Cap One limit response...

After two letters via Planetfeedback and an e-mail to Cap One
webinfo@capitalone.com, I received a phone call from a gentleman
at the Cap One Executive Offices last week.

He said that he understood my concerns and acknowledged that the "credit
reporting process isn't perfect". He said that Cap One had surveyed customers
on their preference re reporting limits and that the majority of customers responded
that they wanted their true limits "hidden" from the CRA reports. He explained that
the customers did not want to be denied new credit b/c of "too much existing
available credit", and preferred to have their limits undisclosed.

We then got into a long discussion about the (in my opinion) fallacy of "too much
available credit". I said that I know Fair Isaac and creditors like to warn people
about too much potential credit, but that to my knowledge there is no existing
adverse reason code for too much available credit (at least not with the current
model; NextGen may have that as a code now). He agreed but said that individual
issuers of card did their own internal scoring and that too much available credit was
an serious issue for them. I said that my score for too high of a percent utilizatiom
was an automatic reason code for every lender - and that reason code shoudn't
be allowed to harm me, just because *some* lenders look for too mauch available
credit.

Anyway, the gentleman said that he couldn't report my limit without reporting all
Cap One customers limits, and since Cap One wasn't going to change it's policy,
there was nothing he could do to help me wrt this specific issue. He did offer me
other account benefits to appease me, so I ended up with:

$3,000 credit limit on gold card up from $500 in February, no annual fee ever, and
12.9% APR.

So, I'm not happy, but I'll take what personal benefits I can get for now. And I think
I will purchase a fully refundable plane ticket or some other high price item and
then return it, in order to get my "high credit" close to my true limit.

Marci

 

Saar,

Thanks for the information. I have been thinking of how to time this
for a little while. A question, please. When you say...

"Do that ~5 days before your cycle ends, and when it does, refund
it to your credit card."

... are you saying that I need to wait 5 days to have the actual
charge post to the account? Also, do you suggest waiting 5
days "before your cycle ends" to reduce total interest accrued or
does it not really matter when I do it in the billing cycle as long as
I make sure the transaction posts before refunding the account?

Thanks,

Marci

 

Mom,

I agree that it is a lame excuse. I did tell him that I felt Cap One was attempting to
keep competitors away with the policy, but that the policy IMO would backfire, once
customers began to understand how credit scoring actually work. When I told him that
I had a Citi platinum and that I was planning to BT and close either Cap One or Providian,
he immediately began offering me benefits to the account.

My only regret is that I should have asked to be upgraded to the Platinum 9.9% APR. We
receive not, because we ask not, and I think I missed out. But what I have now is
acceptable for now.

Anyway, I do think that Cap One is trying to branch out of "sub-prime" land and build
it's prime customer base, and I think Cap One is very well managed. I plan to stay
with them as long as I can.

Marci