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CAPITAL ONE Financial Smells the Smell of Subprime!!!!!!


MP80
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Capital One, the third-largest card issuer potentially trimming my credit lines in the coming month of November. Capital One banks see all that unused available credit out there as risk. I'd had survived the two purges of CLDs in the past, unfortunately, not this third time.  :(

 

On top of the heightened risk as millions of Americans face income and job losses, so they're slashing it, not just me but for millions of other people. 

I'M DISAPPOINTED IN CAPONE!!! Treating me like a king is finally over*. 

 

In addition, The move isn't going over with Capital One customers, with many voicing complaints on social media about the decision. "Long time customer, both savings, checking, and credit card," one person wrote. "Many years using my card for international travel ... Decided to reduce my line of credit by more than 1/2. GUESS LOYALTY MEANS NOTHING!"

 

Since the Pandemic devastation, the ravaged almost one-third of U.S. credit card users had had their accounts either closed or their credit limits reduced involuntarily. Now, Capital One is tightening the reins because they're fearful that more households could face financial difficulties in the coming months, i.e. I wonder just how many losses has Capital One taken since the Pandemic.

 

A Capital One letter sent to me said the company kept credit limits "significantly above" a customer's highest balance of the last year to make sure people could continue to use the card despite the cut to credit limits.

 

*Kudos to Capital One! At least they warned me!!!   :rolleyes:  :)

 

 

 

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Capital One is so annoying sometimes. Using your full credit limit tanks your credit score, so the responsible thing to do is to keep your balance low. They will not give you a credit limit increase unless you use all of your credit limit, and apparently, you can't keep a high credit line if you aren't using it up to the limit. Then, if your high balance reports on your credit report, they will deny you for a credit limit increase for high balances on revolving accounts. So what do they want? People carrying balances on maxed out cards or people who pay in full before the statement every month (or cycling the limit)? I think just about every other issuer understands that you need some breathing room between your monthly spending and your credit limit.

 

This reminds me a lot of Capital One bank. They will have full branches with staff, but they don't have any cash. If you want cash, you have to use their ATM to take it out or to deposit it. I saw a lady a while back who went in there because she lost her debit card. They couldn't give her any cash. All they could do was give her a cashier's check that she could take somewhere else to get cashed. The point is: they want to cut out a core function of the banking product in order to save themselves money (i.e. cash at the bank branch). The same principle is true for the credit cards. You're supposed to have a decent limit that is above your monthly spending. But they're too cheap to let you keep it, which kind of defeats the point of the card.

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I had a decent limit Crap1 card that had seen a max of 9% of the credit limit prior to the onset of the pandemic and paid off. I was notified by mail and discovered that my limit had been slashed. I immediately cancelled the Venture card and the Wal-Mart card. 

For months now, I get solicitations from them to accept another card. They go straight into the trash. 

Yes, it is just business. Crap1 threw it away and other companies have benefitted.

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7 hours ago, RehabbingANDBlabbing said:

Capital One is so annoying sometimes. Using your full credit limit tanks your credit score, so the responsible thing to do is to keep your balance low. They will not give you a credit limit increase unless you use all of your credit limit, and apparently, you can't keep a high credit line if you aren't using it up to the limit. Then, if your high balance reports on your credit report, they will deny you for a credit limit increase for high balances on revolving accounts. So what do they want? People carrying balances on maxed out cards or people who pay in full before the statement every month (or cycling the limit)? I think just about every other issuer understands that you need some breathing room between your monthly spending and your credit limit.

Let me say It’s no big deal, it’s not a personal issue, it’s just business after all.

 

I know that Capital One may be financially troubled and need reserves. OTOH, Bank of America doesn’t care if I use their credit card, which is the same as the 3 cards I have with American Express.

 

Most importantly, Capital One is making credit line adjustments for those who have not fully utilized the credit line granted by Capital One. :)

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When I applied for the Venture Card, it was too late then  I couldn't apply for a 2fer's back-to-back approval. My guess on Capital One’s credit line reduction theory may be that a new policy was adopted a few years ago, so the first CLD started.

