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Cap One policy towards cardholders during bad economic times (and/or with underutilised tradelines)?


Flashman
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I am hoping a few board members can chime in with their Cap One experiences regarding the following:

 

A) How did Cap One treat cardholders during the 2008-ish timeframe?

 

B ) How does Cap One generally treat people who have underutilised tradelines with them (e.g. under 10% util)? 

 

With the credit market apparently undergoing a tightening phase (to say the least), I am trying to form a better idea of what cardholders might expect from Cap One in the months ahead.  I have some general impressions, but I would be grateful for feedback from accountholders about what experiences (good or bad) they have had with the firm.

 

 

 

Edited by Flashman
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4 hours ago, Flashman said:

I am hoping a few board members can chime in with their Cap One experiences regarding the following:

 

A) How did Cap One treat cardholders during the 2008-ish timeframe?

 

B ) How does Cap One generally treat people who have underutilised tradelines with them (e.g. under 10% util)? 

 

With the credit market apparently undergoing a tightening phase (to say the least), I am trying to form a better idea of what cardholders might expect from Cap One in the months ahead.  I have some general impressions, but I would be grateful for feedback from accountholders about what experiences (good or bad) they have had with the firm.

 

 

 

If you've built up your credit significantly on your total credit limit, I suggest you go ahead and don't let Capital One bother or stress you out.

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About two years ago, early in the pandemic, they panicked and cut credit limits.  Mine was slashed from >$40k to $10k.  Some people were able to avoid a CLD by opting out, and some were not.

 

I was using the card consistently during every billing period and PIF, but because I had better rewards options available, I was only averaging around $100/month in spend on their card, which did not change much during the pandemic.

 

I sense some anxiety in the OP, as this subject has popped up across multiple topics.  I wouldn't recommend worrying about them at all, for the following reasons:

 

1.  There are many better options for rewards, so as someone's credit improves, they can continue to add cards from other lenders, and Capone will become irrelevant.  They are simply not needed after credit improves to a certain point.

 

2.  They are known to panic in anticipation of bad times, so people can just live with it by pushing limits as high as possible in good times, both on Capone cards and on all others.

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Posted (edited)
7 hours ago, nemo said:

About two years ago, early in the pandemic, they panicked and cut credit limits.  Mine was slashed from >$40k to $10k.  Some people were able to avoid a CLD by opting out, and some were not.

 

 

Can you please clarify what you mean by "opting out"?  I am afraid I am not familiar with that phrase in the context of avoiding CLDs.

 

Were I to guess, I would guess that by "opt out," you mean that, in exchange for not having their line of credit reduced, they are foregoing any opportunities to have it increased.

 

Do I miss my guess?

Edited by Flashman
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4 hours ago, Flashman said:

Can you please clarify what you mean by "opting out"?

 

During the last wave of CLDs, Capone sent a letter to some people ahead of time warning them of the coming CLD and saying that if they wanted to opt out of it, they could call customer service.  Not everybody received the letter, and not everybody who received it got it in time to opt out before the CLD happened.

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Posted (edited)
43 minutes ago, nemo said:

During the last wave of CLDs, Capone sent a letter to some people ahead of time warning them of the coming CLD and saying that if they wanted to opt out of it, they could call customer service. 

 

Was the opting out process as simple as a single phone call to customer service to tell C1 "Please, no"?  Or, rather, did the phone call mean the caller could expect a face a battery of questions to prove that s/he was worthy enough to keep their current line of credit with Cap One?

Edited by Flashman
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1 hour ago, Flashman said:

Was the opting out process as simple as a single phone call to customer service to tell C1 "Please, no"?  Or, rather, did the phone call mean the caller could expect a face a battery of questions to prove that s/he was worthy enough to keep their current line of credit with Cap One?

 

I don't recall the details for Capone.  Also, the notification may not have been explicit about opting out; Chase did a very explicit notification around the same time.  There are more details in this thread.

 

https://creditboards.com/forums/index.php?/topic/623117-capital-one/

 

I wouldn't get attached to the details, though.  Each round of CLDs is a little different, and there is no reason to believe the next round will be the same as anything before.  The only thing certain is that there will be a next time.

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On 6/26/2022 at 2:10 PM, Flashman said:

I am hoping a few board members can chime in with their Cap One experiences regarding the following:

 

A) How did Cap One treat cardholders during the 2008-ish timeframe?

 

B ) How does Cap One generally treat people who have underutilised tradelines with them (e.g. under 10% util)? 

 

With the credit market apparently undergoing a tightening phase (to say the least), I am trying to form a better idea of what cardholders might expect from Cap One in the months ahead.  I have some general impressions, but I would be grateful for feedback from accountholders about what experiences (good or bad) they have had with the firm.

