I would just like to say... Capital One is evil!

[Punkrulz]

Hey guys,

Just here to rant... something I don't do on the message boards much at all. My first credit card was with Capital One. They were the first people to offer me credit, even with a $300 balance (which later was topped off at $400), and a 20% some odd interest rate. Kind of high I know, however I needed to build credit, so it was a start.

I've been very diligent in making my payments, if I've ever been late it would only be by a few payments. Previously I've had to call them once and wanted to talk to a representative, it took me 30 minutes to figure out how! They utilize an automated system, and no options in there allow you to talk to a rep. The only way I was able to talk to someone was by going to cancel the card and it automatically canceled it, then sent me to a rep!

I had a fight with them the other day. I've heard of companies before either lowering the interest rate of the card, or removing the $$$ in interest entirely, making the person only pay the actual cost of the products that was purchased. Again after taking 30 minutes to find out how to speak to a rep (I was able to do so by going to "Change address"), I spent another 45 minutes wasting my time. The first rep was better than the supervisor. He offered to submit, on my behalf, a request to lower my interest rate (which now is 28.75%.) I'm swimming in interest rate charges.

I constantly was asking him, of the $400 I owe (which I've owed $400 since like 2 years), how much of that $400 is purchases, and how much of the rest of it is $$$ tacked on because of the interest. He wasn't able to answer that, and actually kept diverting the question I was asking him. I asked to speak to a supervisor, who unfortunately I got very frustrated with. At the end of our conversation, they told me here's what we can do for you. If you pay the $445 that you owe on the card, right here, right now over the phone, we will WAIVE the "over the phone" fee!!!

I had to make sure she understood where I was coming from. You're telling me, if I pay you $445 right now, you'll save me a $5 fee? Yes! You understand, that if I had $445 to just hand you, I would have done it a long time ago and saved myself the interest, right? Yes, we understand sir. Good, you understand!!! So you also understand that I am not paying you $445 right now right? I told her what I'll do. As soon as I pay off my balance, I'm canceling my account, you will lose my business forever, and I will never recommend you to anyone. *Click*

Cliff notes:
1) Can't talk to anyone
2) Super high percentages
3) Unwilling to help
4) Willing to waive $5 by giving them $445

 

[LordOfLA]

I didn't know people had capital one cards. THey are extortionate.

 

[Johnny]

I had a similar experience with Capital one. They claim to be the no hassle card, but are the biggest hassle out there. I had three cards with them, two personal and one business; I paid them all off before I canceled them, as I know people who canceled the card and didn't pay them off; they were given no options, then sent directly to a collection agency, which posted a credit card charge off on their credit. Of course their score dropped about 50 points because of it.

As far as speaking to a rep with the automated system. All you usually have to do is just push 0. I tell every place I talk to that has those things how much I despise them - and I always push 0, not caring where it takes me.

 

[j79zlr]

Uh, you can't be upset with them since they are only doing what's in the card agreement. You said you were only late on a few payments. You shouldn't be late on any. Well that is why your interest rate is where it is at and why they won't waive your interest charges. You have to be responsible with credit or else it can really hurt you.

 

[fitz]

had to say it, but pretty much any credit card company will treat you the same way..

 

[American Zombie]

Almost all credit cards have a clause that if you are late on even one payment they can up your rates to the highest allowed. It is in the fine print which some do not read.

 

[Sazar]

I got one a while back only because they have a credit report thing that is pretty decent and comprehensive that comes to me every quarter.

Worth it for me

Also, if you have a credit card, don't put stuff on it you're going to have trouble paying off and READ THE FINE PRINT.

Also, if your rate is increased, you can still call the company and see if they can lower it for you.

If you are paying your stuff, they will typically allow it.

Alternatively, transfer the balance onto another card, cut it up and call it a day

 

[fitz]

BTW - a credit card company will almost never lower your interest rate (or increase your limit) if you are over your current limit.

 

[Punkrulz]

I had a similar experience with Capital one. They claim to be the no hassle card, but are the biggest hassle out there. I had three cards with them, two personal and one business; I paid them all off before I canceled them, as I know people who canceled the card and didn't pay them off; they were given no options, then sent directly to a collection agency, which posted a credit card charge off on their credit. Of course their score dropped about 50 points because of it.

As far as speaking to a rep with the automated system. All you usually have to do is just push 0. I tell every place I talk to that has those things how much I despise them - and I always push 0, not caring where it takes me.

0 doesn't even work for Capital One. I agree with your thinking, I typically hit 0 right off the bat to speak to a representative... but when dialing 0 on their automated menu, you're hit with a long pause and it then tells you that the option doesn't exist.

Also, I've tried being really responsible with my cards. I don't charge anything anymore. Initially they were used to build credit. Then they were used in emergencies. Then unfortunately I got comfortable using them a bit thinking I'd pay them off. But it got out of my control. I understand about the terms of the agreement but seriously other companies out there are at least willing to work with me and they're not, they just want to shaft me.

I think what I'm going to do now is maybe send $50/paycheck to Capital One, have it paid off in about 4 months, 5 probably because of interest... Cancel, Shred, be rid of them permanently.

 

[fitz]

Cancel, Shred, be rid of them permanently.

Yup.. cancel, shred.. [sarcasm]good plan - ruin your credit history/report/score even more than it already is.. [/sarcasm]

Word of advice, learn how credit scores work - one of the things you will learn is that (besides the negative of late payments) not having any credit also hurts. Part of your credit score is based on the history of credit (meaning the longer you keep the account open, the better) and the amount of outstanding debt in a revolving account (like a credit care) vs the amount of total credit you have (meaning having a high amount of credit available vs a low amount owed).

