@KingAdrock wrote:I think the big issue is that if Cap1 just made a few small changes, they'd change from a decent company to a great one. They gave me a card with no AF when I had no credit and no job. I'm thankful to them for that. But now that I make good money and have tens of thousands in credit limits, that rebuilder card is still just sitting there. It has the highest APR and the lowest CL of all my cards (including the Best Buy store card that I used to have) but they won't do anything with it. CL is apperantly capped off and I can't PC to anything remotely worthwhile. So it just sits in the sockdrawer and it likely will forever, only to come out once in blue moon to keep it active.
My simple issue with Cap1 is that I'd be willing to give them more business if they'd grow with me... but they just don't seem interested.
Their illogic can be frustrating. 
But for whatever reason, they've made the decision not to do this. My guess (completely out of my own fevered brain; no evidence to support this) is that they make good money off the rebuilder cards via AF's when they have them, carrying of balances-->paying interest, and naughtiness fees for late payments or going OTL.
If they find more value in targeting people with shakier credit, then that's what they're going to do. It's their business model.
Meanwhile, they still have those few tantalizing "good" cards. They keep mailing me stuff, but I'm not allowing three hards, no matter what. That's ridiculous on their part. They could hard on one, approve you, immediately do full softs on the other two, and bounce you right on out of there if they don't like what they see.
Alas, they've never asked my opinion. 
eta: btw, I'm certainly not saying that everyone with a rebuilder CapOne carries balances, goes OTL, and incurs late fees. Overall though, they're probably more likely to do so while creating new financial habits. Most of us do fall down a time or two more after resolving to change our ways.
Something I'm surprised it seems people are missing about how Cap 1 does business and why they don't change. That would be the cost of change. It's not like a company that size can change a division on a whim. It costs a small fortune to change the methodology, train the people to handle it, and then there's the inherent risk of that change, one being, going up against a competitor you've never experienced before. Cap 1 is unique in it's business model. It works because they stick too it. When people leave for better CCC with higher CLs, there are 5 customers waiting to take each ex-customers place.
No other CCC works exactly like Cap 1, and that's why they make good money. To risk that would be a bad business decision being they have their niche rather sewn up and locked in. AMEX is even trying to dip into Cap 1's customer demographic (Zync and the Hard limit auto pay option).
Proof that Cap 1 knows what it's doing as far as getting and keeping customers (long enough to make money from them) is that the majority of people on this forum have or still do have at least one of Cap 1's cards. And Cap 1's demographic is growing MUCH faster than AMEX's, Discovers OR any other prime issuers due to the economy. I'd say they're doing things right in order to maintain their market share in a niche they discovered and figured out how to cater to it. That's why I say they're a stepping stone, and they're happy to be primarily that.
If the soup sells well, don't change the recipe, you'll go broke. Everybody else is selling sandwiches, wraps and BBQs and you're the only one selling great soup, I wouldn't try to invade their market, I'd just keep selling the soup no one else seems to sell. 
@RyVision wrote:Something I'm surprised it seems people are missing about how Cap 1 does business and why they don't change. That would be the cost of change. It's not like a company that size can change a division on a whim. It costs a small fortune to change the methodology, train the people to handle it, and then there's the inherent risk of that change, one being, going up against a competitor you've never experienced before. Cap 1 is unique in it's business model. It works because they stick too it. When people leave for better CCC with higher CLs, there are 5 customers waiting to take each ex-customers place.
No other CCC works exactly like Cap 1, and that's why they make good money. To risk that would be a bad business decision being they have their niche rather sewn up and locked in. AMEX is even trying to dip into Cap 1's customer demographic (Zync and the Hard limit auto pay option).
Proof that Cap 1 knows what it's doing as far as getting and keeping customers (long enough to make money from them) is that the majority of people on this forum have or still do have at least one of Cap 1's cards. And Cap 1's demographic is growing MUCH faster than AMEX's, Discovers OR any other prime issuers due to the economy. I'd say they're doing things right in order to maintain their market share in a niche they discovered and figured out how to cater to it. That's why I say they're a stepping stone, and they're happy to be primarily that.
If the soup sells well, don't change the recipe, you'll go broke. Everybody else is selling sandwiches, wraps and BBQs and you're the only one selling great soup, I wouldn't try to invade their market, I'd just keep selling the soup no one else seems to sell.
For anyone interested in why they're doing it like they do. This is a great little article about 3 well known CCCs. Amex, Discover, and Cap 1. Cap 1 is venturing out (no pun really intended lol) and seems they're doing so carefully (can't say I blame them).
