Prime rate Credit Cards

[Anonymous]

Which info?  About CapOne reporting limits in the future?  That came from a rep when I called to cancel the card after explaining all the negative benefits of having a CapOne card to him.  The fact that Cap One doesn't report limits?  Right now the only thing I have on my account is a high balance of 2500.00, the actual limit is 5000.00.  About CapOne being predatory as far as the way they do things affecting their customers to prevent other lenders from recognizing their prime customers?  All other the internet from msn to bankrate.  Cap One has been under fire lately for these practices which is one reason I beilive they are changing their reporting practices.

Do a search on MSN money for CapOne or go to any financial discussion board.  The underground name for this card is 'Crapitol One'

BTW the no limit reporting is not exclusive to C1 but the rest are uber prime cards which if you have you would have no problem getting any other card.  Not like C1 who is largely believe to give cards to all those who breathe and can keep their noses clean for 6 mos.

Message Edited by Brammy on 03-23-2007 10:59 PM

[Anonymous]

BTW watch out for household as well.  They are notorious for rate-jacking as long as you carry their less than prime card.  That was the first one I got after BK. 

I you ever get an offer from WaMu jump on it, so far I have nothing but praises for that card.  I got it soon after I closed my HHB card and within 6 mos they tripled my initial limt, in 9 mos they upgraded the card to ca 1% cash back.  They have great BT offers.  I don't think I've used the card for a purchase since I have had it expect once but as soon as I pay pff the latest BT I'm going to change its use to my business expenses since those are PIF and I won't complain about making money.

I got really angry with Household and after closing the account about a year ago, I am inundated with offers.  Just took one from their parent company HSBC great offer highest limit since BK and cash back . But with the WaMu card I have soemthing to fall back on and will not hesitate to close if it gets fishy..

[dlm0820]

I was talking about the limit reporting with CapOne.  I'll take yoru word for that.  I've done searches on CapOne and have seen all the negative comments.  As far as HHB goes, they've been pretty good with me so far.  I don't usually carry much of a balcne on the card so I'm not that worried about the int rate. 

I get WaMu offers in the mail all the time, I just never apply for them.  How good are the chances of getting their card if my TU is 642, EQ 648 EX 672 as of today?

Thanks

[antredd67]

    I was suckered into getting three Capital One credit cards back in the mid 90's.  I eventually closed two of them because of the excessive fees that they were charging me. Then Capital One offered me a Gold Card in March 2000 with a higher credit limit of $3000. Since I already had Capital One's regular mastercard with a $2000 credit limit, I waited 6 months after making timely payments on my new Gold card, and I was able to merge the two cards increasing my overall credit limit from $3000 to $5000. I was automatically upgraded to their Platnium Credit Card too.

   I called Capital one every 6 months asking them to increase my credit limit and to lower my interest rate, and I would get the same excuse, that my account was not up for review, and that I was getting the best interest rate that they were offering me.  So even after I paid off the total balance on this card and waited another 6 months, Capital One still would not give me a credit line increase.

   About 6 months latter, Capital One sends me an offer telling me that If I max out my credit card and go over the limit up to $3000, they would increase my credit limit that way.  In other words, I had to exceed the $5000 credit limit charging up to $8000 in order to get that credit line increase as long as I included the fees, and was willing to agree to the new variable interest rate on the new balance. Now I am  hoping that you see what I mean by being suckered.

  What makes me mad with Capital one is that they screw over a lot of people who have no clue about maxing out their credit card hurts their fico score and could result in them having to pay over the limit fees as well. So what I did, was transferred over about $7760 in other credit card balances  to Capital One, and once I got that new credit limit, I paid off this card because they weren't giving me a good interest rate for transferring those balances.

    As of this month, Capital One is reporting to all 3 CBs my high balance (not limit) of $7770.  I don't know if this is affecting my UTI ratios or not. But also , I did call Capital One this month to see would they round my limit to an even $10000, since my WAMU Visa just increased my credit limit from 10,500 to $12,000 without me asking for the increase.  The answer from Capital One was still no. 

   If it is true that Capital One may begin reporting their customers credit limits in September 2007, I may keep that credit card open.  If they do not report my credit limit, then I am closing them since my UTI will be offset by my credit line increases on WAMU and a couple of other cards.  Since Capital One is not my oldest card either, I should not be dinged many point, if any, since this card is not factored into my UTI anyway.

[Anonymous]

It is true that with some cards (e.g. Capital One), the easier way to a higher limit is called the "back door double" -- basically, apply for a new card, then ask them to combine the two and close one of them. (As you did.)