Canceling your only account will make your credit report/score worse. A better plan would be to just shred the card so you can charge anything to it and leave the account open.

 

[ming]

Had one with them years ago... same reason, first card i can get my hand on and to build a credit history.
everyone keeps telling me how bad they are, but i haven't really had any problems with them to be honest. the only thing that bugged me was the annual fee, but i won't complain about that coz they refunded the fee at the end of the yr.

 

[Johnny]

Yeah, canceling and shredding is the best way. It is true that you should have read the fine print. You will see all kinds of things in there that you do not agree with. As for interest rates; some of them will increase your interest to max if you are over the limit then lower it again once you are under the limit.

You will also find little things about grace periods. They say they will allow them "ONLY" if you pay the whole bill in full, from the previous month. So, if you pay the minimum every month, you do not have any grace periods. This is the point of paying a $35.00 late fee for going over the due date by a couple of days.

Also, look at the interest rate very closely, you will see that you are paying no less than 18%. If you are I want to know who you have ...

You will find that banks financial institutions make the bulk of heir money off credit cards. That is because of what I mentioned above.

A little side note: Remember that paying the minimum due will take you 15 years to pay a $1500.00 balance off.

 

[falconguard]

Citibank 11% had it for a long time, I have another at 14% But than I have pretty good credit with them.

 

[fitz]

Yeah, canceling and shredding is the best way.

Apparently you missed my whole diatribe on why cancelling the card is a BAD idea..

As for interest rates; some of them will increase your interest to max if you are over the limit then lower it again once you are under the limit.

All of them will do this.

Also, look at the interest rate very closely, you will see that you are paying no less than 18%. If you are I want to know who you have ...

Many banks have cards under 18% (mine are at 14% w/Citibank and another at 17% with Discover, which I hardly ever use). If you are paying over 18%, you either a) didn't do your homework, b) don't have any credit history, or c) Screwed up your credit already too far that you don't have any other option.

You will find that banks financial institutions make the bulk of heir money off credit cards. That is because of what I mentioned above.

Actually, banks make money off any loans they provide.. and this depends greatly on the bank and the focus of the bank. A local/smaller/regional bank will not run their own credit processing. The bank I work for is a smaller commerical bank and makes it's money off interest made on loans to companies.

 

[j79zlr]

Everyone one of my cards is less than 18%.

American Express Blue 13.24%
Citibank Mastercard 15.99%
Capitol One Visa 13.15%
Discover 12.99%

All of this is irrelevant since I pay them in full every month. As long as you manage your credit correctly, there is no reason it should be that high. The last time I checked my credit score it was over 800 though....

 

[kevman64]

Credit cards are evil. :devious:

 

[trainmaster77]

my credit score was 740's then i broke my neck and capital one was the worse asses there were. Even telling them ... MY NECK IS BROKEN ... one lady had the balls to say... thats not my problem ... is there someone you can borrow money from to pay this bill? I told that biatch to eff off... and ever since then ive had nothing good to say about capital one. Now after i finished with court and received abazillion dollars they wont stop sending me crap ..wont stop calling ..hell they even sent me checks to sign ... they want me to have their cc's again.

oddly enough my imperica score is below 500 now and fortunately i have the cash so it doesnt matter ... but to be a prick i usually pay my bills at the last possible second ..because i actually make more money on the interest sitting there longer than i would paying late.

This IS NOT how most people should manage credit though. Companies cannot charge humongous unreasonable rates for being late .. its generally something nominal. BUT ..when you have cc's .... they have almost every right to raise your rate to 35.99%.

There was a law in NY not so long ago that would restrict that ..make the max interest rate something like 19% ...but it didn't pass ... oddly enough ...even with NY democratic representation.

 

[Punkrulz]

Yup.. cancel, shred.. [sarcasm]good plan - ruin your credit history/report/score even more than it already is.. [/sarcasm]

Word of advice, learn how credit scores work - one of the things you will learn is that (besides the negative of late payments) not having any credit also hurts. Part of your credit score is based on the history of credit (meaning the longer you keep the account open, the better) and the amount of outstanding debt in a revolving account (like a credit care) vs the amount of total credit you have (meaning having a high amount of credit available vs a low amount owed).

Canceling your only account will make your credit report/score worse. A better plan would be to just shred the card so you can charge anything to it and leave the account open.

Fitz, the problems that I'm having with Capital One makes it not worth the suffering of keeping them as a Credit Card for me. I have other ways of building credit. I have two credit cards (one is a retail store) with lower interest that are building me credit. I also have a Car Loan that I am attempting to build credit with, which I know they help out tremendously. I have my own Cell phone account (though not sure if that helps with credit) and I also pay rent on an apartment (again, not sure about this one). Capital One's card that I had open for multiple years is not going to tear up my credit score, at least worse than it is already.

Also, I don't know how to get my credit score for free. Freecreditreport.com offered me the report, but the score was absent from all three of them... but I could PURCHASE my score for a nominal fee!!! Any other ideas? I am very curious to know what my score is presently... though isn't it a bad thing to actively check your score, because you're running a credit check on yourself?

 

[falconguard]

This is the one you want to get the credit report from all three
https://www.annualcreditreport.com/cra/index.jsp


If they tell you , you have to pay for the additional information then it is probably one of the company sites, TRW, Etc,.