Approved for Newcomer card, disappointed with limit.

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Approved for Newcomer card, disappointed with limit.

Postby s.jessica » Wed Jun 19, 2013 11:00 am

Well, I guess I knew better but yesterday I applied for the Capital One Newcomer card and was approved for a $500 CL. I was hoping it would be more but I guess that just doesn't happen with Crap1. Feels like a waste of 3 inquiries. The only good thing about this card is no AF.

I was going to see if I could get the Cash Rewards card but this card is 2% back on air travel and hotels with 1% back on everything else. For the $39 AF the only advantage I seen was the 50% annual bonus. Except now I'm thinking I may have had a higher CL had I tried for it.

I was really hoping to be able to cancel my secured card so I could get my money back, but with the toy limit, it looks like I'm stuck with the secured card for a bit longer. It's a partly secured Cap1 card with a $1,500 CL. I really wish there was such a way to churn cards that I never have an oldest card that way I don't have a crappy card that I have to keep.

I received my confirmation email and it said my card would arrive in 7 to 10 days. Not sure what I should do with the toy limit when the card gets here, would it really do me any good when I have higher limits? What are the chances of a higher limit if I cancel it and apply for a different card? What are the chances of getting something with a higher limit if I cancel my secured card? I really wanted something else beside Crap1 but couldn't get it.

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Postby TopperLA » Wed Jun 19, 2013 12:01 pm

This was my first card, now it's in the sock drawer. They did increase the limit to $750 after 6 months but that's it
6 months after receiving the card and never reporting a balance I had an AMEX PRG...
Capital One let's you pay as much time as you want during the months so just make sure it never reports anything and in 6 months you will be off to a much better card.

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Postby hematino » Wed Jun 19, 2013 12:33 pm

It does stink they they didn't give you a better credit limit, but look at it this way: With their Cash Rewards card (for average credit) and the $39 annual fee, you would have had to spend $2600 annually just to break even with the annual fee! Compare that to a straight 1% no annual fee card.

*For $8000 annual spending, the Cap One Cash Rewards would earn you $120 in rewards. But you'd have to pay $39 for the annual fee, making the net rewards $81. And because the 50% only comes around once a year, you wouldn't even see 40 of those dollars until the annual bonus date rolls around.

*For $8000 annual spending on a straight 1% cash back card, you'd get $80 in rewards. Period. And keep in mind that 1% isn't spectacular for rewards, a lot of cards offer bonus % in various categories. So averaged out a card like that used for all spending would net even more.

After looking at it like that, to me it just doesn't seem like a very good card unless you plan to run a lot of spending through it to make up for the loss on the annual fee and still make the card profitable over the competition. Spending less than $8000 annually will not be any better than a 1% card, and would actually earn you less.
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Postby catsartcox » Wed Jun 19, 2013 1:13 pm

Call them, Usually you can make them do what you want. Tell them that their offer is useless in your mind compared to your other options. Maybe you can ask them, since you already have history with them to switch you to another card they have, even though you just applied. Then ask them to increase the limit to match the cards you already have.

Not really sure about Capital One, but from what I have seen, if you speak to a higher level rep and try to pit their company against the others they will budge.

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Postby credit_card_fonz » Wed Jun 19, 2013 2:46 pm

Congrats on the approval! You would think they could PC your secured card to something else, but they won't, you have to cancel it and open a new account also, Crap1 isn't know for giving high limits on cards for average credit. By making you apply for new cards Crap1 does a good job of keeping your AAoA low.

Regarding your secured card, the general rule is you need to keep it for 3 to 5 years as it's your oldest card. Most people have secured cards much longer than they planned so that's why the rule on these cards is to only have a minimum required deposit to open the card. Going from say a 200 limit to a 600 limit doesn't do much for your credit, just ties up more cash. You need 2 cards with 2,000 limit each to really help your credit. You will need to keep your secured card until you get something with a higher limit.

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Postby takeshi » Wed Jun 19, 2013 3:26 pm

s.jessica wrote:What are the chances of getting something with a higher limit if I cancel my secured card?

Canceling it won't help you. You'll take a hit in utilization. The card you just applied for lowered your AAoA as well.

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Postby im_mr_awesome » Wed Jun 19, 2013 5:49 pm

Unfortunately, I've not seen one of these Newcomer cards with over $1500, and even that is pretty generous, I think. Capital One has been said to place a $3000 max limit on a lot of their sub-prime cards meant for people rebuilding credit or building it for the first time. I have a Newcomer rewards card and despite the high APR and the low limit of $750, I keep it for the AAoA boost. It doesn't have a fee and is a decent card if you don't have prime cards. Since I've added two or three prime cards to my wallet, I'll be canceling some of my crappier cards. I may hold onto this one though, and maybe when I'm around a 770, close it and app for a Venture card or something. Doesn't hurt to have a diverse portfolio!
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Postby MemberSince99 » Wed Jun 19, 2013 6:40 pm

Cap One just is not going to give you a decent limit before you could get a decent limit from other and better lenders already.

Honestly my first "decent limit" card was a Cap One in my recent history - in December of 2011 I applied online for their No Hassle Cash back and was shocked to get an instant approval with a 3k starting limit. I didn't even know they gave limits that high. Then 14 days later I applied online with my bank who had been mail bombing me for 6 to 8 months and got an instant 9k limit on their card.

So by the time Cap One will open up the purse strings, you really don't need them anymore as you can get better elsewhere.

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