If you want to keep age (as FICO scores love age), obviously you'd keep the older card open, but sometimes you'll get better terms and rates if you keep the newer card. Do what makes sense for your situation -- FICO scores will recover, and if the money difference is significant enough, I'd go that route.

Also, with some lenders -- and Capital One and HSBC do seem to be among them -- it appears that your maximum features are set by the info on your report when you open that particular account.

In other words, if one is deeply subprime and opens a Cap1 account, there's only so far that account will ever grow, but they may approve a new card as the cardholder's situation improves. In general, the deep subprime cards aren't combinable.

[dlm0820]

I didn't know I would start such a debate.  That is good though.  There have been some good posts.  For now, my Cap One card is $500 so it would be easy for me to almost max it out and then pay it down.  By the time I'm able to get the higher limit cards, I hopefully would have a decent enough score so that I could get another prime card that I wouldn't have so much trouble with.  Either that, or I would go for the WaMu card that seems to be popular and hope for a good limit on that. 

Antredd, did you use to max out your card and then pay it out before the due date so that your high credit would be what your BT was for that month and your uti would have been zero for the month?

I guess I'll play it by ear and see what happens.  They say that time heals all wounds, but I'm running out of time.  My wife and I are looking to by a house by mid-next year and I need my scores up.  Stuff is scheduled to come off starting this year and for the next two years but it's just so hard to wait.

Message Edited by dlm0820 on 03-24-2007 04:50 AM

[Anonymous]

Personally It hink you have a very good chance at getting that card.  If you maintain it the way you maintain the HHB you should be golden.

As far as HHB was concerned I was very happy with the card in the beginning.  So happy in fact that it was the only card I had for three years until a mistake on my report caused me to receive a notice I would be rate jacked.  I din't have a problem with that.  The universal default terms in my T&Cs made it clear that this could happen.  HOWEVER, I immediately contacted the creditor who was apologetic and removed the reoprting error. Of course I ran to HHB with m corrected report andwas devastated when I was told that not only would they not restore the rate but that they could go up AT WILL.  Give them any excuse, even a mistake and your head is on the chopping block.

Being Brammy, I learned everything I could, filed a formal complaint with the FTC.  MY interest rate was restored.  So I kept paying on time like a good little girl got a new CLI. and  then about five months later I noticed the interestrate at the bottom of the statement.  I had been jacked again and after pulling all prior statements I realized I was being jacked slowly not all at one time a percentage point or two each month with no notification.  This time I wrote my congressman and Senators and supported the bill you are currenlty hearing so much about in the house.  Told them they could put the card wherever monkeys play.  I was so angry that I called the parent company AFTER all of this and had their corporate office go over my account and tell me WHY I was being rate jacked. No one coul find an answer.  My annual fee on the card was paid in March and they were at least nice enough to refund that since they knew I was goig to close it at that time had my rate not been restored.

I'll admit that I probably shot myself in the foot becaue it was nothing to utilize that card over fifty percent I didn't know what creditors looked for to assess risk. I guess I'm grateful to HHB for one thing. As a result of this issue, I learned everything I could about how credit works...  The results you see today

Message Edited by Brammy on 03-24-2007 08:08 AM

[dlm0820]

Long post Brammy, but a good one.  The one thing I don't like about HHB is that if you call and ask for a CLI, t hey only give you $100 at a time no matter what.  I'll get an increase about every 6 months or so when they do it on their own, but then it's only for like $250 or something.  Not much considering that I've been with them for going on 3 years now and have not missed 1 payment with them.  I also charge a lot on it since it's my only real card.  I actually just made a payment today to them for a decent amount of money.

I'll take a stab at the Wamu card when I see it again in my mailbox.  I just don't want to get dinged too many times and have the chance of my scores going down.  I'm so close to 700 and I don't want to risk anything making it go down.  All of my other baddies are aging and aren't having too much of an affect on my score....at least I don't think.

Thanks again for the posts and I'll let you know what happens.

[Anonymous]

I got the WaMu card initially with a 1000.00 limit with a TU score of 615 back in June my score thanks to all I've learned now is about 702 acording to my mortgage lender on that bureau.  They've also tripled the limit and upgraded it to cash back. I think you'll be fine.  I haven't used it for anything but BTs since they always have offers pop uo on the website, the lastest being 1.99% with a 3% fee.  I think that's why they upgraded it to encourage me to use it for purchases but will be PIF so hopefully the interchangefee will make up for interst. The one I got also stated they do not do Universal default which is great since credit reports often have mistakes.

[Anonymous]

I think you should apply for the WAMU card, if you get the invitation. I got an invitation in the mail and I have both a HSBC and Capitol One. I was instantly approved online with a $3000 credit line.

They have 0% on BT, so of course I transfered my two balances.

 As of now my credit score is at 676.