If you have a credit card with Capital One, chances are your credit score is lower than it would be with a different credit card. This is because Capital One (and possibly other companies) don’t report your true credit limit.
Part of the calculation for your credit score is your ratio of used credit to credit available. $100 used out of $10,000 (a ratio of 1%) available is good. Rather than your real credit limit, Capital One report your highest credit usage. So if $200 is the highest amount of credit you’ve used, then your ratio is $100 out of $200 (a ratio of 50%), which is not nearly as good and can hurt your credit score.
You won’t have any luck trying to get Capital One to report your true credit limit.
Here’s a reminder: The only website for getting your free credit report is annualcreditreport.com. If you go to any other website, you run the risk of being sold something you can get for free. On the other hand, your true FICO score can only be purchased from MyFICO. Don’t accept any imitations.
Updated February 6, 2012 and originally published September 15, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
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{ 33 comments… read them below or add one }
I hated Capital One in college. They didn’t like me checking my balance all the time. As soon as I got that letter, I transferred the balance and closed the card. I absolutely will not do business with them anymore.
Flexo-Get on Capital One’s butt and have em change their policy :) That is strange of them to continue this practice!
Flexo, this is outrageous. I have a Capital One card I got for the 0% intro APR, but now regret having done this. Can’t we lobby to get this changed? Maybe someone should bring in Clark Howard or one of the big guns.
Glad you bring this up. I’ve had some issues with Chase because of this. I needed to have some in depth conversations with some pf bloggers for advice.
-JW
IS this true for Chase Bank customers as well? Which other banks do this kinda of business?
I cancelled two Capital One cards in 2003. Despite having a promotion block on my credit reports, my Transunion and Experian reports show that Capital One has been checking them every 2 to 4 months. It makes me wonder, despite the block, what kind of information they are able to obtain. Every three weeks, I receive an advertisment in the mail asking me to sign up again.
I always mail the empty envelopes back. It’s getting funny because now they are printing my name directly on the envelopes in an attempt to discourage people from mailing back their prepaid mailers, so I just cut my name out and send it in.
Does anyone happen to know how to get off of their mailing list? The phone numbers included only go to automated lines.
Hi! Call capital one at 1800-955-7070 and ask them to delete your name on their preferences to you would stop getting mails/ phone calls from them.
I opened 3 accounts with Capital One several years ago( I wish I had not) and I have been paying regularly to this writing. I closed them and they keep open them and they keep increasing the interest rates as high as 29%. I am going to close them again and record the conversation for quality purposes and if they ever open them again I will send the recording message to the media just like it hapenned to AOL. Enough is enough Capital One needs to quit taking advantage of the poor people. I quit watching the TV programs that they advertise on and in hopes that the ones that are having such unethical and possibly illegal transactions with Capital One to do the same.
i want to have capital one visa card. would you know if there is one here in the philippines and where it can be located.
thank you!
Capital One has many products. They may step in with a 0% promotion after an individual files a Chapter 7 discharge of debts and are taking a higher risk while charging no annual fee and allowing generous credit lines when other banks demand all sorts of fees. That said, it is quite frustrating that Capital One does not clearly (not in their terms and conditions) the difference between their card and most others in terms of credit issues like this, as it is a rare industry practice.
Go to the web site below if you want to stop getting all that junk mail from prescreened credit card offers and insurance offers. It explains how companies get your address and how you can limit some of the junk mail that gets sent to you. I did this last summer and the volumns of junk mail I receive has been greatly reduced.
I believe it also has a phone number you can call to opt out of unwanted phone solicitations.
For those of you who have or will have college students, get their names on the list to reduce their temptation to get credit cards for so called “emergencies”. Like weekend vacations etc.
You’ll be on the opt out list for 5 years and then you’ll have to renew.
http://www.ftc.gov/bcp/conline/pubs/credit/prescreen.shtm
Those who are 18 and receiving offers in the mail should take advantage of ONE. I say this because I have a friend who never took any offer and now six years later is having trouble getting anyone to extend her credit. She has no history…
I just checked my Credit Report..what’s up with Capital One reporting 44 months of payments?? All of my other debtors only report up to 23 months! So any mistakes I made with Capital One..such as late payments are not going to clear up for 44 MONTHS!!!! And they do an inquiry EVERY month??!!! Is that really necessary?? I plan on calling them and giving them a piece of my mind..scam artist!!
i have 4 Cap One accounts and they are my oldest accounts as well. For a long time they did not show my credit limit, but I did just about max them all out at one time or another which established a high balance….although I am not sure that is figured in the calculation when the FICO score figures the ratio. HOWEVER, all 4 card now show a Credit Limit on all 3 credit reports. Not sure why they are doing that for me and not you. Maybe you need to ask them? At one time I threatened to close my accounts because of it. Maybe that is when they changed it? Not sure as I only pulled my credit reports about once a year.
