Master Capital One CLD Thread

[Anonymous]

Another data point here. Cap One cut my Savor from $10k to $5k. They cited lack of use as the reason. Makes sense as I have only put about $100 to $200 on the card per month.

No changes on my credit reports, so I think their reasoning in the email they sent is the whole story.

[SecretAzure]

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@Anonymous wrote:

Another data point here. Cap One cut my Savor from $10k to $5k. They cited lack of use as the reason. Makes sense as I have only put about $100 to $200 on the card per month.

No changes on my credit reports, so I think their reasoning in the email they sent is the whole story.

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This bothers me. How is that "lack of use?" I have no dog in this race, cut ties with them a couple of years ago. They frustrate me with their stupid asenine policies that even the humans who work there don't understand. You are utilizing 1-2% on a monthly basis, sure, that seems low as a percentage. But that means you clearly have the means to rack up even more, I'm sure there have been times where you make a large purchase on it that may be upwards of $800. Now you're at a $800 and possibly $1,000 adding the usual spend. That's 10% utilization. While still a good percentage, on a thin profile, it makes a difference. If you're at $5K, $1,000 is now registering as 20% utilization and makes other lenders more weary about extending credit.

I am sorry, I went off the deep end here. I hate Cap1.

/rant

[UncleB]

Yep, they got me as well... my five year old QS Visa went from $17k to $5k.

I got the same 'During a regular account review, we noticed you’ve only been using a portion of your credit limit' email message, with a snail-mail letter said to follow.

I'm not upset... while a CLD is never fun, they're right.  I have other cards that have more lucrative rewards so there's just not much reason to use that particular card these days.  My other two Capital One cards were left untouched, but the Savor MC is already at $5900 and the Quicksilver WEMC is only at $11k and currently has a promo BT balance of ~$1900, which somewhat justifies the credit line.

Additional data points... the card that was CLD was opened in 2015, and has only had minimal use the last few years.  The last charges were in June for ~$100, which were PIF.  I did use the account for a $8k purchase once, but that was a few years ago (outside of the two-year window they referenced in the email).  Also, the credit line was $5k when the card was first opened, so in a way it's come full-circle, LOL.

I don't plan to do anything with the card... there's no need to 'rage close' and it's certainly not hurting anything just staying open.  On the contrary, at some point in the future their PC policy might change and I might be able to do something 'interesting' with it.

[Anonymous]

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@SecretAzure wrote:

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This bothers me. How is that "lack of use?" I have no dog in this race, cut ties with them a couple of years ago. They frustrate me with their stupid asenine policies that even the humans who work there don't understand. You are utilizing 1-2% on a monthly basis, sure, that seems low as a percentage. But that means you clearly have the means to rack up even more, I'm sure there have been times where you make a large purchase on it that may be upwards of $800. Now you're at a $800 and possibly $1,000 adding the usual spend. That's 10% utilization. While still a good percentage, on a thin profile, it makes a difference. If you're at $5K, $1,000 is now registering as 20% utilization and makes other lenders more weary about extending credit.

I am sorry, I went off the deep end here. I hate Cap1.

/rant

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I understand what you are saying.

I'm a little upset about this, and I agree that Cap One does have some dumb policies. It doesn't sit well with me that Cap One relies almost entirely on what the computer says, rather than allowing their reps to be informed and make some decisions. I prefer businesses that place value on human interaction and discussion. However, there's not much about that I can control in this situation, so I have to make the best of it. There are reasons I only have one Cap One card, and that is because, despite the Savor card being a good offering, the rest of their cards don't appeal to me, and I also don't like their over-reliance (in my opinion) on their computers.

I also cannot say I am too shocked by their decision. When we went into this economic downturn, I figured that customers with unused portions of their limits may end up getting those portions chopped off, regardless of how good they have been as customers. While Cap One did give me that $10k as a starting limit back in 2017, I knew a company like this may evenutally decide to lower that limit as I haven't taken full advantage of it. Again, it sucks, and I don't like it. I'm just glad that I mentally prepared myself for the possibility.

The fortunate thing is that the card will still serve its intended use, and I do not need to alter my usage of the card in any way at this time. I still have my annual fee waived because I had the card prior to the revamp (I hope that remains this way). Losing $5k off my overall credit limits does not impact my utilization, so my scores shouldn't change. I'm happy I don't have large balances, and that the AZEO method works for me in both being disciplined and preventing score hits when things like this occur.

It sucks that my limit was cut in half, but in the grand scheme of my daily life, there is little to no impact (as far as I can tell).

