Capital One Sucks Slightly Less Now

After mentioning earlier this week that Capital One has been arbitrarily raising rates on their credit card customers, it’s only fair to report on one of their positive moves. But first, a bit of background….

Capital One has previously not reported credit limits to the credit bureaus, providing them instead with information only on actual balances. I know what you’re thinking — who cares? I pay my credit cards on time so my credit score is just fine, thank you. Well, you actually should care…

This is a decidedly bad thing for consumers in that credit utilization is an important component of your FICO credit score and, in the absence of information on credit limits, the scoring system will substitute your highest balance in place of your credit limit.

As a simple example, let’s assume that you have a credit card with a $1000 limit and a $450 balance. That works out to a utilization of 45% ($450/$1000 * 100%). However, if you card issuer doesn’t report the limit, and if your previous high balance was $500, then your utilization will appear to be much higher at 90% (i.e., $450/$500 * 100%). This higher utilization makes it look like you’re close to the end of your rope, such that you’re perceived as a bigger risk, causing your credit score to drop. Since utilization accounts for 30% of your credit score, and since your credit score influences the interest rates that you are eligible for, this can be turn out to be rather expensive.

So… I was pleased to read that Capital One recently stopped this ridiculous practice, and is now reporting credit limits. According to an article in the Seattle Times, this change of heart will boost the FICO scores of some of their 50 million customers by as much as 40 to 80 points.

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21 Responses to “Capital One Sucks Slightly Less Now”

  1. Anonymous

    So I thoght the same about them but this morning I went to check on the account and it was changed from 15% to 22% and then to top it off I get one of thier checks and it says 5.99% for 6 months and then I see its at 22%!!! I chat which is a waste of timke because the person is an $8hr person!!! So I call and get a jerk that the check wasn’t paosted until the 23rd and I sign it and gave it to the tire company on the 19th!!! he swiped it in the check machine and I thought I was doing the right thing and pay them off in 6 months but I’m screwed with the late date that the check was POSTED!!!! 4 days to post a check??? Sure thing!!! I will get my money back from them one way or another!!!

  2. Anonymous

    If capitol One is such a great company why do you guys not work there anymore? I doubt you ever worked there since most of their operations are based in India. Capitol One are scumbags and your internet suck up doesn’t stand against the opinions of thousands of unsatisfied former customers

  3. Anonymous

    i used to work in Capital One can you imagine how much bullshit i had to hear from you lame customers that dont know how to handle your finances and then you call crying to remove fees? i had to listen and swallow all your insults like if i was the one charging you the fees. the worst was when i got the calls, why am i over my limit??? i mean dont you know what you purchase???? capital one has a lot of policies to help you all but at least be polite when you call the company to do you the favor, instead of being all fed up with yourselves be a little more ashamed that you call for help. and no theres no debit card payments and the cutt off time to pay online is 3pm E i had it with all the customers i quit!

  4. Anonymous

    Hey guys due to all respect i have for you i would like to say a couple of things. first i feel that those employees talking bad about the company that gave them a job are so unprofessional, we are going through an economical world wide crisis and for them to give you guys a job, well you should be greatful its not up to you to comment if Capital One is a bad company or not.

    i mean why would you get a credit card if you cant afford it????

    Now credit card companies get the money from bigger institutions like visa AND mastercard do you guys think they will give the money away just like that??? of course if you borrow money you will pay interest on it, if not this companies wouldnt exist and last but not least if you guys read the terms and conditions all this info that you guys are crying so much about is on it and very clear. pay your full statement balance and avoid finance charges if not pay the interest rate you have, due to the crisis is logical they would raise the APR… there is no bad credit card companies out there just customers with no education.. read the terms and conditions!!!! youll be surprise of what you might find!!!

  5. Anonymous

    My credit card company – Capitalone
    My previous interest rate for several years – 9%
    Number of times I have missed a payment – 0
    Number of times I have had a late payment – 0
    Number of times I have exceeded my limit – 0
    My credit score – 0ver 800
    The rate capitalone jacked my rate to – over 17% (while I am deployed to Iraq)
    The amount of business Capitalone will ever get from me again – A BIG FAT STINKIN’ ZERO!
    The number of incumbents I will vote for in the next election – ANOTHER BIG FAT STINKIN’ ZERO!

  6. Anonymous

    Capital One is still NOT REPORTING credit limits. I have asked them to report it several times. Their response has been and still is as of 7/12/09, “until it hurts us, we won’t be reporting it,” “there is nothing we can do at this time,” “we will bring it up at our next meeting.” So if you have your credit limit report to the 3 credit bureaus, consider yourself lucky.

  7. Anonymous

    WRONG! They still suck. And not because they just doubled my interest rate despite my being a long time customer who always paid on time. Despite heaqring for some time about them jacking up interest rates they had left me alone. I now know why. I had kept a low balance on the card until last month when I had to rely on it for travel and hotel expenses to attend my grandmother’s funeral. The whole trip added around $1400 to my balance bringing it to $1800. Capitol One immediately sleazed (intentional misspelling) this chance to try to suck more money out of me.

