Capital One's "temporary reductions"

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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kdm31091
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Capital One's "temporary reductions"

Postby kdm31091 » Mon Dec 21, 2015 10:01 am

Is it just me, or does anyone else find temporary APR reductions to be almost more insulting than not lowering an APR at all?

Capital One's all "Sure, we'll lower your 22.99% to 18.99% for 7 months!"

The thing is - if you're going to offer a PROMOTIONAL reduction which is essentially what that is, it needs to be more "promotional" i.e. not just a bit lower, but a lot lower. Otherwise, it is basically meaningless, and kind of a slap in the face.

Capital One has their place -- starting out and getting some decent rewards in the process. But they are not really competitive as your profile improves. With Discover and Amex willing to drop my APR quite often and raise my limit, there's nothing Capital One is doing to keep me as a customer.

Disclaimer: I haven't ever paid interest on the card, nor do I intend to since it washes out rewards. It's purely just a principal thing. It seems with Capital One, similar to Chase, your only real option is to cancel and reapply later to get the lower APR. I've heard of a small number of permanent Capital One APR reductions, but they have never been impressive (i.e. weeks of EO phone tag leads to 20.99% being reduced to 19.99%).

My QS is sockdrawered and will remain so. There is just no reason to use it. I have a Double Cash plus Discover's double promo, and both Citi and Discover seem to value my business much more than Capital One. I used to really defend Capital One (and I still do in some respects; the QS is a good product) but they just aren't very customer friendly IMO. I'm not gonna go back and forth with the EO, emailing, getting a pin, calling, leaving a message and playing phone tag for weeks to get a lower APR when other companies allow me to merely call one number, check for offers and be done. Heck, with Discover and Amex there's no need to even call or use an EO or anything. Even Barclay's gave me the lowest Upromise APR right out of the gate and has already sent two bonus offers. My point is that those companies make it more clear they want you as a customer, instead of you having to fight with the EO for what you would like.

More than likely the card will eventually get closed. With other companies readily competing for business, there's no reason to keep a lender who ostensibly doesn't care about keeping my business.

Just venting :)


Vermonster
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Re: Capital One's "temporary reductions"

Postby Vermonster » Mon Dec 21, 2015 10:28 am

I've seen much better promos. Discover and Amex are known to send out a 0% or almost 0% promo which is pretty awesome. Citi seems to be pretty good about offers like that too, but generally you have to ask.

I read somewhere that Cap one isn't a subprime lender, that they just get a bad rep for their lower end cards. I think people confuse a valuable card and a high limit with a prime card. IMHO cap one will always be a less than desirable creditor because of this sort of thing.
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kdm31091
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Re: Capital One's "temporary reductions"

Postby kdm31091 » Mon Dec 21, 2015 10:38 am

Vermonster wrote:I've seen much better promos. Discover and Amex are known to send out a 0% or almost 0% promo which is pretty awesome. Citi seems to be pretty good about offers like that too, but generally you have to ask.

I read somewhere that Cap one isn't a subprime lender, that they just get a bad rep for their lower end cards. I think people confuse a valuable card and a high limit with a prime card. IMHO cap one will always be a less than desirable creditor because of this sort of thing.


I don't even see why their lower end cards deserve a bad rep really. For what they are, they're fine. No outrageous fees, no 36% APR, etc. You can certainly do worse for rebuilder cards.

But yes, the problem is that people all chased after the Venture because of the high limit and really glorified Capital One in the process. If you're just after taking the bonus and then closing the card, these issues won't impact you. It's when you actually want to keep a card long term but expect the issuer to care about your business that you run into issues. I have, until recently, put plenty of use into my QS -- if I had just had it sitting in the SD for a year I could totally understand the lack of a decent promo (or permanent reduction).

Like I said, they definitely have a place, but once you have built up a solid profile you can do better (in terms of offers/flexible issuers etc). The only really great thing with the QS is the truly cut and dry, no hassle reward program.

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CarefulBuilder14
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Re: Capital One's "temporary reductions"

Postby CarefulBuilder14 » Mon Dec 21, 2015 12:19 pm

I totally agree about a 4% reduction for 7 months being a joke.

Personally, I'd want a 0% promo to carry a balance. I can certainly see how other people might benefit from a 5%-or-lower promo.

I used to think even a modest permanent reduction (like from 22.99% to 20.99%) had value, but it really doesn't. It would probably take years of requests and good history to get to below 10%...and if you have years of good history, then getting decent BT terms on a new card wouldn't be too difficult.
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kdm31091
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Re: Capital One's "temporary reductions"

Postby kdm31091 » Mon Dec 21, 2015 12:53 pm

CarefulBuilder14 wrote:I totally agree about a 4% reduction for 7 months being a joke.

Personally, I'd want a 0% promo to carry a balance. I can certainly see how other people might benefit from a 5%-or-lower promo.