[Physh1]

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@HeavenOhio wrote:

@Anonymousand @Physh1, do you have any other Capital One cards?

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Negative...just my Quicksilver.

[Rogue46]

I'm waiting as well for my $15k limit savor to get snipped, I hardly use it and don't plan on it except for the token charge every few months. Although it could be worse for everyone at least they didn't take the whole TL like some of the other posts I've read lately 

[Anonymous]

Capital One probably gonna come for my V1 soon. $8250 and hasn't seen a triple digit balance since at least 2018. 

SavorOne just had the last of a $2500 charge put on it a year ago paid off so that $10K limit may be okay for now. 

I don't particularly care either way though. My days of seeking high credit limits ended when I hit $100K. Shortly after that I started closing cards and I'm down to $93K now with plans to shed another $4800 in October. As long as Capital One continues to offer VCCs, they will get some degree of spend from me from time to time since I make heavy use of that feature. 

[Anonymous]

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@FieryDance wrote:

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@Anonymous wrote:

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@HeavenOhio wrote:

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@Anonymous wrote:

I got my first CLD ever. Savor went from $27,500 to $10,000.

Not a big deal if it doesn't happen, but has anyone ever been able to call and restore a CL after a CLD with Cap One?

Now I know how the rest of you who had CLDs feel.

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@Anonymous, could you describe the amount and nature of usage on that card? Previous CLDs of this type were generally triggered by an average of $100 per month or less in spending over a period of about a year.

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Total spend the last 12 months is $6,053.46, pretty evened out. Most of it is dining and entertainment. About $500-$600 of that is 1% reward spend.

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That's a very healthy level of spend; can't believe Cap One would take issue with that.  Sorry about your CLD. 

Cap One seems to have very polarized expectations of its customers, at one end granting high limits and expecting high spend and the other giving out bucketed toy limits.  

Anyway checked my SD'ed QS with $30k. Still intact, but for how long?  

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Yeah, cap 1 CLDs are going viral. Keep an eye out, I'm sure more batches of CLDs are going to be run overnight. 

[CreditCrusader]

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@Remedios wrote:

Scoring is deeply flawed when it comes to utilization, because it's not accurate without trended data. 

With that said, that's a separate issue from non use, which is behind a lot of CLDs.

I have put some large charges on cards that normally don't get used ( only on ones I'd like to keep), pay them off, repeat a few times per year.

But, if I was totally honest, I cannot justify limits on half of my cards, and I don't expect all of them to survive intact. 

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At some point, FICO scoring will catch up with this...and sooner rather than later, I think.

Here is how I see the future of UTIL per my rarely-accurate crystal ball:

UTIL in the future will be two separate categories: regular use and nominal use.

Regular use UTIL will have a deeper impact on scoring, as it reflects the use that has significant payback obligations each month.

Nominal use will have negligible impact on scoring, as it reflects barely or unused lines, and thus insignificant payback obligations.

Accordingly, some FICO scores will drop at least temporarily because folks' who carry balances will be dinged for it.

Of course, I could be wrong.

But at some point, FICO scoring will stop rewarding piling up large unused lines to mask TRUE CC usage...that or the unused lines will be torpedoed by lenders sooner than in the past, which will have the same scoring impact.

[CreditCrusader]

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@SecretAzure wrote:

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@Anonymous wrote:

Another data point here. Cap One cut my Savor from $10k to $5k. They cited lack of use as the reason. Makes sense as I have only put about $100 to $200 on the card per month.

No changes on my credit reports, so I think their reasoning in the email they sent is the whole story.

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This bothers me. How is that "lack of use?" I have no dog in this race, cut ties with them a couple of years ago. They frustrate me with their stupid asenine policies that even the humans who work there don't understand. You are utilizing 1-2% on a monthly basis, sure, that seems low as a percentage. But that means you clearly have the means to rack up even more, I'm sure there have been times where you make a large purchase on it that may be upwards of $800. Now you're at a $800 and possibly $1,000 adding the usual spend. That's 10% utilization. While still a good percentage, on a thin profile, it makes a difference. If you're at $5K, $1,000 is now registering as 20% utilization and makes other lenders more weary about extending credit.

I am sorry, I went off the deep end here. I hate Cap1.

/rant

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There is a reason Cap 1 has persisted as a successful CCC while many others have faltered or cut their exposure significantly.

They limit risk, which means unnecessarily large lines relative to a card's actual use.

Frankly, that is how CCCs should behave if we desire responsible lenders to match responsible users.