CL on Cash Rewards...

For just about anything you want to get off your chest about credit cards.
6 posts
kcarter609
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CL on Cash Rewards...

Postby kcarter609 » Sat Dec 22, 2012 7:47 pm

I just talked to my friend. He just turned 21, has had a Discover card for maybe 2 months at most with a $500 limit, no credit history before that, and he applied and got instant approval for a Capital One Cash Rewards card with a $20k limit... He logged into his online account and he's not lying. He put down an income of $55k. No asking for proof of income or anything.

How does this even happen? Capital One is a sub prime lender and doesn't grow with you... yet they give someone with no history a $20k limit...

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)


trumpet-205
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Postby trumpet-205 » Sat Dec 22, 2012 10:11 pm

Capital One do not only deal with subprime lending, they also issue cards that are for excellent credit.

Credit decision is made by computer, so blame it on the computer. :D
In My Wallet:
Citi Forward (12/2010) | Citi TY Preferred (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)

hematino
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Postby hematino » Sun Dec 23, 2012 12:18 am

That's crazy! Never even heard of a limit that high for a Cap One personal credit card. Good for your friend thats almost unheard of for that company and for his income/credit history, but still awesome. It's a shame though he picked a card with pretty crappy cash back though, 1.5% total where .5% of it only comes on the card's anniversary is pretty ho hum. Personally I'd rather have the Blue Venture if I had a CO card. Capital One is a very strange company.
Now she's eyeless.
The snakes she held once
Eat up her hands.

kcarter609
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Location: VA

Postby kcarter609 » Sun Dec 23, 2012 1:45 pm

I will never use them.

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)

silver6054
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Postby silver6054 » Sun Dec 23, 2012 2:41 pm

kcarter609 wrote:I will never use them.


Why? As trumpet says, they have prime cards as well and can be very good. I have two cards with them with $30K and $15K limits. There are better reward cards than 1.5% back, but these aren't bad for no AF, AND no FTF

hematino
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Location: Atlantic City, NJ

Postby hematino » Mon Dec 24, 2012 12:00 am

silver6054 wrote:Why? As trumpet says, they have prime cards as well and can be very good. I have two cards with them with $30K and $15K limits. There are better reward cards than 1.5% back, but these aren't bad for no AF, AND no FTF


I can't say I blame the guy. There isn't a single card Capital One offers that isn't outclassed by a card from other issuers. Literally the only thing in Cap One's favor is their absence of foreign transaction fees on their products. They have a grand total of three prime cards, the Cash Rewards (for "excellent credit"), and the two versions of the Venture card, Gold and Blue.

The Cash Rewards offers very vanilla rewards, 1% cash back on all purchases, and another .5% on total purchases once per year on the anniversary of the account opening. This is topped most plainly by the 2%-everything cards out there like the Fidelity Amex and Priceline Visa, and even a rotator like the Freedom, where people who use nothing but that card tend to average out more than 1.5% cash back on transactions when you average the 1% purchases with the rotating 5% purchases. And they don't have to wait all year to get credited with 1/3 of their total money. Alternately the Discover It/More could net similar results depending on how much the customer takes advantage of the quarterly categories, and neither has a FTF. Plus all of the aforementioned cards have wayyyy better customer service than Capital One.

The Gold version of the Venture sports no foreign transaction fee and no annual fee and offers a whopping 1.25% cash back. This is laughable for a supposedly prime card when there are rewards juggernauts like the US Bank Cash+ and Blue Cash Preferred to contend against. Even the 2%-everything cards in the above paragraph are more generous choices for generating cash back, are way easier to get approved for, and have much better customer service backing the cards.

The Blue Venture is touted like its some great travel card, but its mediocre at best. 2% rewards for a $59 annual fee? So right off the bat, unless you run a minimum of $2950 through the card annually, you're not even breaking even. Not to beat a dead horse, but you could have one of the no-AF 2%-everything cards and have an extra $59 in cash back every year as opposed to paying Crapital One for using their card. If you are a frequent traveler and want a card that has no foreign transaction fee, get a better travel rewards card instead, like the Discover Escape or PenFed Premium Travel Rewards Amex. The Discover Escape costs $60 per year, but also has no foreign transaction fee, is 2% on all purchases, covers primary auto insurance for rentals (unlike any Cap One card), has a better sign on bonus, and American customer service. The PenFed Travel Amex has NO annual fee, NO foreign transaction fee, has a great sign on bonus, way lower APR than either flavor of Venture, and offers 5 points on each dollar spent on travel. True, non-travel purchases only net 1 point per dollar, but as with the Chase Freedom vs Cap One Cash Rewards, a real traveler would have enough travel expenses to average more than 1 point per dollar spent on all transactions. And still not have to pay the $59 annual fee of this card.

Overall the Blue Venture is the best of Capital One's prime cards, in my opinion, but none of them are really great. Take away the fact that there's no foreign transaction fee, and there is literally no reason to ever have any of these cards from the start. Even with the zero FTF, there are still better more efficient cards out there, you just have to look a little harder.

PS- Don't mean to direct this at you Silver, I realize you said the card's aren't bad and there are better reward cards. I was just elaborating I guess lol.
Now she's eyeless.
The snakes she held once
Eat up her hands.



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