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

[swimmingwithsharks]

On 9/10/2023 at 9:46 PM, MP80 said:

8.79% made minimum payments, and 21.26% made full payments.
 

Another take on this: if someone is NOT carrying a balance month to month at CapOne, that consumer is an outlier, and certainly doesn't fit with the majority of CapOne cardholders. As the saying goes, the nail that sticks out is the one that gets pounded down. 

[MP80]

5 hours ago, swimmingwithsharks said:

 

Ahhh, now I see what you're saying. First, don't carry a balance. Second, if you must carry a balance, savvy, credit-worthy consumers should carry that balance with CapOne because CapOne WANTS them to carry balances, as opposed to other lenders who do NOT want a balance carried over each month, as the other lenders (not CapOne) are likely to decrease Credit Lines, balance-chase, and generally not be amenable to a revolver. 

 

Although the advice on CB here is still, pay off each balance in full each month, I see the wisdom now in your interpretation.

I must give it up that you have a cognitive intuition acumen. An excellent intake of complex info and transpired the analysis of the material. We need a person like you strategizing in a combat readiness position. 

[MP80]

6 hours ago, swimmingwithsharks said:

Another take on this: if someone is NOT carrying a balance month to month at CapOne, that consumer is an outlier, and certainly doesn't fit with the majority of CapOne cardholders. As the saying goes, the nail that sticks out is the one that gets pounded down. 

Yeah, absolutely agree! 

 

As a metaphorical description, I don't want to be that nail that sticks out so that Capital One can hammer it down, flatten it, or focus repeatedly and forcefully on something like CLD in the annual proposal.

 

This is the exact reason why I occasionally keep my 3-month balance payment below $1000 so that I don't become that nail that is soon to be flattened by a nail set.

[hdporter]

6 hours ago, MP80 said:

As a metaphorical description, I don't want to be that nail that sticks out so that Capital One can hammer it down, flatten it, or focus repeatedly and forcefully on something like CLD in the annual proposal.

 

And that captures in a nutshell my key aversion to C1:  They're like the proverbial guy who only has one tool -- a hammer; and everything looks like a nail to them.

[MP80]

1 hour ago, hdporter said:

 

And that captures in a nutshell my key aversion to C1:  They're like the proverbial guy who only has one tool -- a hammer; and everything looks like a nail to them.

Yeah, they're the second-largest card issuer under Chase that's why they're brazen, with over 110 million cards circulating worldwide.

 

I would capitulate to the $30,000 credit limit reduction and hope it settles at $10,000 permanently. If the CLD continues to slip below the $10,000 credit limit, then, I will voluntarily close it. There's no need to feel bad, it's just business. 

 

I now have a number of credit card accounts exceeding $30,000. However, it is the only credit card that is reported as a flexible spending account in all bureaus.

 

I've said it many times, Capital One is a reliable card issuer that can meet your spending needs within your credit limit if you need it, and you won't end up like American Express only to get a call from them when they feeling anxious about your spending, even though the credit card is a charge account with no preset spending limit, they will call you first demanding you to pay upfront of $1K or $2K and then release the freeze on spending on your account. 

 

I am a tier 2 outlier on credit cards and FICO scores and only face a 2% risk to all my creditors. I don't need Capital One to be a crowbar for achieving additional high-limit cards or anything like that. My Capital One card ranks sixth among high-limit cards, and my line is much higher than Capital One's. 

[Goku4]

On 9/21/2023 at 6:11 AM, MP80 said:

Yeah, they're the second-largest card issuer under Chase that's why they're brazen, with over 110 million cards circulating worldwide.

 

I would capitulate to the $30,000 credit limit reduction and hope it settles at $10,000 permanently. If the CLD continues to slip below the $10,000 credit limit, then, I will voluntarily close it. There's no need to feel bad, it's just business. 

 

I now have a number of credit card accounts exceeding $30,000. However, it is the only credit card that is reported as a flexible spending account in all bureaus.

 

I've said it many times, Capital One is a reliable card issuer that can meet your spending needs within your credit limit if you need it, and you won't end up like American Express only to get a call from them when they feeling anxious about your spending, even though the credit card is a charge account with no preset spending limit, they will call you first demanding you to pay upfront of $1K or $2K and then release the freeze on spending on your account. 

 

I am a tier 2 outlier on credit cards and FICO scores and only face a 2% risk to all my creditors. I don't need Capital One to be a crowbar for achieving additional high-limit cards or anything like that. My Capital One card ranks sixth among high-limit cards, and my line is much higher than Capital One's. 

I am not clear.. Are we saying Capital One is sub-prime? lol

[Flyingifr]

Long ago I figured out how useless a Cap1 card can be. I was recovering from the effects of the 2008 recession where I lost all my credit cards. After I stabilized I apped for and got a Wells Fargo Secured card ($500) and a Cap 1 card (also $500). Over the next decade or so my finances greatly improved, all the baddies fell off my CRA and my FICO scores all were 800+ with over $200,000 in LIQUID assets. I apped for the Cap1 Travel card. I was approved - for the same $500 limit that I had a decade previously. As a travel card a $500 limit is useless. I contacted Cap1 and asked why. I was told I was "bucketed" - that once you are in a bucket, you stay there permanently.I thanked them and told them they needed the $500 limit more than I did.  Meanwhile Amex (Delta Platinum) gave me a Credit line of $30,000. I now channel literally ALL of my expenses through that card and I get a free vacation every other year just by using the accumulated points. In 2023 it was to Cabo and 2024 to Montego Bay. Cap1's loss is Amex's and my gain is how I see it.