 

For many years, we have believed that Capital One is a reliable and decent credit card issuer, which ultimately comes to an end because prime borrowers with no blemish credit records in their credit files face shocking CLDs.

 

Capital One seems to rely on and adopt the subprime loan prototype. The prime borrower's PIF did not leave any balance, preventing them from charging monthly interest to make huge profits. Therefore, they would rather transfer your CLD line to secondary customers, who will hold huge balances to generate interest income. It is a risk that Capital One except and is willing to take.

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13 hours ago, MP80 said:

For many years, we a few have believed that Capital One is a reliable and decent credit card issuer

 

Fixed that for you.

 

I have typically had no problem benefiting from an issuers credit products in one manner or another.  It's certainly not a "one size fits all" situation, but with sufficient initiative and flexibility, there are damn few credit issuers with whom it hasn't been beneficial to do business with at one time or another.

 

Capital One has been the exception for me.  Now, I've taken it on faith that there are some here who've had productive account relationships with Capital One.  But from my vantage point, there have been marginal gains to be had and always at the expense of unwieldy account management practices.

 

Now, from what's been discussed, I'd expect my 2008 $14k Quicksilver CL would be at risk (it sees a small charge annually).  Not a peep though.  And I don't know what to expect of the 3 other cards that I find are now managed by Cap 1 (Walmart, Pottery Barn, West Elm) ... that's another $31k of infrequently used open credit.  Now, surely they have someone borrowing at 24% APR who's simply gagging for more credit!

 

Maybe I simply don't care enough about my credit lines with them that it takes all the fun out of threatening a CLD? ...

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:D

7 hours ago, hdporter said:

 

Fixed that for you.

 

I have typically had no problem benefiting from an issuers credit products in one manner or another.  It's certainly not a "one size fits all" situation, but with sufficient initiative and flexibility, there are damn few credit issuers with whom it hasn't been beneficial to do business with at one time or another.

 

Capital One has been the exception for me.  Now, I've taken it on faith that there are some here who've had productive account relationships with Capital One.  But from my vantage point, there have been marginal gains to be had and always at the expense of unwieldy account management practices.

 

Now, from what's been discussed, I'd expect my 2008 $14k Quicksilver CL would be at risk (it sees a small charge annually).  Not a peep though.  And I don't know what to expect of the 3 other cards that I find are now managed by Cap 1 (Walmart, Pottery Barn, West Elm) ... that's another $31k of infrequently used open credit.  Now, surely they have someone borrowing at 24% APR who's simply gagging for more credit!

 

Maybe I simply don't care enough about my credit lines with them that it takes all the fun out of threatening a CLD? ...

HD, thanks for the correction... :wave:

 

Capital One is recalibrating the SL they gave me, which is a $30,000  flexible credit line. Capital One, their algorithm is working to rectify the generous credit limitation exposure because my credit limit has never been used more than 30% of the total credit limit in the past 5 years. The letters they sent to me are based on my seldom-used of Capital One Bank credit card account.

 

Apparently, Capital One aggressively monitors and analyzes my credit reports like a hawk. This is such an anomaly. It has deviated from strict principles of validity logic where it has never been monitored like this before.

 

Yes, I applied for 3 cards and 3 approvals within 3 months. However, I haven't applied for anything in the past two years. My queries on Equifax and Experian files are absolutely zero. However, there is only 1 query in my TransUnion report. In addition, my utilization rate was always $0, and it is still the case. There is nothing there, there! So the whole thing involves a notorious slogan: "Use it or lose its theory!"  :D

Edited by MP80
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7 hours ago, hegemony said:

I dumped my 80k and 30k crap1 cards once they stopped allowing combos. rewards are mediocre at best.

As I remembered, at one time but very briefly, they do allow you to combine cards. 

 

Soon after the cards combined policy was being abusive, Capital One rescinded the policy of combination of the card. 