    I decided to opt out of doing business with them in accordance with the notice they sent me but there was one term I wanted clarified. The opt out option description states that I will “be able to pay down your remaining balance at your existing terms” I found it fishy that the word terms was used instead of interest rate so I called for an explanation. The customer service rep just kept repeating the phrase they sent me on the notice despite my asking repeatedly if ‘terms’ meant interest rate. When I asked to speak to a supervisor I was left on hold for 15 minutes then disconnected. A second call resulted in the same responses with the hold and hangup after a second 15 minutes.

    I expect that Capitol One will be jacking my rate up to 30% any day now forcing me to take the money from a fund I had built up in case I get laid off.

    So you’re wrong they still suck.

  8. Anonymous

    What’s in your wallet…? Credit Card Fraud

    Some things I’ve learned about CapitalOne’s fraud protection “guarantee” while trying to clear up fraudulent charges on my account:

    1) When you file a fraud charge CapOne will immediately cancel your account and issue you new cards (makes sense). However, if any charges are sent through on the OLD account, they will honor them if they are from a vendor you’ve used in the past. That means, if the thief re-orders 800 pounds of cellulose cream from the same company she used the first time, even using your old, stolen card, CapOne will accept those charges, then make you file another fraud claim.

    2) CapOne makes no efforts to block or otherwise shut off future charges from companies that are proven to be fraudulent. CapOne instructed me to call the company submitting fraudulent charges, give them not only my old, canceled account number but also my new, active card number, and ask them (nicely) to stop charging anything on this card. When I asked the agent if she thought that was good plan, she said “not really, but we don’t contact merchants on a customer’s behalf.”

    3) CapOne will close a fraud investigation and send you a letter saying everything is OK, then months later reapply fraudulent charges and hold you responsible for them, even if the account is completely closed. Closed accounts, of course, have no internet access to statements or details, so there is no way to see what the charges are or even to pay them (if that’s your choice). Interest will accrue, however, until the account is cleared.

    And my favorite…

    4) CapOne customer service and the fraud dept will not help you once a fraud investigator has been assigned to a case. All communication must go through that person. And CapOne will not tell you who that person is so that you can proactively communicate.

    The FBI estimates that one in four Americans will be the victim of identity theft each year, and that over 85% of those will involve credit card fraud. CapOne is NOT the company you want to be dealing with during that time in your life. If you don’t have an account with them, don’t get one. If you have one, close it and go with another bank.

  9. Anonymous

    For the bozo’s that say most of the complaints here are from people who haven’t read their terms and conditions, clearly, you can’t READ.

    I too have had a capitalone card for over 4 years. I have NEVER missed a payment, nor have I ever been overdrawn. Well, just like many others here, they’ve left me a $500 credit line for 4 years and refused to increase it when I requested! Obviously, it showed how crappy capitalone is and that they are NOT concerned with building ANY relationships at all.

    Before I finish I want to mention my Beacon/FICO score is also 700+ like some others. So this isn’t like i’m some deadbeat so that isn’t any excuse for capitalone either.

    Anyway, the cream of the crop is this, I too was told to apply for a different capitalone card and i’d probably get a higher credit line. So I did so, I ended up with a LOWER CREDIT line and called to cancel that OLD account (since the interest rate was higher) and simply match my old PERFECT STANDINJG ACCOUNT a Measly couple hundred dollars, just to show good faith for my perfect history and as long as i’ve been with them.

    And after all, it’s still a capitalone account so the relationship is with the same bank so who cares, I closed the other account out ANYWAY! Well get this, I call and speak to a Supervisor who sounds as slow and “LD” as the other reps. He proceeds to speak like a robot and tells me capitalone reviews accounts periodcally…BLAH BLAH BLAH…I said shut your piehole you LD SOB. I’m thru with Capitalone…..cancel my new account and I’ll never do business with you again.
    They did me a favor…..reading all these posts did me a FAVOR…I have a citibank card with 10 times the creditline, an extremely low interest rate, and SUPERIOR CUSTOMER SERVICE…citibank really puts capitalone to SHAME… Capitalone really does suck.

    They lost a guy who had been with them for years, who NEVER had an OD fee or a late fee, who made their payments on time and who used their card all the time….not anymore and NEVER AGAIN…capitalone totally, totally SUCKS.

  10. Anonymous

    I had a Capital One Visa account for years. In recent months there was fraudulent activity which they resolved promptly and issued another card. Two months later there was fraud on the new card. I finally just closed the account after having to go through the bullshit of fraud reporting AGAIN. There must be someone at Capital One selling card holder info. I can see this happening once, but not twice. It has never happened with my Mastercard with company or my Amex. The truly shitty thing about Capital One is that I wanted to donate my remaining Rewards points. Apparently, they don’t transfer them to other institutions, not even for charity.

  11. Anonymous

    Stay Away from CapitalOne

    I’ve just canceled my card. The reasons, in order of importance are:

    1. Customer Service (or lack thereoff), rude, lack of cummunication with me and with

    other agents, transfer from one to the other w/o passing on or recording any information

    about the call, etc.

