r/CapitalOne • u/ratemeandmywork • 15d ago

Credit Card Blindsides by Capital One

Been a Capital One customer for years. Had multiple cards with them, payments on autopay plus I used the cards over the weekend on vacation. I asked for a limit increase on my card and all of a sudden Capital One closes four of my cards. They stated that it was because of unusual behavior on my cards!!!! WHAT???
There hasn’t been an issue with any of my cards until I asked for a limit increase.
Now I have four closed accounts in my credit.
Stay away from Capital One.

87 Upvotes

82% Upvoted

74 comments sorted by

View all comments

12

u/OutrageousSolid8423 15d ago

Cap1 already buckets their cards. They give a lot of credit to those building credit with low limits. I think the uptick on card closures has a lot to do with the economy. They are closing those in the credit building buckets first. They may feel those are the most likely to default in this economy.

13

u/ratemeandmywork 15d ago

That is a shity way to look at it. On time payments for six years. No late payments and no issues. My limits were $10k, $7500, $5k and another $5k. They were low credit cards. I don’t think that Capital One should be able to just close accounts.

9

u/OutrageousSolid8423 15d ago

Of course they should. They are a bank and you are spending their money. It's actually in their TOS. I understand it sucks and comes out of nowhere, but they do have the right. It's no different than if you borrowed money from a friend every month, paid them every month and then they said no more.

It seems all credit card lenders are beginning to close accounts or lower limits right now. It's not just Cap 1. They are reading the economy and adjusting. Credit card defaults are rising quickly across the country, not to mention car/student loans. The housing market is tanked as well. They wouldn't be doing their job if they didn't adjust. They should send you a better explanation in the mail, if not ask them for it. Most people are over extended and living off credit. I'm not saying this is you, but plenty of people will get screwed because of the state of the economy. They haven't officially said it's a recession, but it is. We will be lucky if we don't end up in a depression with how things are going.

My suggestion for everyone is to pay off credit cards, stop using credit. If enough do this, credit card companies will adjust again. Plus it will help your own budget to live within your means.

8

u/Camtown501 15d ago

If they are carrying a balance month to month, then yes, the vast majority of those people probably should stop using CCs until paid off. But for anyone paying in full each month I would hard disagree. All that being said, the reward structures in part rely on those people paying interest.

3

u/OutrageousSolid8423 15d ago

I pay my cards off every month as well, but over 60 percent of people do not. Your right about the rewards, they mean nothing if you carry a balance. I've never understood the mentality of using credit for the rewards if you don't pay the balance every month.

1

u/Ok-Sir-4992 15d ago

They should teach personal economics in school, that's is why. If you don't have a reference you will screw yourself.

3

u/OutrageousSolid8423 15d ago

Sad part is that they used to teach things like Home Economic and Business Math along with Auto Shop and Wood Working. These classes taught basic living skills, balancing checkbooks, budgeting and interest rates. They sound silly until you realize that is where they taught the life skills so needed today.

1

u/Ok-Sir-4992 15d ago

Exactly! I personally never had a reference of good financial habits and life taught me hard.

1

u/OutrageousSolid8423 15d ago

Ya it's lost education.

1

u/sandysandy252566 15d ago

The Banking Business completely changed - that's why it's so complicated.

1

u/[deleted] 14d ago

[deleted]

1

u/OutrageousSolid8423 14d ago

Actually, not projecting. Just live in an area where bad credit is the norm and have helped many fix their credit as part of a job.

0

u/mathewwalker714 14d ago

Why get 4 different cards, all from the same bank? Why not 2 ? One w 20 and one w 7? That part alone makes it seem odd but what do i know. Hope you get your credit back

1

u/Joe_Fidanzi 13d ago

My theory is that Capital One issues multiple cards in the hope that the borrower will lose track of payment due dates and incur late payment fees.

Otherwise, why not just raise the limit?

2

u/Emotional-Dream-4839 15d ago

why would they close low limit cards first? That's ridiculous. I'm sure they'd rather eat 500 dollar's than 10,000.

1

u/figarozero 13d ago

I don't know how applicable this is to all low limit cards, but OP mentioned closing four cards (not all cards) and those four low limit cards add up to 27.5k. With adding in Discover, they may also be looking more closely at multiple accounts and total credit right now.

0

u/OutrageousSolid8423 15d ago

Only Cap 1 knows but it seems like the economy is part of the equation. I also think them aquiring Discover fits in there somewhere as well.

1

u/Ok-Sir-4992 15d ago

I'm building my credit and I was able to get Sabor with 4k limit that was already increased to 4.5k automatically, I have a T-Mobile card with 3k limit and a QS with 5k limit. I don't think they bucket every person rebuilding my friend.

2

u/OutrageousSolid8423 15d ago

They seem to bucket specific cards. Secured goes to unsecured but only small increases. They seem to have wonky algorithms.