Capitol One sent me a credit card in the mail in 2002 and the card was stolen. I reported to customer service and guess what? I received a court order 5/2008 to go to court because they are sueing me for over 1000.00 for that credit card. I found out that the card was used in the amount of 230.00. No activity but that one in 2002. All the other charges are from over the limit, late fees and etc. How can an unsecured credit card company keep an account open for 6 years accumlating fees, no activity, no attempt to notify me, and then sue me after 6 years for a card that was reported stolen? They themselves are thieves for trying to steal or collect for a card that I never got.Can someone help me please. This is not real!!I am still in shock. Mind you, I am only 23 years old, so when the card was sent I was 17. What the H… is going on?
Rather than try to change Capitol’s behavior or policies just cancel the card and move on to another one. It doesn’t matter which one, they are all greedy predators who take advantage of everyone they can, ESPECIALLY the poor. Let Capitol go out of business, which is what they deserve.
When you get “free offers” for more cards, do send them back in the prepaid envelopes and leave your name on them, just write over the application with a black felt marker, “No Thanks!!!” They still won’t give up, but at least you send them their trash back and they continue to pay the postage which keeps the post office functioning and ultimately keeps mailing costs down for the rest of us.
If you file bankruptcy, you will receive MORE offers because credit card companies know that if someone who cannot handle credit and gets into trouble will – 99% of the time – do it again. However, this time, you cannot declare bankruptcy again for another 7 years. So, during that time, they will pile on the $39 late fees, overlimit fees, 29% interest, etc. AND put liens against your house and car and garnishee your wages. In short, you will become their SLAVE. They love you! You won’t live long enough to keep up with the fees, let alone any principal. Stop being a victim, pay cash and don’t spend money that you don’t have.
I had three Capital One cards. I had them for about five years (Opened my first one when I was 18). I decided that I did not need three anymore so I called Customer Service and asked if she could consolidate all of my credit limits onto one card (I used my oldest card for credit aging purposes). Everything was fine until I decided to purchase a car. I understand that you should not use more than 30% of your credit limit and I have been living by that practice since opening the cards, but the same happened to me. My highest dollar amount ever charged was 600.00. My total credit limit at that time was 8500.00. When I went to purchase the auto, I was told my interest rate was going to be high because of my score. The Finance Manager was kind enough to go over my report with me. Well, I only had one account, Capital One. The problem was that my current balance was at 300.00 and with the highest amount used was 600.00, I was showing 50% credit usage! I told the Finance Manager what the credit limit was and he suggested two things: First, Capital One is a sub-prime lender. He suggested opening another card with a major bank such as National City Bank or Chase Bank. According to him, lenders look more favorably at someone who has bankcards with prime lenders. Second, he suggested I send in my Capital One statement to all three credit reporting agencies and request that my credit limit be noted (Since you are sending in a copy of your statement, it makes it very difficult for Capital One to dispute your claim). Here is the impact Capital One had on my score. When I went in to lease the auto, my score was at a 615 (Keep in mind I only had one credit card for five years with no late pays AND I don’t ever apply for credit so there werer no inquiries). When the credit reporting agencies made the change, my score shot up to 687. Huge difference! I went back and leased the car I wanted at the payment I was looking for. I still have my Capital One credit card since it is my oldest account. I normally charge a tank of gas a month and pay it off in order to keep it reporting. I did go and apply for a Chase Platinum Visa card. I received it with a 15K credit line. I seriously don’t think that would have happened had I not taken the Finance Manager’s advice. Today, I have a Chase card, my Capital One card, an auto lease, and a mortgage. I recently checked my scores and they are: 743, 751, and 748. So, keep on top of those creditors. The only way you will keep your score is by staying on top of them!
Capital One needs to be stopped. People need to file class action law suits (strength in numbers :) and please report them to all the qualified agencys that can help you. Your attorney general, Better Business Bureau, Fair Trade Commision, are some for starters.
It’s a shame that they are doing things that are totally UNETHICAL and ILLEGAL!!!
Write your congressman also. This is the WORSE company out there, in my opinion. STAY AWAY FROM THESE VULTURES.
Nowadays, most credit card companies are simply loan sharks. Don’t expect Congress to bail you out, because big banks have powerful lobbies that provide the funds that allow professional politicians to be re-elected.
When banks are issuing credit cards to college students that don’t have a job, or to homeless people, you should know that something is wrong. However, this has been going on for so long now, that millions of people don’t see the problem.
Perhaps people should consider getting by without a credit card. After all, credit cards only were invented in 1950. In that year, the US was the world’s premier industrial power and people used ‘layaway plans’ to buy stuff without paying interest.
Flexo,
Do you know this to be true in all cases, or just in some cases? On my credit report, I see all three for Capital one: Credit Limit, High Balance, and Current Balance. If all three show up, does that mean they are reporting it correctly? Also, any idea if the new credit card laws will require companies like Capital One and American Express to report your true limit?
