Flexible Spending Credit Card

Anonymous · ‎09-22-2016

My Capital One QuickSilver card reports the Account Type as Flexible Spending Credit Card while my others report as Credit Card. Would changing the Over-Limit Preference change how it's reported?

This is a brand new account that just started reporting. I believe it has to do with the CARD Act and lenders not being allowed to charge an over limit fee until the user has opted in to it. Since Capital One has removed over limit fees completely, this appears to allow the card to be used effectively without a limit. I've read all the docs and cardholder agreement they've sent and can't find any information about an over limit fee.

Has anyone opted out of over limit charges on Capital One and what was the effect? Thanks

Over-Limit Preference: You have never selected a preference for over-limit coverage, which means certain transactions that take you over your credit limit may still be approved.

We are no longer accepting new enrollments for this coverage. We apologize for any inconvenience.

You may, however, still choose to decline over-limit coverage by “opting out.” If you decline over-limit coverage, you may not be allowed to make charges over your credit limit, which means your card could be declined. Also, please be aware that once we process your request, you will not be able to restore the option to go over limit because we are no longer accepting new enrollments.

Do you want to decline overlimit coverage by opting out?

UncleB · ‎09-22-2016

@Anonymous wrote:
My Capital One QuickSilver card reports the Account Type as Flexible Spending Credit Card while my others report as Credit Card. Would changing the Over-Limit Preference change how it's reported?

This is a brand new account that just started reporting. I believe it has to do with the CARD Act and lenders not being allowed to charge an over limit fee until the user has opted in to it. Since Capital One has removed over limit fees completely, this appears to allow the card to be used effectively without a limit. I've read all the docs and cardholder agreement they've sent and can't find any information about an over limit fee.

Has anyone opted out of over limit charges on Capital One and what was the effect? Thanks

Over-Limit Preference: You have never selected a preference for over-limit coverage, which means certain transactions that take you over your credit limit may still be approved.
We are no longer accepting new enrollments for this coverage. We apologize for any inconvenience.
You may, however, still choose to decline over-limit coverage by “opting out.” If you decline over-limit coverage, you may not be allowed to make charges over your credit limit, which means your card could be declined. Also, please be aware that once we process your request, you will not be able to restore the option to go over limit because we are no longer accepting new enrollments.
Do you want to decline overlimit coverage by opting out?

I can't imagine changing this preference making a difference to your actual account type (or how it's reported). Keep in mind that even with 'Flexible Spending Limit' cards it's up to the bank if they will actually let you go over your limit or not - they aren't required to.

If your particular card has no over-the-limit fee I honestly don't see the value in changing this setting, especially since once you change it you can't go back.

Also note that my own Capital One QS Visa Signature also reports as a 'Flexible Spending Limit' card, but a credit line is reported to the credit bureaus as well. Because of this, if you go over your limit it would still impact your utilization (it's said this is actually the reason many banks started reporting a limit again... the old algorithms penalized people with flex-spend card that showed no limit).

Anonymous · ‎09-23-2016

If you don't want a card with a flexible spending feature, then close it and find another card to use.

I never really understood how/why people dislike such a useful feature. Your maximum balance reported reports as the credit limit, as my Chase Visa Signature I used to have reported that way, or as the previous poster said, the algorithms are different now.

If my post sounds rude, trust me, it's not meant to. Just have a hard time understanding how people can say no to such a useful feature.

Anonymous · ‎09-23-2016

As I've investigated all of the CC's I have, none of them have an "over limit fee" anymore. It's my understanding that the CARD Act outlawed those fees. If a CC company allows you to go over your limit, their only recourse is to require the overage to be included in your "minimum amount due".

NPSL cards don't report a limit at all, including those AMEX charge cards with the Pay Over Time features. Nor will they upon request.

Speaking from experience.