 

 

 

Crap1 and I had a major blow up in 2008 - as soon as the credit markets tightened, they started Balance Chasing me, cutting $30,000 off my CL and running my Util from 5% to 95%. Needless to say, FICO doesn't like that and my scores tanked because of that. The tanking of my scores led to several other CC's  to closing my accounts altogether which led to massive increases in minimum payments and interest rates. Remember - my total debt load hadn't increased by even $1 at the time, and Crap 1 started this. As a result, Crap 1 put me into the lowest rated bucket they have and I have been here ever since. Once you are in a Crap 1 bucket, there really is no way out. Your best bet with Crap1 is to simply close the account, pay them off and forget about them because at the first hint of a problem (real or imagined) they will literally throw you to the wolves. How do I know I am permanently bucketed? I waited the bad credit out, ran my scores into the 800's and re-apped for a Crap1 travel card. It was approved, with a $500 CL. Wow..... I could use their card to fly from Phoenix to Tucson, but not round trip. No amount of arguing would change it. So now I have #45,000 CL with Amex and $500 with Crap1. Guess which card goes with me to Europe twice a year.

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3 hours ago, nemo said:

 

I don't recall the details for Capone.  Also, the notification may not have been explicit about opting out; Chase did a very explicit notification around the same time.  There are more details in this thread.

 

https://creditboards.com/forums/index.php?/topic/623117-capital-one/

 

I wouldn't get attached to the details, though.  Each round of CLDs is a little different, and there is no reason to believe the next round will be the same as anything before.  The only thing certain is that there will be a next time.

 

Thank you for the clarification.  As usual, the only thing certain...is that there is very little that is certain.

 

Earlier you mentioned:

 

14 hours ago, nemo said:

I sense some anxiety in the OP, as this subject has popped up across multiple topics.  I wouldn't recommend worrying about them at all, for the following reasons:

 

1.  There are many better options for rewards, so as someone's credit improves, they can continue to add cards from other lenders, and Capone will become irrelevant.  They are simply not needed after credit improves to a certain point.

 

2.  They are known to panic in anticipation of bad times, so people can just live with it by pushing limits as high as possible in good times, both on Capone cards and on all others.

 

 

Agreed.  I long-ago learned that applying for credit cards/CLIs in a hurry due to circumstances is a poor way to play the credit game.

 

In this case, I am trying to gather information for an older chum who has a single card issued by....ah, you have already guessed!

 

The problem is not so much that they have a single card, but that they have refused to pick up any others.  I have been up and down with them about having how a card does not necessarily equate to carrying a balance, etc., but to date my advice has fallen on deaf ears.

 

Therefore, I was hoping to get a better idea of what they might expect in the hopes of preparing them for when the ax falls.  It sounds as though the best advice I can hope to give is something along the lines of, "Cap One may halve your tradeline, cut it by 3/4, cancel it altogether...or leave it alone entirely.  There is just no telling."

 

As you say, Cap One is fond of handing out CLDs when things go pear-shaped and I am afraid that this person's stubbornness is setting them up for a sharp disappointment.  However, I realise only so much can be given in the way of advice before one is forced to throw up one's hands and accept things as they are rather than how one would wish them to be.

 

(The process is tantamount to watching Lucy yank the football away from C. Brown, but with the whole affair taking place in slow motion.)

 

Any road, I am hoping that, between my (gently) urging them to get their credit house in order and the signs that the US economy is heading in a southward direction becoming unmistakable, they will actually feel compelled to do something to put themselves in a better position, even if their timing leaves a great deal to be desired.

 

 

 

 

 

 

 

 

 

 

 

 

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Posted (edited)
1 hour ago, Flyingifr said:

Crap1 and I had a major blow up in 2008 - as soon as the credit markets tightened, they started Balance Chasing me, cutting $30,000 off my CL and running my Util from 5% to 95%.

 

Thank you for the reply.  This is exactly the sort of thing I am worried about.

 

I understand Cap One may come in handy when someone is rebuilding credit and has few choices open to them.  However, your story confirms my general impression of them as the sort of outfit that is best dealt with as briefly as possible and relegated to "pack of gum" status at the first opportunity.

 

Had Cap One subjected me to the same experience they subjected you to, I would have had a picture of their CEO up on a dartboard in no time.

 

 

 

 

Edited by Flashman
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46 minutes ago, Flashman said:

(The process is tantamount to watching Lucy yank the football away from C. Brown, but with the whole affair taking place in slow motion.)

 

Great way to describe it!

 

32 minutes ago, Flashman said:

However, your story confirms my general impression of them as the sort of outfit that is best dealt with as briefly as possible and relegated to "pack of gum" status at the first opportunity.

 

Agreed.  Sorry to hear about @Flyingifr's situation, which is common.

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