capital one does not grow with

Discussion in 'Credit Talk' started by dave, Sep 3, 2000.

  1. dave

    dave Well-Known Member

    I was very happy to get a Capital One secured card with a $500 limit back in '94 when my credit was poor. Over the years, I added to my security funds account to raise the limit and received a few modest unsecured increases. In 1998, Capital One offered to raise the limit three times the amount of any additional deposit up to 5K total. I took the offer even though it meant that the interest rate (which I had bargained down)would go up from 15.9 fixed to 19.8 variable. Two years later, Capital One had not granted any further CL increases. Over the six year period since the account was opened, Capital One consistently refused to unsecure the account even though during the past two years, the 5K limit was secured with only a 2K deposit and the payments were timely and far exceeded the minimum, sometimes reaching $1000-$1200 per month. I used this card alot.

    Meanwhile, the interest rate crept up to 21%.
    My credit report improved over the years and now has no blemishes. I have 35K in total credit lines, many with prime banks. I owe about 8K to these banks. Income to debt ratio is excellent. All 3 CRAs report R-1 ratings on 10 accounts, active and closed, with no history of late payment or default.

    Disgusted with Capital One's refusal to see that my circumstances had changed, I closed the account through the bank's automated system. I expected to be connected with a live human in the retention department. Thought they might be curious why I was closing the account after six years. Even though they weren't, I wrote to them and outlined my reasons at the same time expressing my appreciation that they were the first bank to extend me credit. No response.

    Capital One returned my deposit several weeks ago.

    Today I received a solicitation for a $500 credit line increase on my closed account. All I have to do is send $99 to add to my nonexistent security funds account. They suggested I could take a vacation with this extra spending power. So, I will send them $99 inimaginary money. Then I will find an imaginary airline and hotel that will accept this credit card once I glue the pieces back together and go off on a great two day vacation.

    Maybe dealing with this bank in the imaginary world will make me feel better about Capital One cuz dealing with them in the real world sure does suck.
     
  2. Doris K.

    Doris K. Well-Known Member

    RE: capital one does not grow

    Now that you've got your credit in excellent condition, and your Capital One secured account is closed, you need to move on to bigger and better things.

    I started out with a Capital One Visa Classic with a very small unsecured limit. Of course it didn't grow much. After I established my credit, as you have, I asked a Capital One rep. what I would need to do to qualify for their Platinum card. I was told that I needed to close my Classic account first. I did so, and I immediately applied for their Platinum card and was approved.

    I must say that Capital One is a totally different institution when you're working with them on a prime basis, as opposed to a sub-prime basis. They will grow with you then. When you apply for a Capital One Platinum card, they will check all three CRAs, so make sure you can deal with three inquiries on your credit reports.
     
  3. creditwork

    creditwork Well-Known Member

    RE: capital one does not grow

    I don't know much about secured credit, except for my mortgage and auto loans, but I do know about unsecured credit. I have grown my credit lines to six figures by exercising my lines and using a disciplined approach.

    Profit from the experience.

    http://www.creditsense.com
     
  4. RichGuy

    RichGuy Guest

    RE: capital one does not grow

    It looks as if Dave "exercised his credit" quite a bit, but that Capital One didn't respond. In that case, a "disciplined approach" would require closing the account and using the same high level of purchases and payments to develop another account. Discipline means realizing that if you don't get the results you want, you need to change your approach.
     
  5. lisa

    lisa Guest

    RE: capital one does not grow

    The reason you could not get a credit limit increase until recently was because up until about 2-3 mths ago, the maximum credit limit on a secured card was $5000.00. There are only a few accts in which the maximum credit limit has been increased, but some of them have.

    Another recent change has been how the credit limit increases and unsecuring requests have been handled. Up until 4-00, Capital One would check your credit history in order to approve someone for an increase or unsecuring. Now they will review your last 6 statements. If there have been no past due payments (even by 1 day, because that IS late),overlimit purchases or returned checks then you will be granted an increase or unsecuring. You can only have 1 or the other done to your account within a 6 month period.
     
  6. dave

    dave Well-Known Member

    RE: capital one does not grow

    Thank you Lisa and others for your responses.
    Despite the change of policy in April, it still seems weird that they would want me to pay $99 to secure a $500 line increase on an account with a good payment history and a 5K limit. Guess I just don't understand the thinking behind this kind of offer. Also, I didn't mention this in my first post but I have a second card with Capital One (unsecured) which I received 11/99. It comes with an attractive $59 annual fee and 20+ interest rate. The credit line has not been increased on that card either. I nearly max it out, then pay it off each month to avoid the interest. I will cancel it before the anniversary date to get maximum advantage for spending the $59.

    As Doris points out, it seems that Capital One does not have a mechanism for upgrading subprime accounts to prime ones when it would be in the best interests of the bank to keep customers in the fold who naturally feel some loyalty for getting them started on the road to good credit.
     
  7. RichGuy

    RichGuy Guest

    RE: capital one does not grow

    I'm almost identical to you in that I accepted the same Cap One offer of "up to $1000" and a $59 annual fee simply because it was preapproved. Of course, when I received my card in 10/99, the limit was $200, not $1000.