 

I think closing the account justified the ongoing constant threat of being CLD by Capital One in the back of one mind does make sense. Additionally, save me the annual fee of $59.

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Is this directed at the highest dollar amount reported on a customer's statement balance or the highest average dollar amount charged to the card each month?

 

I am not personally familiar with these credit decreases as I am on the other end of the spectrum seeking CLs because of a short credit history profile.  However, I would imagine if you are charging over 90% of your CL, you should be exempt from this adjustment even if you zero out your due by balance. 

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7 hours ago, credithoarder said:

Is this directed at the highest dollar amount reported on a customer's statement balance or the highest average dollar amount charged to the card each month?

 

I am not personally familiar with these credit decreases as I am on the other end of the spectrum seeking CLs because of a short credit history profile.  However, I would imagine if you are charging over 90% of your CL, you should be exempt from this adjustment even if you zero out your due by balance. 

You will be spared from CLDs from Capital One if your line is in the vicinity of $5K to $10K.

 

If your credit card account limit is $20,000 or higher, you will encounter a threat from Capital One, requiring your credit limit to be lowered.

 

It seems that Capital One is joining Quad of Entities (Synch, Comenity, Barclays, and Cap One), haha... My interpretation of Quad, a notorious CLDs reputation and credit accounts closure. 

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15 hours ago, hdporter said:

Now, from what's been discussed, I'd expect my 2008 $14k Quicksilver CL would be at risk (it sees a small charge annually).  Not a peep though.  And I don't know what to expect of the 3 other cards that I find are now managed by Cap 1 (Walmart, Pottery Barn, West Elm) ... that's another $31k of infrequently used open credit.

Whenever a credit issuer pulls something like a CLDs out of blue thin air,  without any justification of fault by the consumer, it's a conspicuous remarkable event. The credit communities are startled, dazed, and confused,  like something sticking it to us dumbfounded scallywags.

 

Capital One is no longer a trusted brand for many people. Please pay attention to the credit lines of acquisition or co-branding partners they currently issue and manage, seeing that you don't know when they will come to reduce your credit line. 

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Capital One, the third-largest card issuer potentially trimming my credit lines in the coming month of November. Capital One banks see all that unused available credit out there as risk. I'd had survived the two purges of CLDs in the past, unfortunately, not this third time.  

 

On top of the heightened risk as millions of Americans face income and job losses, so they're slashing it, not just me but for millions of other people. 

I'M DISAPPOINTED IN CAPONE!!! Treating me like a king is finally over*. 

 

In addition, The move isn't going over with Capital One customers, with many voicing complaints on social media about the decision. "Long time customer, both savings, checking, and credit card," one person wrote. "Many years using my card for international travel ... Decided to reduce my line of credit by more than 1/2. GUESS LOYALTY MEANS NOTHING!"

 

Since the Pandemic devastation, the ravaged almost one-third of U.S. credit card users had had their accounts either closed or their credit limits reduced involuntarily. Now, Capital One is tightening the reins because they're fearful that more households could face financial difficulties in the coming months, i.e. I wonder just how many losses has Capital One taken since the Pandemic.

 

A Capital One letter sent to me said the company kept credit limits "significantly above" a customer's highest balance of the last year to make sure people could continue to use the card despite the cut to credit limits.

 

*Kudos to Capital One! At least they warned me!!!   default_rolleyes.gif  

 

 

 

9v7BVXQ.jpg

The letter states you can opt out of the review. What exactly does that mean? Is that an option to avoid having your limit decreased?

 

I tried calling and after entering card number and last 4 of SSN, it states, "This offer is not available to you at this time."

 

Is there something you are leaving out?

 

 

Sent from my iPad using Tapatalk

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HD, thanks for the correction... :wave:
 
Capital One is recalibrating the SL they gave me, which is a $30,000  flexible credit line. Capital One, their algorithm is working to rectify the generous credit limitation exposure because my credit limit has never been used more than 30% of the total credit limit in the past 5 years. The letters they sent to me are based on my seldom-used of Capital One Bank credit card account.
 
