Author Topic: CapitalOne denied me more credit... (Read 14146 times)

brandino29

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CapitalOne denied me more credit...
« on: June 10, 2014, 08:23:25 PM »
...because we don't use the card enough. Yesterday I requested an increase to our credit limit so my wife can use it for work-related expenses that are going to add up fast (and be reimbursed of course). I got an e-letter today denying the increase because:

"Recent use of this account's existing credit line has been too low"

They further explain the reason by saying:

"In general, customers who are most often approved for credit line increases tend to use more of their credit line, either by spending and paying off the card each month or by keeping a balance on the account and paying it over a period of time."

Wait, whaaat? Since I rarely use the card and pay off the balances in full when I do, I'm denied a credit limit increase but the people out there racking up debt and not paying it off each month do...is that not completely backassward?

Roland of Gilead

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Re: CapitalOne denied me more credit...
« Reply #1 on: June 10, 2014, 08:30:53 PM »
I have their 2% cash back card and put EVERYTHING on it (except Costco stuff which goes on Amex). What is your main card?

FrugalSpendthrift

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Re: CapitalOne denied me more credit...
« Reply #2 on: June 10, 2014, 08:32:04 PM »
Wait, whaaat? Since I rarely use the card and pay off the balances in full when I do, I'm denied a credit limit increase but the people out there racking up debt and not paying it off each month do...is that not completely backassward?
Don't be offended, but you aren't a very good customer of theirs. Their good customers pay them interest.

zolotiyeruki

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Re: CapitalOne denied me more credit...
« Reply #3 on: June 10, 2014, 08:56:34 PM »
That's funny!

BTW, "good" CC customers aren't just the ones who pay interest. The CC companies get a cut each time you swipe as well, so even if you pay off the balance each month, they still benefit from your use of their CC.

You might consider just using the card for all your purchases, and paying it off in full each month. That's what my wife and I do--in fact, my wife takes it out of the checkbook when we use the CC, even though we don't actually pay for it until the bill arrives. It has the dual benefits of giving us that precious Cash Back while we still keep our finances in order.

Another Reader

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Re: CapitalOne denied me more credit...
« Reply #4 on: June 10, 2014, 08:57:25 PM »
You might try calling them and explaining that you have not used the card in the past, but because of a change in your wife's job duties, you now need to do a lot of transactions. You need a card with a higher limit to do this, and if they can't accommodate you, you will have to look elsewhere.

Customers that make them money are transactors (put a lot of transactions on the card but pay them off) and borrowers. Some card companies will increase the limit if they think you are going to become a profitable customer. The other option is to use the card along with another card to cover the overage and try again in a couple of months.

If the new expenses involve travel, there may be better card choices anyway.

Roland of Gilead

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Re: CapitalOne denied me more credit...
« Reply #5 on: June 10, 2014, 09:25:25 PM »
If the new expenses involve travel, there may be better card choices anyway.

CapitalOne is one of the few cards that doesn't charge a hefty FTF for international purchases.

Jamesqf

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Re: CapitalOne denied me more credit...
« Reply #6 on: June 10, 2014, 10:58:38 PM »
Simple solution might be to wait until you've put a few months of those expenses on the card, then ask for the credit limit increase.

Or get another card from a different company, preferrably with a signup bonus and 0% starting interest.

brandino29

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Re: CapitalOne denied me more credit...
« Reply #7 on: June 11, 2014, 07:24:21 AM »
I have their 2% cash back card and put EVERYTHING on it (except Costco stuff which goes on Amex). What is your main card?

It's the Venture Signature card, 1.25 miles per dollar spent, which I've been reasonably happy with. I didn't realize they had a 2% cash back card.

We don't have a credit card strategy per se. I end up just putting random purchases on cards here and there to keep them active and then pay them off in full. I typically use this Capital One card a couple of times a month for gas or grocery purchases, but never coming close to approaching the credit limit ($5k)

If the new expenses involve travel, there may be better card choices anyway.

