Capital One - Low Credit Line

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GMFan

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I have had a Capital One CC for over 4 years. From quickly browsing through my bills in my filing cabinet, I have had a $1500 credit line since Jan 2008 (and perhaps earlier than that) and have not received an increase. I have gotten a denied transaction twice this year. I tried to put a few hundred dollars on it for new tires and they denied my card and I later found out my line of credit was used up as the check from the previous month hadn't yet cleared. No problem.... I used my debit card.

Tonight I called them up and the guy ran a request for a credit line increase over the phone and said I was denied and they would send me a letter in the mail stating their reason.

What gives? I have ALWAYS paid my CC bills in full each month, and I have paid back over $20,000 in student loans in just over a year. I figure my credit can't be bad.

This is my only credit card....however Chase, Discover, Am-Ex send me CC offers almost every week. I have a sizable stack of them.

Anyone else have experience with Capital One being stingy or am I being unreasonable in expecting a larger line of credit?

Kinda frustrating that I couldn't purchase a TV or something on my card without worrying about whether my last months check cleared and having to run to the ATM and carrying cash.

http://money.cnn.com/2008/09/25/pf/credit_limits/index.htm

I found the article above, and now I am worried I may have been doing the wrong thing by continually going close to my limit.
eek.gif
 
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Originally Posted By: GMFan
I figure my credit can't be bad.

Don't assume. Get full credit history reports from all the three reporting agencies if you haven't done it in a while.
 
I started out with a $200 credit line from them in 2003, now it's something like $18,500. I probably only charge $750-900 during an entire year on the card and my credit is kinda so-so. I'd suggest getting a credit report.
 
I agree with the other posters, but this info may help. While checking my Mastercard statement on line I noticed my issuing bank has a "blanket statement" on it's website that they are offically not considering "any" requests for credit line increases at this time. You may just be caught up in current bank policy and the decline may have nothing to do with your personal credit. Just a thought..
 
There are Capital one horror stories out there like charging $49 late payment fees for online payments that "accidentally" get lost etc. They seem to have more traps out there than most banks, and most banks have a lot of them.

I'd try a local bank or credit union, or get a credit line (overdraft protection) attached to your debit card you already have.

Capital One may be still trying to bail themselves out from their previous mess.
 
I just ran a credit check. My credit score is 745 (Very Good) according to Equifax.

I think I have discovered my problem...it says I have no employment history so perhaps they think I am unemployed. I sifted through the 20 CC applications I've received and I am entertaining a Discover or Chase rewards card. They are offer a decent 11% APR. Although I never run a debt on cards, I still want to reward the bank offering me the best APR.

When I submit my income/employment information on the application form that it will update my credit report listing me as working. Perhaps then I will get a respectable credit limit.

Thanks all for the help. Glad to know I am OK.

I always keep plenty of money in the bank for emergencies, but you never know when you need a CC to pay for that emergency car repair on the road...etc.
 
Originally Posted By: rshaw125
No carrying a balance more than 40% of your available credit line lowers your credit score.


When I get another card I plan to spread the balances out to avoid my high balance. The issue right now is my poor credit line which makes it difficult for me to avoid going over 40%. I basically put all my expenses on this card as I only use cash to purchase small things. I basically use my credit card for convenience...then just pay the bill in full when it comes.

I use to pay for gas in cash...but that gets real old fast. Driving to the ATM every 3 days gets annoying.
 
I use to have a bunch of credit cards, and not even use them, if I did it was a small purchase just to keep the card open. You can(could) really cook your credit score by doing so, because of the avaiable amount of credit to debt. Since the bubble break, credit cards and lenders have got much more savvy. I have had a bunch of credit card companies close my accounts because I did not use them enough and a couple of other cards reduced my line of credit, my Sears card stated that I never exceded $500 in over 7 years, so they reduced my line from $5000 to $1500. I am not sure if its because the card companies have to have the money to cover the possible debt or if they are just limiting their liability, but I know you could haggle with card companies, I could and threaten to close them, before they would bend, now they just close the account-no problem. They are catching on and after every buck. My advice to you, get every card you can, use them various ways, get gas cheaper on gas cards, collect points, use intros. Having one card, not just Capital one, any of them, I had alot of bad luck with Chase. Just realize, you are dealing with the devil.
 
Whatever CC you get set up yourself for online bill pay then get in there a couple days before the statement closes and pay it down, then your average monthly balance will be like $33 and it will improve your score.

Or if you pay through the mail, estimate what you've run up since then and over-pay.
 
op, you need to have around 3 active cards and charge NO MORE than half their limits,
go with amex and will be in a better place,
 
my credit card limit goes up by $2k every year, unsolicted increases by the bank. in the last 2 years, have never carried a debt.
 
If your limit gets real high it actually counts AGAINST you in securing some loans.

The bank will put it wherever you insist.

X2 on the Credit Union. They kick any banks [censored] badly on rates and deals.
 
Banks aren't as willing to hand out credit thesedays compared to 5 years ago. The whole economic/credit/housing collapse made all of the banks become more strict on what they give you for credit lines. For example, my AMEX card used to have an "online credit line increase request" link, but not anymore. Same with my Citibank card.
 
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