I used to think even a modest permanent reduction (like from 22.99% to 20.99%) had value, but it really doesn't. It would probably take years of requests and good history to get to below 10%...and if you have years of good history, then getting decent BT terms on a new card wouldn't be too difficult.


It takes a lot of time to get any meaningful APR reduction from most issuers. Amex is an exception, not the rule. They dropped my BCP from 17 to 10% in like, 6 months. But that's certainly not typical.

I agree with you though. The permanent reductions of 1-2% just don't mean much. More than 3-5% can mean something, especially if the issuer lowers it frequently. But going to Capital One's EO for a 1% permanent reduction that likely won't happen again would just be a waste of my time for too little gain, especially when the QS really doesn't offer me anything special.

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Re: Capital One's "temporary reductions"

Postby Tubpbs » Mon Dec 21, 2015 2:24 pm

kdm31091 wrote:
CarefulBuilder14 wrote:I totally agree about a 4% reduction for 7 months being a joke.

Personally, I'd want a 0% promo to carry a balance. I can certainly see how other people might benefit from a 5%-or-lower promo.

I used to think even a modest permanent reduction (like from 22.99% to 20.99%) had value, but it really doesn't. It would probably take years of requests and good history to get to below 10%...and if you have years of good history, then getting decent BT terms on a new card wouldn't be too difficult.


It takes a lot of time to get any meaningful APR reduction from most issuers. Amex is an exception, not the rule. They dropped my BCP from 17 to 10% in like, 6 months. But that's certainly not typical.

I agree with you though. The permanent reductions of 1-2% just don't mean much. More than 3-5% can mean something, especially if the issuer lowers it frequently. But going to Capital One's EO for a 1% permanent reduction that likely won't happen again would just be a waste of my time for too little gain, especially when the QS really doesn't offer me anything special.


Are you now liking the double cash more than the quicksilver? Patience in terms of rewards dollars pays off, but overall dealing with Citi vs. Capitol One is another big point... (Though I have gathered that people have issues with dealing with Citi - I haven't experienced them and hope I don't, but part of it I think is perspective and realism truthfully).
Amex - BCP, Platinum, Business Gold
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Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

kdm31091
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Re: Capital One's "temporary reductions"

Postby kdm31091 » Mon Dec 21, 2015 2:28 pm

I kinda go back and forth about it. I prefer capital one's reward system but overall id rather deal with citi.

takeshi
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Re: Capital One's "temporary reductions"

Postby takeshi » Tue Dec 22, 2015 10:13 am

kdm31091 wrote:Is it just me, or does anyone else find temporary APR reductions to be almost more insulting than not lowering an APR at all?

It's never just any one person on any matter but I don't find any reduction insulting. Temporary reductions aren't as useful as ongoing.

Vermonster wrote:I read somewhere that Cap one isn't a subprime lender

Prime/subprime is a matter of borrower, not lender. CO markets to both prime and subprime consumers. How desirable I find a creditor does not make it prime or subprime. I have no use for any of their products but that doesn't make them subprime. It just means that their products don't suit me,

dragon452
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Re: Capital One's "temporary reductions"

Postby dragon452 » Sat Dec 26, 2015 8:38 pm

"Is it just me, or does anyone else find temporary APR reductions to be almost more insulting than not lowering an APR at all?
Capital One's all "Sure, we'll lower your 22.99% to 18.99% for 7 months!"

Capital One has been "insulting me" for the past six years or so. After the great recession, they raised my low interest Mastercard rate by approximately 50%...nothing personal, just an "across the board raise". After I gave them hell about being an account holder in perfect standing for about nine years, and threatening to close the account, they offered me the seven month temporary APR decrease of 4%, and its been that way ever since (my account is now 14 years old, and is a Venture World Mastercard). However, i believe the minimum APR for a Venture account is around 11.9%. My account APR is never more than 11.4%, and they offer me (once a year now)...2.99% convenience checks with no fees and no spending limit (up to my actual available credit limit). The checks are as good as cash. So, I stay with them as my "third tier" card. I'm well beyond opening and closing credit card accounts just for the signup bonuses offered. Credit limits, APR's and cardholder benefits are of prime importance to me.

kdm31091
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Re: Capital One's "temporary reductions"

Postby kdm31091 » Wed Dec 30, 2015 12:07 pm

Just to add a little humorous note, I called yesterday to try one more time about the APR reduction. The standard number on the back of my card. I knew I wouldn't get anywhere.

The agent didn't disappoint. "This APR is the lowest we can give you". Then he proceeded to offer me an "upgrade" to a Venture One (1.25 miles per dollar, and no signup bonus since it would be a PC). When I questioned how that was an "upgrade" when I currently get 1.5% cash, he basically stammered and said "are you interested or not?" of course I said no. It's just humorous that they position a lesser rewards rate that's more restrictive as being an "upgrade".

I even took the recurring netflix charge off and moved it to another card. I'm not using this card anytime soon.



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