Long Holds on Capital One Secured Payments - Anyone Else?

[Anonymous]

Greetings and salutations, fellow FICO-ers. I'm attempting to be more active here on the boards; I've been lurking for months to find answers to questions and advice, but there are a few things I just can't seem to figure out. The title of this post is one of them. 

So here's the scoop: 

Applied for Capital One Secured back in July. Received the card in early August. First payment due September 23, and per the message I'm seeing on my account, the statement date will be 8/26 or 8/27. 

I've been using this card very much like a debit card since I've had it. I'll make a purchase, wait for it to post to my balance, and then pay it off - all except for $5 or $10 so that when it posts to CBs it's showing at least some utilization. It's easy for me to do things this way since I don't have to remember to use the card and then make a payment that's going to post before they report every month, if that even makes any sense. (The habit of checking for posted transactions and paying for them each morning is better for me than making a once-a-month payment.) 

So the problem with this is that Capital One puts a six-day hold on EVERY. SINGLE. PAYMENT. In fact, some of these holds were so long, I'd paid my ENTIRE balance and had no pending transactions, but still had no available credit. I had to call them and ask them to call the bank so they could apply the payments that had cleared to my available credit. 

While on the phone with the CSR, I asked why my payments were being held for so long when it clearly says on the payment screen that my available credit should be updated in 1-2 days. She told me it's because I make multiple payments each month. Honestly, this makes ZERO sense to me. A company is going to punish its cardholders because... it got its money? The CSR even went so far as to say I shouldn't pay more than once a month... lol. What do you guys think? 

Extra info: My bank account is with Simple, which is an online bank owned by BBVA Compass. I thought maybe the fact that it's an online-only bank with a lesser-known reputation could be the problem, so over the weekend, I opened an account with Old National Bank (I think this one is only in some parts of the Midwest, but I wanted to bank with a company that had nearby branches and free ATMs, so this was the best option.)

If anyone knows what's REALLY happening and what I can do to fix it, please feel free to offer some advice. The six-day holds are annoying. 

[FinStar]

This is pretty standard for some new accounts OP. Regardless whether your account is a secured product or not and whether they're eventually settling the payment beyond the hold period.

You can structure your payments to more manageable levels for several transactions instead of micromanaging each single one or continue to experience the payment holds until the account has aged beyond the initial restrictive period. Keep in mind that most individuals outside of the forums (or similar blogs) do not micromanage their accounts to these levels.

Alternatively, if you want to avoid some of the inconvenience, then push your payments from your financial institution.

[Anonymous]

Hey, Finstar. Good afternoon, and thanks for the reply! 

Well, it's not so much micromanagement to me as it is habit. Haha. I'll start doing it weekly and see if that helps, or perhaps I'll just stop using the card as much so I don't need to make as many payments.  

Push payments from financial institution? Is this the same as online bill pay?

[FinStar]

No worries, anytime.

Yes, online bill pay from your financial institution can alleviate some of the headaches if you're used to certain budgeting strategies or manage payments during any given monthly/weekly intervals.

[Anonymous]

Awesome! 

I'll try that with my next Cap1 payment and see what happens. I'm expecting it may still hold since it's a brand new account that I've just linked to my Cap1, but I did verify it with the deposits, so maybe they'll be a little more lenient. I know it's important to use the same account to pay all the time with companies like this, so like I said, I'll just have to build a "rapport", I suppose. 

I appreciate your help! 

[Brian_Earl_Spilner]

Completely normal for that amount of payments a month. Some banks hold it for as long as 10-14 days If you're making too many payments in a month. I do 2 or 3 max and my payments post in 2 days.

[Anonymous]

Thanks for the info, Brian. I'll switch to weekly payments for now, I think, and do the online billpay through my bank to see if that helps anything. If the payment holds don't go away, I'll switch to biweekly and set myself some reminders so I don't forget. 

I appreciate it! <3 

[Anonymous]

UPDATE: 

The bank I was using to make these payments was Simple Bank, which is an online-only bank account that's partnered with BBVA Compass. I recently discovered that this bank does NOT report to any of the "alternative" bureaus... at all. I was denied a loan due to having "unacceptable banking history" even though this account has been open for exactly three years, I've used it faithfully, and I've never overdrafted it. It's just like this bank doesn't even exist to creditors. 

Recently, after having improved my credit slightly, I opened a traditional checking account with Old National Bank. I made my first payment to Capital One with it yesterday since I knew my statement would cut early this morning and I wanted to bring down my util. I was terrified that I waited too long, but I scheduled the payment anyway (to post yesterday). Not only did it actually post to my balance, but it actually posted to my available credit immediately... something that never happened with any payment I ever made to Capital One. 

I started a Smorgasboard thread about online vs. traditional banks due to this. I had NO idea that online banks would cause me issues like this. (At least, I assume it's the bank.) FYI - for those of you who had credit issues like I did and are struggling to get a traditional checking account, Simple is by far the best alternative. They offer amazing tools, their online banking and app are both amazing, and their customer service is out-of-this-world. I loved them the three years I banked exclusively with them, but after learning that it doesn't count as a "traditional" checking account... well, let's just say the disappointment is real. At least Capital One seems to like Old National better.