Capital One Visa Doesn't Deserve My Business

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Coffee
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Capital One Visa Doesn't Deserve My Business

Post by Coffee »

Hi, Guys:

I've got a Capital One Visa card for my one-person business (a corporation). Our gross monthly revenue is 5X the limit they gave us on the card when they initially issued it. I've been a perfect customer and I've never missed a payment in the 4 1/2 years I've had the card. They've never raised my limit on the card. I've requested they raise the limit, twice (once, two years ago... and once last week). Both times they've taken personal information from me, and then sent me a form letter that basically state: "We do not raise credit limits on request, but rather by periodic random review."

Now, because of my business advertising expenses and the low credit limit on the card, I'm having to send in payments two or three times a month, to avoid going over the limit. (I use the card for pretty much all of my business expenses and I don't like to let it get too close to the limit).

Because it's a business card, they made me personally vouch for it. I've got perfect credit and I own my house outright. I've had the business for 17 years, too.

So... here's my question: Who should I go to for a credit card with a higher limit? Is there a certain strategy to use?

Thanks,
Coffee.
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Kenkat
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Re: Capital One Visa Doesn't Deserve My Business

Post by Kenkat »

I'd just get another card or cards. Here's a simple list from doing a google search:

http://www.creditcards.com/business.php

Looks like Chase Ink or Simply Cash from Amex would be a couple to look into.
dickenjb
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Re: Capital One Visa Doesn't Deserve My Business

Post by dickenjb »

What is your limit? I just formed an LLC consulting business and I went to TD bank to open business checking and get a Visa card. They instantly approved me for a $23K credit line.
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Coffee
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Re: Capital One Visa Doesn't Deserve My Business

Post by Coffee »

Thanks, Ken.

It seems like most of these credit cards won't tell you what limit they'll give you, until after you've applied?
What I'm trying to avoid is having several different credit cards to manage.
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Coffee
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Re: Capital One Visa Doesn't Deserve My Business

Post by Coffee »

dickenjb wrote:What is your limit? I just formed an LLC consulting business and I went to TD bank to open business checking and get a Visa card. They instantly approved me for a $23K credit line.
The limit is $8k.

I have one other visa card (my personal card) that's with Chase and the limit is $50k. I've had it for years.
sport
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Re: Capital One Visa Doesn't Deserve My Business

Post by sport »

There is a business version of the Costco Amex card. IIRC, it pays rebates the same as the consumer version, except that the gasoline rebate is 4% instead of 3%.

Jeff
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Coffee
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Re: Capital One Visa Doesn't Deserve My Business

Post by Coffee »

jsl11 wrote:There is a business version of the Costco Amex card. IIRC, it pays rebates the same as the consumer version, except that the gasoline rebate is 4% instead of 3%.

Jeff
I've had one of those since 2008, actually. My limit is $3,000. I got it right after the financial crisis. I had an Advanta card, and that was when Advanta killed all 1 million of their card holders accounts.

I need something with at least a $20k limit.
sport
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Re: Capital One Visa Doesn't Deserve My Business

Post by sport »

Coffee wrote:
jsl11 wrote:There is a business version of the Costco Amex card. IIRC, it pays rebates the same as the consumer version, except that the gasoline rebate is 4% instead of 3%.

Jeff
I've had one of those since 2008, actually. My limit is $3,000. I got it right after the financial crisis. I had an Advanta card, and that was when Advanta killed all 1 million of their card holders accounts.

I need something with at least a $20k limit.
I would ask AMEX what they could do for you if you close the Capital One card. Perhaps they would work with you on that.

Jeff
chipmonk
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Re: Capital One Visa Doesn't Deserve My Business

Post by chipmonk »

Coffee wrote:So... here's my question: Who should I go to for a credit card with a higher limit? Is there a certain strategy to use?
Tell Capital One that, "Your card is a hassle for me to use and I'm going to take my business elsewhere if you make it convenient for me by raising my credit limit."

In my experience, telling credit card companies that you're going to cancel is an effective way to get their attention. If you're spending $20-25k per month, you're probably giving them $500-$1000 a month in interchange fees, minus whatever credit card rewards you're reaping (hopefully non-zero). It sounds like they'd be fools to ignore your ultimatum. If they do, start looking for a new card. I'm a fan of Nerdwallet for credit card reviews and comparisons, and they appear to have a good list of business credit cards too: http://www.nerdwallet.com/business-credit-cards
FlyOverState
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Re: Capital One Visa Doesn't Deserve My Business

Post by FlyOverState »

My wife went from being a W2 employee to strictly 1099 as an independent consultant a few years back and we went with the Costco / AMEX TrueEarnings Card. Good credit and all that and she was given a $20K credit limit from the start (much more than needed). We pay it off every month and the recent 2011 cash back award was nearly $700.

FOS
Thanks, | John | | FlyOverState
Easy Rhino
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Re: Capital One Visa Doesn't Deserve My Business

Post by Easy Rhino »

Capital One seems... just weird... and is often reluctant to raise limits on lots of cards.

It's not worth the hassle, get a different card. Heck, if you applied for another capital one biz card, you might get one with a bigger limit.
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soaring
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Re: Capital One Visa Doesn't Deserve My Business

Post by soaring »

Coffee wrote:
jsl11 wrote:There is a business version of the Costco Amex card. IIRC, it pays rebates the same as the consumer version, except that the gasoline rebate is 4% instead of 3%.

Jeff
I've had one of those since 2008, actually. My limit is $3,000. I got it right after the financial crisis. I had an Advanta card, and that was when Advanta killed all 1 million of their card holders accounts.