CapitalOne is one of the few cards that doesn't charge a hefty FTF for international purchases.

We use this card exclusively when we travel abroad because of that.

You might try calling them and explaining that you have not used the card in the past, but because of a change in your wife's job duties, you now need to do a lot of transactions. You need a card with a higher limit to do this, and if they can't accommodate you, you will have to look elsewhere.

I'm planning to give this a shot today. Supposedly though you can't request a credit limit increase more than once per 6 months so we'll see if they stick to that.

Generally, I think the whole thing is just kinda moronic and was worth sharing for the irony of it.

MoneyCat

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Re: CapitalOne denied me more credit...
« Reply #8 on: June 11, 2014, 07:29:57 AM »
Don't feel bad. Capital One generally doesn't like to give credit line increases to anybody. They are notoriously stingy like that.

Roland of Gilead

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Re: CapitalOne denied me more credit...
« Reply #9 on: June 11, 2014, 07:53:42 AM »
Don't feel bad. Capital One generally doesn't like to give credit line increases to anybody. They are notoriously stingy like that.

I haven't seen that. We started with a 15,000 limit and they raised it by $10k or so every year, now it is $55,000

Maigahane

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Re: CapitalOne denied me more credit...
« Reply #10 on: June 11, 2014, 08:02:16 AM »
That's hilarious. DH has a CapOne card that we haven't used in literally 2 years. It has a tiny credit limit that I've considered increasing just so his debt/available balance ratio looks better but maybe we'd need to use it a bit before we tried....

Cpa Cat

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Re: CapitalOne denied me more credit...
« Reply #11 on: June 11, 2014, 08:19:06 AM »
My husband has (had - since we cancelled it) a card with a $500 credit limit from them. When we asked them to raise the limit, they denied it. Meanwhile, we have a ridiculous $30,000 credit limit from AMEX, $15,000 from Master Card and $10,000 from Visa. But by God, $501 is too much for Capital One!

We don't carry a balance on our cards, but use them regularly.

thepokercab

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Re: CapitalOne denied me more credit...
« Reply #12 on: June 11, 2014, 08:23:10 AM »
Don't feel bad. Capital One generally doesn't like to give credit line increases to anybody. They are notoriously stingy like that.

This has been my experience with CapitalOne as well. Just about every other card has given me credit increases over the years. They are very stingy it seems.

Roland of Gilead

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Re: CapitalOne denied me more credit...
« Reply #13 on: June 11, 2014, 08:36:25 AM »
It must be directly related to how much you use it. We put $5,000 to $6,000 on the CapitalOne card each month. Haven't paid a dime of interest but that is a lot of transaction fees for them. It is nice getting back more than a kilobuck a year.

MidwestGal

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Re: CapitalOne denied me more credit...
« Reply #14 on: June 11, 2014, 08:39:19 AM »
A CO card was my very first credit card. I used the tiny $500 credit line very often and paid it off weekly, they upped my limit to the card very quickly. I'd always heard they weren't prone to doing that so it was a surprise to me.

SpareChange

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Re: CapitalOne denied me more credit...
« Reply #15 on: June 13, 2014, 08:50:35 AM »
...because we don't use the card enough. Yesterday I requested an increase to our credit limit so my wife can use it for work-related expenses that are going to add up fast (and be reimbursed of course). I got an e-letter today denying the increase because:

"Recent use of this account's existing credit line has been too low"

They declined a cli for me for the same reason about 6 months ago. Never asked for one before. Had the account for over 14 years now. A few weeks ago I tried again on a whim and they increased it immediately by 2k (from 9k to 11k). My spending might have been a bit higher with a recent move, but I pay it off every month, and my utilization never crossed even 15% in that time. *Shrugs*

A_P_

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Re: CapitalOne denied me more credit...
« Reply #16 on: June 13, 2014, 09:15:18 AM »
Don't feel bad. Capital One generally doesn't like to give credit line increases to anybody. They are notoriously stingy like that.

