@FinStar wrote:
@Horseshoez wrote:
@Anonymous wrote:It depends on whether or not you're paying off the balance in full monthly or if you're carrying it. Someone that runs their balance up all the way monthly but always pays it off in full is known as a Transactor. You could have a $10k limit card and spend $9k/mo for example, but as long as you're paying off that $9k right away you're exhibiting Transactor behavior and presenting little risk to your lender. This is exactly the type of customer they want because they get all of those transaction fees from the heavy use of the card, but none of the risk that you may not pay. Someone that does not pay off their card in full monthly that continues to run their balance up after paying some of it down is known as a Revolver. These individuals are much more risky. If someone is a Revolver for a length of time, lenders could consider AA such as reducing their credit limit and likely would not increase their credit limit. A Transactor on the other hand stands little chance of AA and heavy use/payment on a card often can stimulate credit line increases.
Too funny, last year I found out CapitalOne doesn't like "Transactors".
Shortly after my Chapter 13 was discharged last year I obtained a CapitalOne secured credit card with their maximum SL of $1,000; totally insufficient for my monthly spend. At the time I figured, "No problem, I'll just pay it off every week." Yeah, about that, "BIG problem".
It turns out, CapOne doesn't like that and shunts your payments through an Anti-Money Laundering (AML) protocol where they hold your 2nd through nth payment in a statement cycle for up to 12 days before releasing it to your account. In response, I simply paid the card off and closed it less than 6-weeks after I got it in the mail. I've discussed this issue here and on other sites with several folks and have a number of theories on what happened:
- Multiple payments sent to CapitalOne in a month via snail-mail/"Check in the mail" will trigger AML
- Multiple payments pushed to CapitalOne in a month via on-line banking "Bill Pay" will trigger AML
- Multiple payments sent/pushed to CapitalOne in a month within the first 3-months (or 6-months depending on the person doing the theorizing) will trigger AML
- Multiple payments pulled from one's bank via CapitalOne's AutoPay feature will NOT trigger AML
Personally, I have no idea if any of the above theories hold water; fortunately I now have enough cards with high enough limits it is no longer an issue.
IME, that's never been an issue. My CL is $160K on one card and transactor activities inclusive of multiple payments throughout a cycle or any cycle in general has never triggered any anomaly. Payments are posted through its normal process, available credit is updated immediately and bank account reflects the draw the following business day.
There are circumstances that could flag some activity that may cause certain payments to be held for a predetermined period, but this is AI doing what it was designed to do. Otherwise, if this was the case for every single transactor notion associated with Capital One, you'd be seeing hundreds of threads (or a master thread) addressing such instances. All banks have rigorous AML controls, so Capital One is no exception.
Understood, I work for a large financial institution (not in banking or credit), and our AML efforts are huge. What bugged me was when I called CapOne to complain about my payments not being posted I was told, "We're sorry, we're just trying to make sure we're actually going to get paid." I said, "Uhhh, you already got paid, my bank pushed you the money via online bill-pay, if you hadn't already gotten the money you wouldn't know about the payment sitting on hold." That's when they admitted the AML protocol had been initated. Of the five payments I made in those six weeks, three were subject to the AML hold.
@Anonymous wrote:I think that's a broad generalization. I'm a Transactor and never had a problem or have gotten the feeling that Capital One doesn't like me (my profile). I only have 1 card with them and took it from a $3k SL to $10k in a couple of years with SP CLIs. I don't ever use the card (Savor) for more than a few hundred bucks of transactions per month and that $10k limit hasn't been reduced in several years with that minimal spend relative to the limit. They also have sent me plenty of targeted offers over the years for different products, so I'd say they are fine with my Transactor profile.
How many charge/pay cycles have you done in a month? I've never had an issue with them on my Quicksilver card, but that card is only paid on once per month.