    I found out later on the Cap One web site that their normal annual fee is $29, and that I was overpaying (a) for the privilege of several direct mail offers and (b) for a preapproved offer, which the Internet offer is not.

    Anyway, the touchtone information system does have an option for requesting a limit increase. I requested one after two months and was denied, but did so again after five months and made it to $300. Then after about eight months, I noticed an automatic increase to $400. So they do grant token increases on the unsecured card, although not enough to keep me happy.

    If you have requested an increase on the unsecured card and been denied, it could be that they stereotype all secured card holders as subprime and that they looked at your secured card as they denied you the increase on your unsecured card.

    Or it could be an advanced case of "market segmentation," in which they know that a lot of people will keep the cards on the old terms, whether out of sheer habit or for lack of alternatives. They are basically insisting that you prove both your good credit and your willingness to act by cancelling the secured card. They prefer to lose a small percentage to cancellation rather than change the terms for everyone whose credit looks improved.
     
  8. Steven Z

    Steven Z Guest

    RE: capital one does not grow

    Good points!

    In a nutshell as far as yourself, Dave (the poor unforunate Len) and anybody else is concerned once your branded sub-prime by Capital One you remain there 'for life'.

    UNLESS, you find a means to force them to reconsider. And as far as I'm concerned the best way to do so is with a "premium" card. Whereupon you would directly contact a supervisor or a retention officer and lay it 'on the line' I have this "premium" card with a high limit and a low interest rate and low/no annual fee so tell me why I should stay with your company, in other words, what can your company do for me.

    This method has invaribly proven successful with most creditors (just ask Dogman).

    Now of course many may ask "how the hell am I gonna get a "premium" card with my shitty sub-prime credit". All I can say is by crook or hook and usually by fluke we see several users here a month somehow manage it. It could be your turn next.
     
  9. dave

    dave Well-Known Member

    RE: capital one does not grow

    rich guy/steven, thanks for your remarks. i have credit from MBNA and citibank with decent limits and interest rates. still, couldn't get cap. 1 to budge. i will try the automated credit line increase route just for fun so that i can get my whopping $100 increase, too! ok, hang on, i'm calling right now. ok, the automated system is telling me that accounts are reviewed once per year. Now I have a live human who tells me the system will be updating until 8 A.M. tomorrow. I will call then and let you know the verdict.
     
  10. creditwork

    creditwork Well-Known Member

    RE: capital one does not grow

    Yes, if it does not work, you must change the approach. Secure credit is really not worth it. It is your money, put it where it will work the must for you, not for them. The disciplined approach, would call for one last chance at an increase in limit or lowering of the rate, hopefully with some leverage behind it, like a couple of other lines that can be used instead.

    Deal from strength, exercise your credit.

    http://www.creditsense.com
     
  11. creditwork

    creditwork Well-Known Member

    RE: capital one does not grow

    Dave;

    Leverage will get you over the hump. I have a Capital One account with a $5,500 limit. They have offered me as much as $20,000+ to consolidate other lines in the past. They are pretty good. Give them one last chance with your MBNA and Citi cards as leverage. If they do not come around close the account. Exercise your MBNA and Citi accounts for 6 months and comeback to Capital for another round. It works.

    Deal from strength, exercise your credit.

    http://www.creditsense.com
     
  12. Saar

    Saar Banned

    RE: capital one does not grow

    "When you apply for a Capital One Platinum card, they will check all three CRAs"


    Actually, they checked all 3 CRA for me too, and mine was an application for a secured card.


    Saar
     
  13. BarryN - C

    BarryN - C Guest

    RE: capital one does not grow

    I always enjoy the aura of optimism that you evoke on this board! :)
     
  14. RichGuy

    RichGuy Guest

    Show Your Loyalty

    Show your loyalty to Capital One by closing the unsecured card next. Then wait a few months and apply for the Platinum Visa. You can do so right on this web site.

    THAT is the only kind of loyalty they reward: 0% intro rate, 9.9% fixed.
     
  15. dave

    dave Well-Known Member

    RE: Show Your Loyalty

    you read my mind, richguy <g>
     
  16. dave

    dave Well-Known Member

    RE: capital one does not grow

    and the verdict is I have to wait until the year is up to get an increase.
     
  17. Saar

    Saar Banned

    RE: Show Your Loyalty

    While RichGuy is entirely correct, stay open-minded when you talk with the Retention Rep.


    Saar
     
  18. dynamic

    dynamic Guest

    RE: capital one does not grow

    I got a Capital One (green) mastercard in 11/99. After I made my first payment, I called and requested a credit line increase and they increased it by $100. Well just today (without asking), I received and offer in the mail to upgrade me to a gold card (for $39 upgrade charge) and double my credit limit (I signed up for the offer because I am tired of carrying around that shitty marble green card). Anyway, I signed up for Cap One's online pay, and have made as many as 4 payments in one month. Don't know if it helped, but maybe it makes a difference.
     

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