Help with my Cap One

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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Joe from Kentucky
 
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Joined: Mon Apr 01, 2013 5:10 pm
Location: Kentucky, USA

Help with my Cap One

Postby Joe from Kentucky » Mon Apr 01, 2013 5:31 pm

Okay, here's my story.

In 2006 I got a pre-approved application from Capital One for a credit card, their Platinum Visa. It was my first credit card ever.

I had no income, at the time I was in default on around $33k in student loans. Nonetheless, Capital One pre-approved me for a $300 card out of nowhere. I had no real income, I was living at my parents place, on their dime.

I had been trying to get my student loans out default and get a job. I'd never had a credit card before.

My parents, grandparents, family friends such always told me that the secret to credit cards was to always pay them off on time, never go over the limit, never miss a payment, and use them but be responsible and you'll get credit limit increases and

Well, after that, I got several pre-approved offers. A couple of cards from HSBC which were disasters in how I was treated by them (that's a story for another thread) which I closed out. I got a card from my Credit Union and they treated me VERY well (I started with a $500 limit, and over the last 6 years it's risen to $6000 as I've been responsible with it).

The only increase on my Capital One card was from $300 to $500 after about 6 months of having the card, when my student loans were still in default and I still didn't have a job.

Eventually, I got a real job, got my student loans out of default, and got my life in order

Last week I did my annual check of my credit reports. I realized that there is no adverse information on there at all. The credit reporting of my student loans never mentions they were in default, going back all the way they report "OK".

My income has jumped from $0 to the $50k range. I've got over 6 years of spotless use of the credit card, and of other credit cards. I've paid off a car loan in that time.

However, despite everything, my Capital One card credit limit never increased.

Just now I called them, seeing if I could get a credit limit increase. I was thinking there had to be some oversight. How am I not more creditworthy now, with an actual income and a spotless credit report than I was when I was unemployed and with over $30k in defaulted loans?

Well, in their politest scripted speech, they said that they were a "conservative" lender and could not approve of the request at this time. I know it wasn't the call center guy's call, it was obviously an automated decision (My wife spent a year working at a call center for Citi, which is why she refuses to ever get a Citi credit card, and she's told me all kinds of tales from working there), so I didn't take it out on him, but I was left baffled.

The ONLY reason I don't cancel the card and get another one (out of the half-dozen or so offers I get in the mail every week) is that it's my oldest credit card and I am under the impression that the age of your oldest account is a key part of your overall credit score, so I keep that little $500 card. I don't want to open too many credit cards and hurt my credit, so I only have the two cards.

Any advice?


Robrus1
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Postby Robrus1 » Mon Apr 08, 2013 10:51 pm

Yeah, first of all Cap One is the worst when it comes to giving credit limit increases, because they don't. You say you've had your credit union card for 6 years, so even if Cap One (7 years old?) were to be cancelled, it's only going to affect your average age of accounts by 6 months which isn't worth worrying too much about (and that won't happen for a long time).

My advice, if you have your eye on something you want and could benefit from, apply for it if your credit scores look good. Stick Capital One in the sock drawer until they close it due to inactivity some day. They're good starter cards, and that's about it. I have never used the one I have, but they leave it open so, whatever. If you didn't have the credit union card, I would advise keeping Cap One, but you've had the credit union card long enough that you should still be fine if they close Cap One.
Amex Platinum
Amex BCP 21K
Amex SPG 5K
Barclaycard Arrival Plus WEMC 5K
Chase Sapphire Preferred 23.5K
Credit Union 10K
Discover IT 7.75K

pewpew
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Postby pewpew » Mon Apr 08, 2013 11:06 pm

Capital One does not increase credit lines on their student and "newcomer" cards at the borrower's request. they only raise the CL when they feel like it. your best bet is to go with another lender. if you don't spend a lot and just want a low APR, get the barclaycard ring. currently 8% APR. if you are looking for a reward card, do some searching around this forum for info.
Junk I use:
AmEx Platinum for Mercedes Benz from, 75k spending ability
AmEx Everyday 8.99% + Prime, 44k CL
Chase Ink Bold, 35k
Chase Freedom (Converted from WaMu VISA) from '07, 5.99% + Prime, 30k CL

Junk I don't use
BoA Susan G. Komen Cash Rewards (converted from World Points MC) from '07, 7.9% Fixed APR, 30k CL
Discover IT (Converted from Discover More) from '08, 5.74% + Prime, 20k CL
AmEx Clear from '07, 4.99% + Prime, 10k CL
All 3 credit scores are over 800.

Scoach
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Location: Florida, United States

Postby Scoach » Mon Apr 08, 2013 11:48 pm

I somewhat agree with Robrus1. I have an old HSBC card with a $900 limit. I use it every 6 months or so to buy something for $5-10, then pay it off the same day, and put it back in the drawer. If they don't consider me worthy of their time to upgrade, I don't consider them worthy of my time to spend money on their card.

