Question for the Capital One Veterans, Secured Edition

[Anonymous]

Since C1 used to allow secured card holders to add funds to their accounts throughout the term of the account up to the max and since has changed it to until you activate the card.

Do you think there are more planned changes for how they operate their secured card division?

Do you think they will ever allow graduation?

Will they start phasing them out? I personally think they make too much money off them but I could be wrong.

I know secured cards are a niche market, but that can be said for any particular type of specialty card. I was just curious if anyone had any thoughts on why they changed the security deposit rules and speculate about any future changes to the secured products offered by C1.

[Anonymous]

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@Anonymous wrote:
Since C1 used to allow secured card holders to add funds to their accounts throughout the term of the account up to the max and since has changed it to until you activate the card.

Do you think there are more planned changes for how they operate their secured card division?

Do you think they will ever allow graduation?

Will they start phasing them out? I personally think they make too much money off them but I could be wrong.

I know secured cards are a niche market, but that can be said for any particular type of specialty card. I was just curious if anyone had any thoughts on why they changed the security deposit rules and speculate about any future changes to the secured products offered by C1.

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What would be really nice is if the allowed graduation, or, barring that, if they did more than the credit steps unsecured CLI for a secured card.  They'd have people keep them longer if they actually offered CLIs on them.  But as they stand right now, they do not ever graduate and only offer a CLI for Credit Steps if that, so without the ability to increase the deposit people outgrow them fast.

I have no idea if they're ever going to offer anything though.  I was told once that if I wanted more of a credit line I was welcome to apply for another card and that I couldn't request a CLI on a secured card, which I didn't do because I've already got 2 'average credit' lower tier cards and I'm not willing to take a triple hit without something on the pre-approval page for a higher tier card.  I'll just get my next CLI on my QS1 in December and close out my secured card before the next anniversary date in February.

[Anonymous]

Michikade, I wholeheartedly agree with you about having one or the other. It would be nice to be able to either 1. Graduate to a better unsecured option or 2. Build upon the security I have provided along with the history and allow the account to grow along with my score and level of responsibility.

I have two other cards right now that have the potential to graduate and I will probably stick with them for life because they gave me that shot. US Bank and Discover.

I'm not a huge fan of the triple inquiry system now that I'm learning more about the credit game. But it's a small price to pay for a product you want.

Thanks for your reply

[Anonymous]

Capital One probably just wants to simplify things from their end and encourage people to apply for their unsecured products, with their higher credit lines and higher potential profit, as soon as possible.  It may not graduate, but it's a great place to start for many people and I don't hesitate to recommend it at all.

The secured card was my first credit card in seven years after a financial meltdown in 2008.  It helped me get things going in the right direction when other companies turned me down.  Now I have other solid trade lines with Capital One and others, and don't really need a card stuck at $600, but I'm going to keep it open just to remind me of where I started and to not get too cocky about my improved financial situatioin. 

[Anonymous]

Agreed Sheridan and you make an excellent point. The more I think about I probably will never close this one ether. It's 1k I know I'll always have access to if I ever need it. This was more of a speculation type post wondering if they had any plans to improve upon their secured division, but I think you're right, they may just want you to use it until you can qualify for an unsecured product. Thank you for your reply.

[joltdude]

One thing iv seen mentioned regarding Cap One cards in general.. is Cap One doesnt seem to get nervous and do AA when your close to maxing out the card....(This is unsecured cards im referring to BTW)

Probably due to their APR but still.. this is good to know....

Once you get a unsecured product...  You really should "let it go".... It still will help you for 7-10 years ,,  .... This "reminder" brings down your average CL...... 

Plus it still shows up as secured.. which isnt a big deal in some scoring systems but if someone manually looks at your CR,, they are going to wonder why.... esp if you have cards that replace it...

Just let it go.. =)

-J

[Anonymous]

Lol jolt, if I have learned anything from you guys so far is that to only to use the cards for what I would spend in cash for the month and pay in full and that's what I've been doing. Though I've only had two statements so far I've put about 2k each month through my C1 card each month and had a zero balance each statement, and only let $ 11 post on the us bank card so I really hope I don't trigger an AA.

I hear differing opinions regarding keeping the C1 secured. I'll make my mind up in 12 to 18 months when I've fully recovered and my US bank and Discover card have hopefully graduated.

Thanks for your opinion. It helps to have alternative view ppints.

[joltdude]

Having money tied up in a card that wont graduate when one has the scores to graduate.... Just doesn't make sense once you have options... Its more money that can be in your pocket... or back in your emergency fund or savings.....Just something to think about after your other cards graduate...

-J

[Anonymous]

Oh I hear you and taken to heart. And actually since I opened both the C1 and US bank on the same day I would not be closing my oldest card. So okay point really taken. Thank you.

[Anonymous]

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@joltdude wrote:

One thing iv seen mentioned regarding Cap One cards in general.. is Cap One doesnt seem to get nervous and do AA when your close to maxing out the card....(This is unsecured cards im referring to BTW)

Probably due to their APR but still.. this is good to know....

Once you get a unsecured product...  You really should "let it go".... It still will help you for 7-10 years ,,  .... This "reminder" brings down your average CL...... 

Plus it still shows up as secured.. which isnt a big deal in some scoring systems but if someone manually looks at your CR,, they are going to wonder why.... esp if you have cards that replace it...

Just let it go.. =)

-J

It doesn't show up as secured on any credit report.