[MP80]

21 hours ago, Goku4 said:

I am not clear.. Are we saying Capital One is sub-prime? lol

If you are a subprime customer, you will get a $300 subprime credit card with an annual fee.

 

You will be placed in a specific bucket indefinitely or permanently.

[MP80]

Capital One sent another email notifying that the credit card account may be subject to a review and that the credit limit may be reduced if spending is not adequately increased substantially.

 

The same solution that has been mentioned before, was to call the designated phone number and opt out of the review. 

 

This was my fourth time in 6 years. Nothing new here just Capital One scaring folks to spend more. 

 

"You can opt out of this review if you anticipate the spending activity on this account to change. Simply call 1-844-422-7183 by June 11, 2025, and follow the prompts."

[MP80]

Today I received my opt-out confirmation email and my credit line remains unchanged.

 

Capital One was very fast and everything was done within 24 hours of the dreaded notice. 

 

[swingline]

On 4/12/2025 at 2:32 AM, MP80 said:

This was my fourth time in 6 years. Nothing new here just Capital One scaring folks to spend more. 

 

They need to add value to their cards. As far as I can tell, the only thing I get from my Crap One cards is free currency conversion. Meanwhile I'm getting 5% or more CASH and at least 2% back with other cards. 

[MP80]

This Capital One Venture Card has a pretty good cash advance of 50% of the total limit. I carried this card for my entire vacation trip, to 15-20 cities and regional places, including all spending locations, and also took out flights, hotels, and rental cars. 

 

In about two weeks, I used this card continuously and made over 70 transactions with no interruptions during the spending, totaling $9,000 in credit card balances, although there were occasional purchases of small transactions here and there, but Capital One did not call, email, etc. The main thing is that they don't care how you spend it, as long as they can get the money.

 

I trust the Venture Card because of its spending flexibility and every charging transaction was completed smoothly without any hassles.

 

The downside is that this card has a $59 annual fee and lacks improvements in cash back and additional benefits. 

 

Bottom line is the Venture Card guarantees payment to any merchant and caters to all your spending from a cup of Starbucks to buying expensive jewelry, from a few dollars to a few thousand dollars, no questions asked, or the threat of cut-off spending if payment is not received immediately. 

 

It's safe to say with an iconic slogan: " don't leave home without it."

 

[TheVig]

I was with a friend last week who bought a new car. Put $10,000 down. Used his Venture X to make the down payment. When he tapped the card, Cap1 didn't flinch on approving the transaction. His card limit is $35k. 

 

If that's sub-prime, then I got some land to sell you in the everglades.

 

[swingline]

10 minutes ago, TheVig said:

I was with a friend last week who bought a new car. Put $10,000 down. Used his Venture X to make the down payment. When he tapped the card, Cap1 didn't flinch on approving the transaction. His card limit is $35k. 

 

If that's sub-prime, then I got some land to sell you in the everglades.

 

 

I've never bought a new car, but I bought a used one for $5k and I put it all on a Crapital One card and scored a $600 bonus, and had 0% interest for a year, plus 1.5% cash back. The dealership DID charge me 3% for paying with the card (only cost me 1.5% b/c of the cash back), and it was worth it for the bonus and the 0% for a year. 

[MP80]

I consider the cards issued by Capital One with a starting limit of $5,000 to be prime, while the $10,000 cards are considered super prime, such as the Venture and VX cards.

 

Capital One subprime cards are cards with starting limits of $100, $300, and $500, or cards with a credit limit increase of $50 to $100, which may be considered subprime by Capital One and have specific buckets associated with the account.

[Flyingifr]

4 hours ago, MP80 said:

I consider the cards issued by Capital One with a starting limit of $5,000 to be prime, while the $10,000 cards are considered super prime, such as the Venture and VX cards.

 

Capital One subprime cards are cards with starting limits of $100, $300, and $500, or cards with a credit limit increase of $50 to $100, which may be considered subprime by Capital One and have specific buckets associated with the account.

I refuse to get a Crap1 card because the card does not grow with you. I can understand low limits for people with low credit scores, but even after several years and a couple of hundred points added to the old credit score, Crap1 is still like Scrooge with its CLI's. And once you are in a certain bucket, you are there for life. That has been my experience with Crap1. YMMV.

[swingline]

3 hours ago, Flyingifr said:

I refuse to get a Crap1 card because the card does not grow with you. I can understand low limits for people with low credit scores, but even after several years and a couple of hundred points added to the old credit score, Crap1 is still like Scrooge with its CLI's. And once you are in a certain bucket, you are there for life. That has been my experience with Crap1. YMMV.

 

Crapital One has offered me different cards and switched them out over the years with increasing limits. I'm disappointed to see that they're gobbling up Discover though. 

[MP80]

14 hours ago, Flyingifr said:

once you are in a certain bucket, you are there for life.

Based on empirical data provided by "Quicksilver One" cardholders, I found that being put into the "bucket" means that the account will remain there indefinitely.

 

Their strategy to circumvent dodging the "bucket" dilemma is to apply for a higher-tier credit card through the pre-approval site, thereby obtaining a higher credit limit. Many people have been lucky enough to convince the computer algorithms to issue them a Capital One VX card. It is not difficult to understand why they would rather approve low-score holders with weak credit histories and reject those with good credit histories and high scores. Profitability is one of the main factors.