Joe from Kentucky
- Posts: 1
- Joined: Mon Apr 01, 2013 5:10 pm
- Location: Kentucky, USA
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.