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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: capital one and credit reporting||Date: 6/15/2007 10:52 AM|
|Author: markissacs||Number: 254457 of 310999|
In a phone discussion with a supervisor at C1 the other day (when I was arguing about an unreported high limit card) she told me that a lot of Capital One's business is for cards with very low limits. Business cards for new businesses, and kiddie cards for young people on their very first card, etc. These cards normally have limits of $300 - $400 - $500 and C-1 feels that by reporting these low limits they would hurt the card holder's opportunity to get more substantial lines from other card companies later on.
Normally, when a C-1 card has been active and paid as agreed for a year or two, they run credit and find the highest limit card in the bureau reports, and then double it! That will be sent to the card holder as a pre-approved platinum card offer. It's there way of setting the credit hook and making sure you will have enough available to hang yourself with.
NB: The first "pre approved" high limit offer is NOT the one you want to snap up. Wait a few weeks for a 2nd or a 3rd one. These subsequent offers will carry a very low rate monthly, or a long term "0" rate balance transfer offer.
So... if you have a C-1 card with a low limit, pay it for a year or two. On time, and don't exceed your limit. Then watch the mail for a "pre-approved" offer from them. The first one will be at about 9% plus it will offer a limit twice the highest limit you presently have from any OTHER card vendor. So if your WAMU card is $6k, then your pre-approved C-1 offer will be about 12 grand. Don't take the first one. Wait for the 2nd one. It will have a lower rate and along term "zero" rate balance transfer feature. The third one will be a little better yet. They are spaced about 8 weeks apart or a little less - depending on how greedy they are at the time.
Enjoy and hold out for the low rate and long term balance transfer. Also, I'm told that a balance transfer request will get you a higher limit than the same application without it. Not one for one dollar, but about 50 to 75 cents per dollar of balance transfer will be added to your overall limit.
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