Capital one credit card?

Question

I recieved another credit card offer from Capital One, I usally tear them up and throw them away. But this time I thought it would be a good idea to try it out because I want to get my credit started. So I went to the website and put in the reservation code and access code, then they said I was approved and my package would arrive in 9-10 business days. Now I've been reading around and alot of people say that they are not good. Now I want to cancel what I just did. Am I now locked into this card? Can and should I cancel as soon as it gets here? I do not have any other credit cards so I don't know if this will hurt my credit. Please Help!!

Answer 1

Even though Cap One is a large lender, they are not a prime lender.

The biggest problem with them is they refuse to report credit limits, they only report the high balance. By only reporting a high balance, it does hurt a persons scores since it makes the person look like they had utilized 100% of their credit limit.

The only way to make that work for you is if you charge a large amount - to drive up the high balance being reported, and then pay in full. And then try to stay below 30-50% (ideally below 30%) of the high balance after that. But that is a risky venture if a person cannot afford to pay a high balance back, or pay it back quickly.

Doing that will hurt your scores for a short time, but they should go back up fairly quickly after repayment.

If a person does that, they need to be sure not to charge the full credit limit. If they have fees attached to the card, it could push them overlimit,
if they don't pay in full and promptly - after the statement cuts or as soon as they receive the statement, there may be interest charges that would put them overlimit.
And the person should always wait until the statement cuts before paying, otherwise it would be a wasted effort.

It's a decision that you can think about before you cancel.
If there is "any" doubt in being able to handle a large charge payment - don't do it, cancel it.

You can always cancel a credit card from any company, even before you activate it. Just be sure that if you do cancel, to do it promptly, so you won't be charged any annual fee if it comes with fees, and to do it first by calling and then send a follow-up letter.

You should also try Orchard Bank and HSBC. They are not prime lenders either and many times do have yearly fees. But their yearly fees are not as high as a super subprime lender and they do report the credit limits.

When you apply for credit cards ALWAYS go directly to that credit card's website. Never use a clearinghouse website to apply on.
Stay away from the super subprimes like - Continental, First Premier, Imagine, Rewards 660, Total Visa and Tribute

Answer 2

Most banks will not give anyone an increase in credit limit until you have a proven record of timely payments and more then minimum. This usually takes a year at least. Once you have had it for a year, no harm in calling and requesting an increase. If your credit history is not too great you may not ever see an increase (Capital One is tight on giving out increases) I know, I have one account that I have used maybe 4 times in the past (going on 10 yrs now) and they never increased it. Good luck and hope this answers your question

Answer 3

I had my last credit card at Capital One and was very disappointed to find out that they cheat their customers. When I found out the truth about Capital One, I got rid of it as soon as possible. I found another much better credit company, this guide helped me a lot: http://mycreditcardfinder.net/findbestcreditcompany
I have been using it for 3 years now and I'm very satisfied with it. My credit has build up positive and most notably very quickly. (I always pay off the whole balance before the due date). And they also offer good customer service.

Have fun researching the best one for your needs

Jere

Answer 4

Yes, you can cancel the card once you get it. Capital one is a bad company to do business with, I first I didn't believe a credit card company would do cheat their customers. Well it happen to me and I got rid of it. No it will not hurt your credit. I have a suggest to you, when you cancel this card have proof that you did cancel. This will be your protection if Capital one try any under handing business with you.

So, don't worry just cancel the card and continue on. Try with other credit card company to rebuilt your credit. Good luck

Answer 5

Capital one has good credit cards usually with low interest rates. It does not look good to cancel a card as soon as you get it. Just keep the card and do not use it very often. Also make sure you pay the bill every month on time and it will all be fine.

Answer 6

Yes - you can cancel it - when you do so be sure to state in writing that the account is being closed at your request. We had Capital One for several years until our financial advisor told us it was one of the worst cards to have - No matter what your credit limit is - Cap 1 reports your balance as your limit - hence it appears to the credit bureaus that you always have their card maxed out even tho you don't. This will be much worse on your credit history than canceling it in good standing. Good Luck!

Answer 7

You are not locked into a credit card, so yes, you can cancel this one. I used to have a Capital One card as well, and I canceled it because they are a terrible company to do business with. I don't miss that credit card at all.

Answer 8

There are several issues with Capital One. The major problems are, their customer service is horrible and the second one is that they do not report your credit limit to the credit bureaus.
Example, they give you a $500 limit and you use $250, they will report your limit as $250. This will damage your credit score because instead of using 50% of your credit limit, it looks like you are using 100% of your credit limit. This kills your credit score.
If you are looking to build credit, try Orchard Bank

Answer 9

I've read a lot of negative comments as well... I had problem with them when I didn't get my statement and they charged me a late fee. But when I called, they removed the late fee. Since then, I haven't had problems w/ it.
What gets me wondering, though, is that the online statement hasn't been available for a few days. I normally get my statement online by the 6th and it's been almost a week and they still don't have it. Hopefully that'll change soon.
If you want to build your credit, use it for small stuff and keep your payments current, then you should be fine.

Answer 10

There is nothing wrong with Capital-One as long as you pay as agreed.

They are one of the largest banks in the world and report to all credit bureaus. Unless you plan on paying late, charging over your limit or some other dumb thing, you should have no problems with them.