Capitol One CLI challenges

[QCS123]

DH has a Capitol One QS1 account (which only I use) and I am the AU on the account.  It began at $600 then they gave us a CLI up to $3,200 at 6 months.  The card is almost 2 years old.  He was denied a CLI just over 6 months ago (I don't remember why).  He applied for another Cap 1 card and got the Platinum MC with a $500 CL four months ago.  We just requested a CLI and got an instant approval for $300, which we cancelled instead of accepting.  We had a 30% UT, but did a BT to one of MY cards which he is an AU on. and it has a zero balance at the moment and a cash back credit of $105 sitting on it.  

When requesting a CLI, we said we use $3,000 on credit cards and would be using the Cap 1 $2,000 each month.  Is there a better way to answer these questions and get a higher CLI? Frankly, I don't want to use the Cap 1 much for a while, but I want to get my DH an increased CL to help his overall UT and FICO score...any advice?

[EAJuggalo]

What are his scores and what were they when he opened the QS1?  Since it's a QS1 I'm going to guess not great.  Cap One has a history of bucketing people based on what their profile looked like when approved, regardless of what their profile looks like now.  If his profile really supports a good CLI from Cap One it should also support an AMEX, Disco or Navy Fed that has the opportunity to grow much larger.

[Gonzozap]

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@EAJuggalo wrote:

What are his scores and what were they when he opened the QS1?  Since it's a QS1 I'm going to guess not great.  Cap One has a history of bucketing people based on what their profile looked like when approved, regardless of what their profile looks like now.  If his profile really supports a good CLI from Cap One it should also support an AMEX, Disco or Navy Fed that has the opportunity to grow much larger.

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I so agree with the bucketing.  I can't get anyone with Cap One.  They gave me 2 unsecured cards when I was rebuilding, but they refuse to give me credit based on where I am now.  Scores in the 740's mean nothing.  When I ask for a CLI, each time they give me the infuriating $100 increases.  As soon as my AAOA gets better, I am closing both of those accounts (which I never use) and moving on.  They have the gall to keep sending me zero % balance transfers. Really?  With a $1500 limit?

[Anonymous]

I’ve opoened a Cap One Platinum account ($500) in 2004 and had it converted to a QS1 about a year ago. I had less than stellar credit when it was opened. About 2 years later with similar credit I opened another Platinum account ($1000). Over the last 13+ years I have never been approved for a CLI so i combined the 2 accounts and just give it the bare minimum and focus on my better cards.

[Kforce]

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@QCS123 wrote:

When requesting a CLI, we said we use $3,000 on credit cards and would be using the Cap 1 $2,000 each month.  ( I don't think the amount you put as any effect on the outcome, just a field to make you think you entered the wrong answer when you get a minimal increase ).  Is there a better way to answer these questions and get a higher CLI? ( No )  Frankly, I don't want to use the Cap 1 much for a while, but I want to get my DH an increased CL to help his overall UT and FICO score...any advice? (Use it just like normal)

[Anonymous]

Capital One's niche (except the business Spark) is really the subprime borrower.  They model their revenues on riskier borrowers by making money off annual fees or interest on balances.  They really aren't interested in going after the "higher end" market of high credit scores pay in full users.  I think they've just decided to not play in that market as it requires an entirely different strategy and they are  focused on their core strength that separates them from the other players.   The risk of allowing high credit limits for a small return requires a different risk analysis -- it's just a different risk/reward strategy and I think they want to stay focused on what they do well.  C1 would rather take controlled high risk (smaller credit limits for high risk borrowers) and much higher profit margins.   They have mastered this market and know how to model it out.  A bank like Amex would rather take less risk on the borrower, but more on the credit amounts.  Interesting to see the different strategies.

C1 strategy = take risk on large pool of riskier borrowers, but limit exposure on each borrower to small amount.  More eggs earning money spreads the risk out.  If you know both your default rate and average margin per borrower are both high , it's better to spread the risk out to avoid statistical anomallies.  

Prime banks = take less risk on the borrower profile, but more risk on the exposure side (higher limits).  This in some ways can be a riskier strategy because you are making smaller profit margins but have significantly more credit exposure.  Less defaults but each one is potentially a much higher cost.

Then again, the American market is lucrative in either market as they like to go in debt regardless of credit profile.

The funny thing is the C1 strategy in a sense is more conservative.  

[Anonymous]

Definitely a challenge to get a high credit limit with cap1...I have one 12 years only at 4K made 6k when I combo my other long time card and closed it smh! Now have a new Qs if that doesn’t move much by next year I will combo and close also I only need one headache 🙄

[BrokenBones]

The Capital One app CLI request is different from the website. It still uses the older style request where you just enter income, occupation, and montly mortgage/rent. 

[UncleB]

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@BrokenBones wrote:

The Capital One app CLI request is different from the website. It still uses the older style request where you just enter income, occupation, and montly mortgage/rent. 

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Interesting, and good to know, since my own six-months will be coming up in a few weeks.

[QCS123]

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@EAJuggalo wrote:

What are his scores and what were they when he opened the QS1?  Since it's a QS1 I'm going to guess not great.  Cap One has a history of bucketing people based on what their profile looked like when approved, regardless of what their profile looks like now.  If his profile really supports a good CLI from Cap One it should also support an AMEX, Disco or Navy Fed that has the opportunity to grow much larger.

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His scores at the time were probably pretty low (I don't exactly remember), maybe 650ish? Not sure but today he's at 696 and he has two baddies and four year old lates, so it's going to take time to get his scores up. He is an AU on my Discover (10.5k), Amex (1k) and thinking about adding him to the Pen Fed (10k) too (all cards are 4 months old). In January he tried to get a few cards, but his scores were still too low so he and I are both gardening to give it time. When he has all three above 700 we thought maybe that might be a good time to try for better cards and a business card for him.