Capital One Credit Card Review

Posted On: November 1, 2005

NightStar
Posted: Tue Nov 11, 2003 8:50 am
Post subject: Capital One Credit Card Review

Figure while we are dealing with credit cards today and various issues, that we should address the major one of them all.

Oh yes, they are nice that they give credit easily then most any other creditor out there. But it is plain and simple they purposely hurt their customers to stay competitive!

They will never report your credit limit, only high credit and balance. So most of the time you credit report looks like you are maxed out on your credit!

So say you have a credit limit of $5,000 and you recently charge up the highest to $1,000 may be a month of two of paying and you have a recent balance of $800.

$5,000 Credit Limit
$1,000 High Balance
$ 800 Balance

$1,000 divided by $5,000 = 20% utilization
$ 800 divided by $1,000 = 80% utilization

So all that your credit report shows is the high balance of $1,000 the $5,000 is no where to be found, making you look like your maxed out just about.

Then you know what is going to happen when you do charge more then $1,000 it is going to make you look over the credit limit!

And you definitely don’t want your other creditors seeing that, for the change to jump - claim you are over extended and jack you interest rates with them!

**** We have discussed this one around and around and others actually came up with this, but here is what you do to fix this problem.

When first opening up an account with Capital One credit card, least this is my way, is to take a cash advance for all but $50 - $100 and before the grace period is up immediately pay back the balance, that way the credit report will show the High Balance close to your true credit limit and it won’t have the power to mess with you on the reporting.

Some have suggested making a large purchase, close to the credit limit - then returning item to store. That could least save you finance charges associated with cash advances,

Or if you can, get a balance transfer - payable to yourself, then immediately pay back.

This though, is how you use Capital One to get a fair shake on the credit reporting.