I need something with at least a $20k limit.
Call Amex and ask for an increase. 4-5 years ago we applied for a personal Amex card thru Costco and the limit was 10K without us asking. I'll bet with your perfect record they will raise it 10-15K more in a flash.
Desiderata
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PaddyMac
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Re: Capital One Visa Doesn't Deserve My Business

Post by PaddyMac »

I have a Capital One card, but we just use it for Medical. I don't like their online system.

Since you seem to do a lot online access (as do I), I can say that the Chase online payment system is the nicest I've found. It's well organized and clear. I have a Chase Amazon Business card that pays 3% for all Amazon purchases, and 1% for everything else. When I get 5000 points I ask for a $50 statement credit. They raise my credit limit regularly, but it was small to begin with. I would start with one other card and set up the Alerts to email you when the statement is due, when its 5 days from payment being due, and that way you won't miss a payment.
chaz
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Re: Capital One Visa Doesn't Deserve My Business

Post by chaz »

I use Chase Sapphire.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page
ilmartello
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Re: Capital One Visa Doesn't Deserve My Business

Post by ilmartello »

Are you paying off the balance and not accruing any finance charges?
If that's the case, and you have a high credit score, I'd check out AmEx and Chase.

You can check your credit score for free at creditkarma.com
saied45
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Re: Capital One Visa Doesn't Deserve My Business

Post by saied45 »

i dont have a business credit card with capital one but just a regular capital one card. i have asked them several times to raise my limit(because im slowly building credit) and they have refused. idk if i should go to another credit card company or just stay with capital one.
ilmartello
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Re: Capital One Visa Doesn't Deserve My Business

Post by ilmartello »

saied45 wrote:i dont have a business credit card with capital one but just a regular capital one card. i have asked them several times to raise my limit(because im slowly building credit) and they have refused. idk if i should go to another credit card company or just stay with capital one.

If you close a credit line that you've had for a long time, you're going to hurt your credit score. I don't think that's a good idea.
tonsofthorns
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Re: Capital One Visa Doesn't Deserve My Business

Post by tonsofthorns »

I have a couple of business cards and AMEX seems to be the most responsive to credit increases. In the past, I have placed a phone call and needed a $5K increase for a specific business purchase and they gave it too me immediately.

Two years ago, I switched my credit card that I use for my business to a personal Credit card, that the business reimburses to me. I use the Fidelity AMEX card that gives me 2% cash back on purchases. And since it is a personal card I keep the rewards. For me it is an easy non-taxable $1K.

If you decide to apply for a new card. Pay all of your credit card bills off the day before the billing cycle ends and the next month you will have a higher credit score because of your credit utilization. Thus, you will maximize the amount of credit that the card company will give you. If you go this route, do not cancel your existing card before you have the other one in hand. Better yet put the other card in a file and forget about it.

Good Luck.
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DiscoBunny1979
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Re: Capital One Visa Doesn't Deserve My Business

Post by DiscoBunny1979 »

When I called Capital One years ago to ask for a raise, the also told me that they don't raise the limit by asking and that they do "periodic" checks to determine useage and if a credit increase is due the customer based on their determination of need and ability to pay. But they also said to get around that, I could submit a new application of credit to try and obtain a higher credit card limit and therefore a credit inquiry would be incurred. I said no thanks, and hung up the phone.
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steadyeddy
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Re: Capital One Visa Doesn't Deserve My Business

Post by steadyeddy »

I had a Capital One business card automatically approved with a $20,000 despite having revenue far less than your own. It seems Capital One has a poorly thought out automated underwriting system and inflexible customer service to boot. While they currently meet my needs, I agree that they do not deserve your business.

In contrast to the perception of Amex as business friendly, I once asked for a small credit limit increase on an Amex for a specific purchase in 2009 and was turned down. I haven't used the card since. I'm a vindictive customer in that I'll make a lateral move in terms of product benefit just to punish a company for offending me. This offense generally comes from poor problem resolution rather than the initial problem.
potato
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Re: Capital One Visa Doesn't Deserve My Business

Post by potato »

In my experience, Capital One appears to be completely uninterested in your income. You can ask them for a credit increase, and they'll say yes or no (actually, I think more accurately, they just say no: they'll tell you when they're ready), but they don't even ask whether you're employed, let alone how much you make. I don't think this is normal; other card issuers always want to know income and appear to give big credit line increases based on changes in income even when the credit score is still about the same. (They never seem to ask for proof though, which makes me wonder whether they have some independent way of finding out.) I think it has to do with the particular kind of risk-modeling cleverness that Capital One tries to specialize in. You can go out on various specialized credit card forums and see the same story over and over again: Capital One was very helpful to so-and-so by extending some minuscule amount of credit, say $300, to somebody they didn't really know anything about other than their SSN, slowly escalating that to $1000, usually on their own initiative (i.e. without increase requests). But around the time where the aforementioned so-and-so was getting $5000 credit limits from random banks, Capital One still wouldn't budge past $1000, and so-and-so (who usually appears to see credit as some sort of birthright) is upset by this, as well as Cap One's more legitimately nasty practice of not notifying you if you overdraw your limit but instead silently hitting you with big overdraft fees.
travellight
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Re: Capital One Visa Doesn't Deserve My Business

Post by travellight »

I'm a vindictive customer in that I'll make a lateral move in terms of product benefit just to punish a company for offending me. This offense generally comes from poor problem resolution rather than the initial problem.
....and I hold these grudges forever, lol.
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