Apparently, Capital One aggressively monitors and analyzes my credit reports like a hawk. This is such an anomaly. It has deviated from strict principles of validity logic where it has never been monitored like this before.
 
Yes, I applied for 3 cards and 3 approvals within 3 months. However, I haven't applied for anything in the past two years. My queries on Equifax and Experian files are absolutely zero. However, there is only 1 query in my TransUnion report. In addition, my utilization rate was always $0, and it is still the case. There is nothing there, there! So the whole thing involves a notorious slogan: "Use it or lose its theory!"  


Describe "seldom-used". You are leaving out relevant data which may help others or at least lessen your claims of CapOne being the boogey man.


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19 hours ago, MP80 said:

Capital One is no longer a trusted brand for many people. Please pay attention to the credit lines of acquisition or co-branding partners they currently issue and manage, seeing that you don't know when they will come to reduce your credit line. 


Which is why until someone else more trustworthy comes along, I will not have a Wal-Mart card. 

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14 hours ago, PotO said:

The letter states you can opt out of the review. What exactly does that mean? Is that an option to avoid having your limit decreased?

 

I tried calling and after entering card number and last 4 of SSN, it states, "This offer is not available to you at this time."

 

Is there something you are leaving out?

 

 

Sent from my iPad using Tapatalk

Good catches on the toll-free phone number. 👍  Thanks! 


Meh, There's no action needed to call Capital One. :)

 

When I applied, I was a prime borrower, and they noticed when they issued a credit line of $30,000 and assigned an APR of 13.25% to my account. As I said above, they are struggling with reserves and may use these CLD lines for credit or loan arrangements for borrowers with poor credit records as their focus paragon. 

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14 hours ago, PotO said:

 


Describe "seldom-used". You are leaving out relevant data which may help others or at least lessen your claims of CapOne being the boogey man.


Sent from my iPad using Tapatalk

 

 

Credit profile...

 

FICO 8 on all CRAs 790-805 (no loan hacks) consistently throughout the years.

Utilizations are always at 0% to credit limit ratio.
DTI - 0

Inqs - 1 on TransUnion 1 on Equifax.

 

Starting in July, I made all my purchases through those recently approved credit cards, PenFed, and Navy Federal cards.  The purpose is to meet the expenditure required by the SUB.

 

Therefore, there are only a few charging transactions on the Capital One Venture Card that are less than one hundred dollars, and there were no charges through the following month. In other words, I skipped the month of August situation that I have not used for a month, which has never happened before.

 

But for them to take AA because of this is absolutely weird and outlandish.

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11 hours ago, MP80 said:

Good catches on the toll-free phone number. 👍  Thanks! 


Meh, There's no action needed to call Capital One. :)

 

When I applied, I was a prime borrower, and they noticed when they issued a credit line of $30,000 and assigned an APR of 13.25% to my account. As I said above, they are struggling with reserves and may use these CLD lines for credit or loan arrangements for borrowers with poor credit records as their focus paragon. 

 

Do you routinely chop your leg off at the knee? 

 

You take pains to explain that your card use was next to nil while you satisfied SUB spend requirements on a couple of new cards.  Cap One invites to you opt out of the review if you anticipate that you spending will increase.  And you response is, "There's no action needed to call Capital One".

 

I'd understand that response if you were indifferent to whether they cut your limit or not.  (But it's very apparent that you're not.)

 

I get that you may be annoyed at the simple alert that they may cut your line and the added request that you contact them if you wish to opt out.  But, failing to take advantage of that option bear some resemblance to "cutting off your nose to spite your face".

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7 hours ago, hdporter said:

 

Do you routinely chop your leg off at the knee? 

 

You take pains to explain that your card use was next to nil while you satisfied SUB spend requirements on a couple of new cards.  Cap One invites to you opt out of the review if you anticipate that you spending will increase.  And you response is, "There's no action needed to call Capital One".