This has been my experience with CapitalOne as well. Just about every other card has given me credit increases over the years. They are very stingy it seems.

Same here. It's my oldest credit card and has my lowest limit.

Jamesqf

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Re: CapitalOne denied me more credit...
« Reply #17 on: June 13, 2014, 11:57:42 AM »
Don't feel bad. Capital One generally doesn't like to give credit line increases to anybody. They are notoriously stingy like that.

I haven't seen that. We started with a 15,000 limit and they raised it by $10k or so every year, now it is $55,000

I've only had mine less than a year, but noticed that while most of the 0% interest for a year or more cards I've gotten start out with a credit limit around $5K, they were at $10K.

dragoncar

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Re: CapitalOne denied me more credit...
« Reply #18 on: June 13, 2014, 12:28:40 PM »
Don't feel bad. Capital One generally doesn't like to give credit line increases to anybody. They are notoriously stingy like that.

This has been my experience with CapitalOne as well. Just about every other card has given me credit increases over the years. They are very stingy it seems.

Maybe off topic, but how do you get a credit increase without a hard pull? I've literally never gotten a CLI in my life, even though I now make 3 times my starting salary out of college. I don't really need the increase, as I have way more credit than necessary. Just curious.

Roland of Gilead

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Re: CapitalOne denied me more credit...
« Reply #19 on: June 13, 2014, 12:31:24 PM »
Maybe off topic, but how do you get a credit increase without a hard pull? I've literally never gotten a CLI in my life, even though I now make 3 times my starting salary out of college. I don't really need the increase, as I have way more credit than necessary. Just curious.

Most of the time they just increase the limit without me asking but a few times I have called up and asked if they would up the limit. I have never been denied so far. Like I mentioned, I heavily use our CC and pay off the balance each month. We have never been late on a payment and have a credit score of 819.

MidwestGal

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Re: CapitalOne denied me more credit...
« Reply #20 on: June 13, 2014, 12:32:10 PM »
Maybe off topic, but how do you get a credit increase without a hard pull? I've literally never gotten a CLI in my life, even though I now make 3 times my starting salary out of college. I don't really need the increase, as I have way more credit than necessary. Just curious.

I actually found out while paying off my balance, glancing over one of the columns the credit limit had changed. I got the email maybe a day or two later. This has happened twice now. There were no hard pulls on my credit, so I'm guessing it was due to usage patterns and paying it off weekly.

frugalnacho

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Re: CapitalOne denied me more credit...
« Reply #21 on: June 13, 2014, 12:42:10 PM »
Don't feel bad. Capital One generally doesn't like to give credit line increases to anybody. They are notoriously stingy like that.

This has been my experience with CapitalOne as well. Just about every other card has given me credit increases over the years. They are very stingy it seems.

Maybe off topic, but how do you get a credit increase without a hard pull? I've literally never gotten a CLI in my life, even though I now make 3 times my starting salary out of college. I don't really need the increase, as I have way more credit than necessary. Just curious.

Mine have always periodically increased it. They just send me a statement saying the upped it from 7k to 9k or whatever. It has slowed down recently, and I don't think i've gotten an increase in several years, but that may be due to the fact that I never keep a balance and the most I ever put on the card in a month is like 20% of my limit. When I was getting regular increases I was putting a much higher % of my limit on the card each month.

chucklesmcgee

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Re: CapitalOne denied me more credit...
« Reply #22 on: June 13, 2014, 11:59:06 PM »
You can do a bit of manufactured spending for fund and profit. Buy a few Visa gift cards at CVS, buy money orders with them at Walmart, deposit the orders and pay off your credit card. Your rewards will exceed card fees if you have a decent rewards card and you can run a few thousand through your card this way without a problem. Not for everyone, but a good solution to getting Capital One to up your credit.