Unlike you, removing mine would hurt my AAoA somewhat, so I just leave it alone. But in your place, I wouldn't worry about it too much. Either cancel it and move on, or just toss it in the drawer and dust if off from time to time if you think about it.
AmEx - Platinum, Gold, Bluebird
Chase - CSP, Freedom
HSBC - Orchard Bank (1999)

DavidNY
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Postby DavidNY » Tue Apr 09, 2013 9:55 am

Scoach wrote:I have an old HSBC card with a $900 limit. I use it every 6 months or so to buy something for $5-10, then pay it off the same day, and put it back in the drawer


Maybe you could PC it to something more useful?

nvtech
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Postby nvtech » Tue Apr 09, 2013 2:39 pm

pewpew wrote:Capital One does not increase credit lines on their student and "newcomer" cards at the borrower's request..


I consider capital one as the worst in customer service and the best known credit card company in approving filthy credit lines.
It was around early 2010, I just had 3 credit cards none of them without any balance and I have a min of 12k avg credit available on each of the card. With the demise of the Schwab Invest Visa 2% cashback card at around that time, decided to apply for the Capital one Cash rewards (1.5% cashback) card. To my surprise, these crude bastards gave me a credit line of $500 :rolleyes: :confused: :mad: :mad: :mad: :mad:...WTF

And now here is the most exciting part. When I call the customer service, an agent welcomes me to the capital one family with a nice smile. He talks to me in a much elated way saying we are offering you 0% interest, 0% APR for 12 months blah blah....
I reply back..saying great..but what about my stupid credit line.
Told him about my existing credit cards..and my score and why only $500. Asked him if they can increase my credit line. Waiting for 10 mins...and he comes back saying sorry.
Damm...Its in the same call..I was completely mad and just told them to shut down my account.


I will never do business with Cap one again and there are many many good cards available in the market.

Robrus1
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Postby Robrus1 » Tue Apr 09, 2013 4:36 pm

Scoach wrote:I somewhat agree with Robrus1. I have an old HSBC card with a $900 limit. I use it every 6 months or so to buy something for $5-10, then pay it off the same day, and put it back in the drawer. If they don't consider me worthy of their time to upgrade, I don't consider them worthy of my time to spend money on their card.

Unlike you, removing mine would hurt my AAoA somewhat, so I just leave it alone. But in your place, I wouldn't worry about it too much. Either cancel it and move on, or just toss it in the drawer and dust if off from time to time if you think about it.


I guess if it's worth trying to remember to put $5 or $10 bucks on it every now and then to keep it active, OP could. Personally, it'd be more trouble than it's worth to me. If it had a bigger limit and/or was significantly older than the OP's credit union card, that'd make it worth the effort.
Amex Platinum
Amex BCP 21K
Amex SPG 5K
Barclaycard Arrival Plus WEMC 5K
Chase Sapphire Preferred 23.5K
Credit Union 10K
Discover IT 7.75K

pewpew
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Postby pewpew » Tue Apr 09, 2013 9:57 pm

nvtech wrote:decided to apply for the Capital one Cash rewards (1.5% cashback) card. To my surprise, these crude bastards gave me a credit line of $500 :rolleyes: :confused: :mad: :mad: :mad: :mad:...WTF


nvtech wrote:Asked him if they can increase my credit line. Waiting for 10 mins...and he comes back saying sorry.


The Capital One Cash Rewards card comes in multiple flavors. there is a regular cash reward card that they only give to people with excellent credit, BUT there is also a "Cash Rewards for Newcomers" (blue and white in color) which they give to everyone. if you got the later (which it sounds like you did) than it shouldn't come as a surprise that they gave you such a low line and refused to increase it. it is just how that particular card works.

the other cash reward cards are all visa signature and i don't think they come with credit lines lower than $5000.

but even if it wasn't the case, sometimes lenders wont bring up your CC for reasons they alone know. for example, I had a BoA card since 2007. while my other cards had lines of 6k-15k, BoA refused to increase the limit of this card past $2500 until about a week ago. it is still my favorite card because it is 7.9% Fixed APR and it earns cash back.
Junk I use:
AmEx Platinum for Mercedes Benz from, 75k spending ability
AmEx Everyday 8.99% + Prime, 44k CL
Chase Ink Bold, 35k
Chase Freedom (Converted from WaMu VISA) from '07, 5.99% + Prime, 30k CL

Junk I don't use
BoA Susan G. Komen Cash Rewards (converted from World Points MC) from '07, 7.9% Fixed APR, 30k CL
Discover IT (Converted from Discover More) from '08, 5.74% + Prime, 20k CL
AmEx Clear from '07, 4.99% + Prime, 10k CL
All 3 credit scores are over 800.



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