, and creditors will be more likely to offer you higher starting limits and better overall terms. I know it can be hard, but patience truly is a virtue in this situation. Credit is not something that happens overnight, it takes time and energy--and patience.

[jcc332006]

I get it. Thanks for the pointers. I feel i'm on the right track.  Maybe I should reconsider cancelling it. If i leave it open do you think score will take a hit when new account reports because of fairly new credit (8 months)? I surely would hope it wouldnt. I'm at EXP 750 TRANS 728, EQU 722. 

[SUPERSQUID]

With 8 months credit history 1k is a giant sl with cap 1.

[jcc332006]

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@SUPERSQUID wrote:

With 8 months credit history 1k is a giant sl with cap 1.

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Ha I was looking at my EXP 769 score thinking I deserve more, but I guess at only 8 months beggers can't be choosy. lol! I may keep it but scared it's going to ding me for a new account.