    2. Utter chaos in security verification system and approval of charges from online


    I had a card from CapitalOne which was fairly new, hardly used, but for some reason the

    last digit of my security code was partially wiped off the card. I attempted to make an

    online purchase, and gave the wrong security code thinking I knew the number, which

    turned out to be wrong. The website replied that the charges were declined. I looked at

    the order and noticed an error in my billing address. Thinking this was the issue, I

    corrected it and tried again–same reply. I then thought maybe it was a browser issue

    (this was probably the stupid point on my part–don’t try 3 times…) so I tried again

    from Explorer with the same result.

    I quickly called CapitalOne assuming there was a problem with my card. They assured me

    that all three charges were approved! They canceled one of the three, but then said “I’m

    not sure I should have canceled the charge” and told me I need to contact the merchant,

    but if there is any funny business I should call the fraud department. Note that this

    whole time I had no idea I was using the wrong number because when I told the agent that

    I wasn’t sure about he security code she assured me that it was correct because the

    charges were approved.

    The next morning I called the merchant, who assured me that there was no order because

    the card was declined 3 times. I called back C1 and was assured that was not the case. I

    got both the merchant and the fraud department on the phone together, the merchant

    insisted that the card was declined 3 times, C1 insisted that on their end it was

    approved, and that it must be a glitch with the merchants bank. The merchant assured me

    there was no order, and that if I wanted to make the purchase I should call back and try

    it on the phone. After the merchant hung up, the conversation with the fraud department

    made me think that maybe the merchant was fishy. C1 assured me there would be no charges

    (they deleted the charges). Of course that later turned out also not to be the case.

    The next week I figured I would try again with a different purchase, different website,

    same story. I called the merchant, was assured it was declined, and they told me that it

    was the code again. I called C1 and said there was a problem with the code, told them the

    code and they told me it was incorrect. Now I knew. However, they assured me that all the

    charges were still there (previous ones as well) even though I know there were no order,

    and they couldn’t cancel the charges.

    This went on and on, hours on the phone, being transfered from one to another, being hung

    up on, given ‘technical’ explainations etc, but nobody actually trying to help resolve my

    issues — they just wanted to ask me endless ‘security’ questions, ask me repeatedly to

    ‘verify’ the charges which I continued to tell them were all in error, over and over and

    over. I spent hours on the phone.

    I found myself wondering how this works. Let’s say someone got my credit card number from

    a purchase w/o the security code — evidently the charges would be accepted? Sound secure

    to you? And the flip side — I’m getting charged for things I can’t get because the

    merchant is told it’s declined.

    blah blah blah. Find yourself a card that can actually talk sense, keep track of the

    issues, take notes, talk to each other, and keep your card actually secure. CapitalOne is

    not that card. Incompetence and chaos is the driver there.


  12. Anonymous

    How often does capital one raise credit limits?
    I got my first Capital One about 5 mo’s ago..and the last statement I recieved they raised my limit $200.
    do they do this every few months..and can I opt to not have my limit raised?

  13. Anonymous

    So, Capital One is finally changing this policy—is this reason to celebrate? For many years, consumers having been paying the price for Capital One’s aggressive marketing and consumer index models. I don’t understand how anyone could trust a company that intentionally brought harm to their card holders.

    Maybe I am a skeptic, but I truly believe that IF Capital One is changing this policy, they have another one up their sleeve that is just as insidious.

    We as consumers have a choice. Why would we CHOOSE to remain loyal to a company that has intentionally tried to screw us over?

    Think about it…

  14. Anonymous

    The obvious solution to the problem would be to change up to your credit limit and then immediately pay it down so that your credit report shows a max balance of $1000 but a current balance of $450.

    [sarcasm]It shouldn’t be difficult for most people to charge up to the limit.[/sarcasm]

  15. Anonymous

    MoneyNing – Are you sure about that? I’ve used Capital One while traveling and they charge the interbank rate, which is the rate that banks charge each other and is usually the best rate available. They even waived the usually 1% MC/Visa surcharge. On top of that, I got 1% cash back.

    I still like to use cash at times since it’s better to haggle with 🙂

  16. Anonymous

    I know everyone talks about how valuable Capital One’s card is for purchases outside of US. However, they have the worst conversion rates to begin with so why not get some cash and use that instead of your credit card? You don’t get the reward points obviously but it should still be better than using the credit card.

  17. Anonymous

    Good to hear that…now if I can get them to stop sending me access checks every 3 days even though I have opted out, called them, removed myself from mailing lists, etc…

  18. Anonymous

    The credit limit thing might now seem like a huge problem to most, but they are hurting everyone by not reporting the limits. The more limit you have, usually the better your score will be, if you’re not maxing it out, of course. I very happy to hear that Cap One finally came to their senses.

  19. Anonymous

    I don’t regularly use my Capital One card, but it has one valuable feature: “No fees on purchases made outside of the United States”. My Visa charges several bucks for each transaction: When we travel through Canada, using this card for all our purchases saves us $50-$100.

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