Thanks
Hello,
I just opened up a Capital One Credit card. About 2 years ago I was laid off and was under water with debt. I even experienced a foreclosure. I thought that this would be a good way to rebuild my credit. I am a little nervous after reading your comments. Can someone offer any advice? My credit score is not really high enough to get a traditional card from my bank. Should stay with Capital one to build positive history and then swicth in about a year or so?
Thanks
No, you’re better off with a respectable credit card (anything else other than Capital One). Even HSBC, Discover, and American Express will do you good. There are Clear Rewards- American Express, and that’s always been wonderful for me. Never had a problem. You can pay over time, or pay monthly and they won’t bother you at all.
DO NOT LISTEN TO ANNA. YES IT IS A GOOD CARD.
DO THIS.. charge a SMALL amount.. less than 10% of your card maximum. DO NOT USE IT AGAIN for a month or so.. Charge some gas .. Continue to pay the bill off (online) as fast as you can. Within a couple months your FICO (the REAL score) WILL go up.
Capital One will not consider you for increasing your credit limit until after 5 months. Sometimes we need to make purchases that are beyond $500. That is the credit limit I got. I’ve never had a credit limit so low before, especially since I never missed a payment, and actually pay as soon as I get the bill. I have a card with American Express and HSBC with a much higher credit limit. #Capitalone is lame and the worst credit card company out there!
I am trying to build my credit i only have a personal line w/my credit union of 1000 which is maxxed but i do pay in full every month have had it for 6 months never late. but was denied a citibank card what score is needed to get a good unsecured card?
Quit playing around with this card and get it paid off!! Give up SOMETHING .. whatever it takes but PAY THE THING OFF! The Interest is killing you. Pay EXTRA .. as much as you possibly can. So, with a maxed out card from your bank.. WHY ARE YOU GOING FOR ANOTHER? Do you ENJOY MISERY? BE FINANCIALLY RESPONSIBLE! This is why the US Economy is in the tank.. we are so in debt up to our eyeballs but they want to keep spending MORE and more.. DO NOT be like the irresponsible idiots in DC. GOOD LUCK!
You are both right and wrong. Capital One IS a GOOD card to get, often its the ONLY one people trying to rebuild credit can get. Just because its from them does NOT mean its bad. However, you ARE correct that if you are over 10% of your available credit limit – it WILL hurt your credit.
IF you are trying to repair your credit score..DO NOT CARRY A BALANCE ON ANY “REVOLVING” credit line. Charge something small once every 3 months or so and pay it off.. KEEP IT BELOW 10% of your max! The old addage that you should have a ongoing balance is BAD BAD BAD.
SO, if you want to repair your credit and have none or bad credit.. Get a capital one platinum with a $200 credit limit. Go get a tank of gas.. Then PAY IT OFF BEFORE THE STATEMENT DATE ONLINE! a month or so, charge a hamburger.. PAY IT OFF.. Your score can go up as much as 25 points just doing this.
Capital One has hurt my credit score in another way.
I didn’t know about Capital One’s reputation and got a card from them nearly two years ago. I never expected that the limit on the card would start at $300! This limit is 1/10th of my lowest limit on any other card.
My credit score took a dive and when I looked at the explanation, it stated that it was because I had “cards with low credit limits.” And this is not connected to the ratio of used credit. I do not carry balances on any cards. Since I have a card with a low limit, “it looks like creditors are hesitant to trust you with higher credit limits.”
I talked to a rep a Cap One about it and she said that their cards were for people trying to build their credit and that their customers were happy to have the lower limits.
Are there any cards out there for poor folks trying to re-establish credit that will not force them into poverty or suicide?
You might want to look at these secured credit cards or these credit cards for bad credit. There are fees, but that’s the price of rebuilding your credit with a credit card.
No offense intended because I understand how complicated the system can seem, but does anybody actually look at their credit report before adding to the rabble of an incorrect article? My Capital One cc is reporting the proper credit limit on both TransUnion and Experian. I haven’t checked Equifax since adding the card, and won’t for another three months or so, but I have a feeling it’s going to be the exact same with them.
horrible card ive had 2 cards for 2yrs and in march one of my cards just fell off my credit report totally vanished it made my credit score dive 57 points ive been fighting with capitolone to put it backon since and they keep telling me 90 days then my other card they stopped reporting my balances and payments to the 3 credit companies as of February what the HELL how do you fix this???
Capital One is a bunch of liars. They offer no annual fee cards then lo and behold start charging an annual fee. When I called and asked why they said they offered road side assistance. When I said I had AAA already I was asked “is it free?” No it isnt, and neither is yours at $40/year annual fee. I ended up closing my card because of it, and then was refunded the fee AFTER closing. Ridiculous policy to say no fee then charge one. Now capital one has purchased HSBC, and I have a card with them. So now I am going to have to cancel yet another card, and take another hit on my credit because I know for sure they are a terrible company. Rot in hades, capital one.