 

I'd understand that response if you were indifferent to whether they cut your limit or not.  (But it's very apparent that you're not.)

 

I get that you may be annoyed at the simple alert that they may cut your line and the added request that you contact them if you wish to opt out.  But, failing to take advantage of that option bear some resemblance to "cutting off your nose to spite your face".

I can assure you the nearby credit forum folks there also received this alert from Capital One before I received the snail mail.

 

Capital One is getting my swipes more than any of my other creditors. When it comes to travel resorts tourist destinations, it's always the Capital One Venture Card that takes the lead in paying for travel expenses.


I'm effing annoyed of Capital One arse twist hoopla dancing around. I see no purpose Kowtow to them to diminish myself. Do what they need to do and whatever outcome it brings, it won't affect me.

 

Soon, I will replace the travel expenditure with the Flagship Rewards Card from NavyFed.

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6 hours ago, MP80 said:

I can assure you the nearby credit forum folks there also received this alert from Capital One before I received the snail mail.

 

Capital One is getting my swipes more than any of my other creditors. When it comes to travel resorts tourist destinations, it's always the Capital One Venture Card that takes the lead in paying for travel expenses.


I'm effing annoyed of Capital One arse twist hoopla dancing around. I see no purpose Kowtow to them to diminish myself. Do what they need to do and whatever outcome it brings, it won't affect me.

 

Soon, I will replace the travel expenditure with the Flagship Rewards Card from NavyFed.

 

I'll grant everything you state here is accurate.  However, the Cap One letter appears to invite you to sideline any CL review with a 2 minute call, allowing you to trim the relationship on your terms.

 

On the other hand, my early experience with C1 was sufficiently dysfunctional that I've only maintained the thinnest of relationships with them over the course of 25 years.  I should remind myself that when it comes to a "rational" course of action with C1, all bets are off.

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6 hours ago, hdporter said:

 

I'll grant everything you state here is accurate.  However, the Cap One letter appears to invite you to sideline any CL review with a 2 minute call, allowing you to trim the relationship on your terms.

 

On the other hand, my early experience with C1 was sufficiently dysfunctional that I've only maintained the thinnest of relationships with them over the course of 25 years.  I should remind myself that when it comes to a "rational" course of action with C1, all bets are off.

HD, thanks for your keen perspectives!  :wave:

 

Even if I pass the third wave of credit line clearance, if I do not make full use of my line, there will be more CLDs coming. This is the cold hard truth.

 

By the way-my other bank cards' credit limit is much higher than Capital One Venture Card. They did not pressure me to swipe their card. Capital One must have been seriously hurting in the economic downturn, record-breaking write-offs, and people continue going bankrupt. Imagine a person who filed Chapter 7 owes $50,000 to $80,000 to Capital One in each case. During the entire pandemic, there were thousands or even millions of these Chapter 7 cases. 

 

Here's the topic "Pending Venture Card CDL. :("

 

"So I got an interesting email from capital one today. I’ve kind of been expecting it. It’s my Venture card and it was approved in October of 2017 with $30K CL about 15 months after my BK7 was discharged. I was absolutely thrilled when I got approved for this card. Last year when Capital One did their mass CLD's my first large CL card (which was a $15K grandfathered Savor card) was decreased from $15K to $5K and now it looks like they’re coming for my Venture card too. At least this time they gave me a warning. I was so angry about the last CLD (my only CLD ever) that I stopped my direct deposit into my Capital One checking account.  I’ve been expecting this and so I already have a Navy Flagship card with a $31.5K limit. I have about $280K in total credit limits but I don’t want a second CLD on my reports. Part of me wants to just cancel the card but I got it the last day that the annual fee was still $59 so I’ll never get those terms again. I only spend about $100 a month on the card because I don’t travel and they stopped letting you redeem the points for non-travel-related purchases.  I guess I’ll call them on my next day off (Friday). How much do you think they’ll want me to spend to keep my current credit limit?  My annual fee will be charged in November. I’m glad they at least warned me about this before they charged me for the fee. Has anyone else gotten a similar letter? Credit profile wise I don’t think I’ve ever been stronger. Added two accounts last October but none since and only one inquiry in the last year." 

