I seemed to be at a dead end with Capital One as far as new cards and CLIs go so I recently closed all my Capital One cards except for a $500 CL Quicksilver that my 17 year old son is an AU on. Yesterday I checked the pre-approval and the results were a Quicksilver, Platinum, and Savor One for good credit (first ever preapproval for Savor One). The Savor One had the 29% interest rate so I passed and then I checked Menards (first time getting preapproved) and even though I just closed two WalMarts I was preapproved for another WalMart Mastercard. I didn't pull the trigger on any cards though. There was a post where someone said the interest rate the OP got was possibly due to them having a bucketed card with Capital One. So now I'm wondering if I should close that Quicksilver since I can get in with Capital One later?
I opened up a savings and checking account for my son with Capital One when he was 15 to teach him about managing money. Capital One is a decent bank and he should have a good relationship with them. For the first year when I gave him his allowance I told him he has to save a minimum of 10%. That isn't much money but he could watch his savings grow over time and he noticed it too. He even went from the spend everything now type to being a lot more cautious about what he buys and puts away 20% or more at times. When he turned 16 I made him an AU on the Quicksilver and told him whatever he spends (he's limited to $50 spend unless he asks me to go over) he has to pay and he has done very well with that. If I close the Quicksilver I can move all his accounts over to NFCU. My Platinum card doesn't offer rewards but it has a decent limit and he can begin building a relationship with them as well.
Peace
Starting Score: ~670
@sarchin, at this exact point in time, credit card interest rates are peaking across the board, especially for credit cards from banks versus credit unions; a 29% interest rate on a SavorOne card is pretty typical, regardless of your history with CapOne. In my case, I've never had a bucketed CapOne card, never burned them for a penny, and have never paid them a penny of interest as I always pay in full before the next statement cuts. Even still my Quicksilver card, which started out at about 27% is now over 31% and my relatively new SavorOne card, which started out at 25% is now nearly 29%. Even my non-CapOne cards from traditional banks have pretty high interest rates:
- Chase Sapphire Preferred: 27.24%
- TDBank TDCash: 26.74%
My one credit card from a credit union is still pretty low:
- PenFed Platinum Rewards: 17.99% (just recently bumped from its initial 16.99%)
Long story short, if you pay off your cards monthly then you won't ever pay any interest, even if the rate is really high, however, if you plan on carrying balances, you might be best served by going with a credit union.
@Horseshoez thank you. I am just now getting my credit cleaned up where I can PIF from now on...hopefully lol. I added up the interest I paid in 2022 and it came to around $4,100...way too much considering my take home pay is $2,800 a month. I figure the offered interest rate is both due to my profile since I still have a lot of high balances being reported and like you said, just how things are now. I am more curious if the tier level of Capital One cards I currently have (Quicksilver $500, Kohl's $1,000) has an effect on approvals later on. I got the cards when I started out rebuilding but no defaults or late payments with them.
@sarchin, what I have gleaned from reading the various posts in this forum is CapOne is a tad unpredictable when it comes to new card approvals and starting limits; I remember reading a post from someone a year or two ago who had a bucketed Platinum card with a $500 limit, the poster then applied for one of the higher end CapOne cards (Savor or Venture, don't remember which), and got approved for $15,000!
Oddly enough, the reverse was true in my case; I started with a Quicksilver after my Chapter 13 discharge; the starting limit was $3,000 and is now $4,800; after my bankruptcy fell off my reports early this year I applied for a SavorOne card, which I was approved for, but with a $2,000 starting limit. Color me unimpressed.
Congratulations on your rebuild, hopefully you can swing PIF from here on in and never need to be bothered about interest rates again. 
@sarchin wrote:@Horseshoez thank you. I am just now getting my credit cleaned up where I can PIF from now on...hopefully lol. I added up the interest I paid in 2022 and it came to around $4,100...way too much considering my take home pay is $2,800 a month. I figure the offered interest rate is both due to my profile since I still have a lot of high balances being reported and like you said, just how things are now. I am more curious if the tier level of Capital One cards I currently have (Quicksilver $500, Kohl's $1,000) has an effect on approvals later on. I got the cards when I started out rebuilding but no defaults or late payments with them.
No, Cap One bases the "tier" of your card on your credit profile at the time of application. Unfortunately it doesn't "unbucket" the card as your profile improves, but it does allow for a potentially better approval for a new card later down the road if you apply with a better profile.
@SUPERSQUID thanks, I had gotten a few CLI on Kohl's, including today but wasn't sure. My card started out at $300 five years ago, and a couple small increases. I was turned down a couple of weeks ago for an increase but a few minutes ago they doubled my limit from $1,000 to $2,000.