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11 hours ago, MP80 said:

By the way-my other bank cards' credit limit is much higher than Capital One Venture Card. They did not pressure me to swipe their card. Capital One must have been seriously hurting in the economic downturn, record-breaking write-offs, and people continue going bankrupt. Imagine a person who filed Chapter 7 owes $50,000 to $80,000 to Capital One in each case. During the entire pandemic, there were thousands or even millions of these Chapter 7 cases. 

 

You over-estimate both what is being filed BECAUSE of the stupid shutdowns AND the amount that the average filer would have with CrapOne. 

 

Almost anyone with that sort of liability to a lender is ALSO going to be someone with savings and isn't living hand to mouth.  Those are the people who generally avoided running up debt that they couldn't afford. 

 

There is a chart out there which shows that California had a whopping 38K non-business filings in the 12 months through June of this year.  Florida was next and did not even see 30K non-business filings under either Chapter.  There are States where the numbers were in triple-digits.  That is a far cry from 'millions' of Chapter 7 cases.  

 

While I am not a fan of CrapOne, it is disingenuous to whine about a pending line cut when they give a very simple option to AVOID said line cut...

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At first, I never app'd CapOne because they pulled all three bureaus.

 

Then, I didn't app them because I couldn't really find value in them.

 

And then, I noticed that they didn't seem to like big fat perfect files, and instead wanted people a little more on the verge...

 

And now?  Seeing what they're doing across the board?  I didn't dodge a bullet; I dodged a nuclear warhead of disappointment.

 

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12 hours ago, centex said:

You over-estimate both what is being filed BECAUSE of the stupid shutdowns AND the amount that the average filer would have with CrapOne. 

 

Almost anyone with that sort of liability to a lender is ALSO going to be someone with savings and isn't living hand to mouth.  Those are the people who generally avoided running up debt that they couldn't afford. 

 

There is a chart out there which shows that California had a whopping 38K non-business filings in the 12 months through June of this year.  Florida was next and did not even see 30K non-business filings under either Chapter.  There are States where the numbers were in triple-digits.  That is a far cry from 'millions' of Chapter 7 cases.  

 

While I am not a fan of CrapOne, it is disingenuous to whine about a pending line cut when they give a very simple option to AVOID said line cut...

I am just speculating that the daily media broadcasts scrutinize the effects of terrible economic trends.

 

The people that are submitting Chapter 7 are only a part of the mosaic. There is another ongoing business dilemma that requires Capital One to free up reserves.  The newly acquired co-brands partners like William Sonoma, Walmart, and other companies.

 

These newly-added co-branded card combinations are in the millions and need reserve backup for maintenance and management. You get the reserves by CLDs other credit cards portfolios. Hell, Capital One is not a huge company with trillions of assets like Chase Bank or Bank of America. I think Capital One wants to wear a big hat, but the head is too big to fit.

 

In any case, you can no longer trust them of their roguery, backstabbing, double-dealing twister. Good and decent banks rarely resort to these pranks, but instead, they destroy their reputation and prevent their growth.

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7 hours ago, brainchasm said:

At first, I never app'd CapOne because they pulled all three bureaus.

 

Then, I didn't app them because I couldn't really find value in them.

 

And then, I noticed that they didn't seem to like big fat perfect files, and instead wanted people a little more on the verge...

 

And now?  Seeing what they're doing across the board?  I didn't dodge a bullet; I dodged a nuclear warhead of disappointment.

 

Capital One is classified as the primary and secondary (prime and subprime)issuer of the credit card portfolio. I believe they were the first financial institution to issue a $200 gold card to consumers with bad credit 20 years ago. The adaptation of the subprime loans policy was earlier than that of the Subprime Providian (now Chase).

 

The current dichotomy of prime quality and subprime loans of Capital One does not work well together, and nowadays, Capital One’s reputation is not good. 

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