Capital One Classic Procedure

Niteflyer

medw1974 wrote:

Hi Silvafox

I'm at exactly the same stage as you - I sent my agreement back to them last Friday so I expect to hear something in the next few days. The back of my letter also said N/A about the security deposit so fingers crossed.

Incidently what figure did it have as the cost of credit on the agreement? Mine says £29.86 - now they say that this is given as an example of how much you would pay in interest if you used all your credit limit in one go and pay it back in equal installments over 12 months.

They say that this is for illustration purposes only and is based on EITHER a £1500 limit OR your own limit if it is known at the time of printing the agreement.

Now given that that the APR is 29.8% does that mean my credit limit is only going to be £100.

No, the credit limit will be a MINIMUM of £200 and a max of £2500, if you need to pay a deposit it is unlikely that your limit will be much more than £200.

As far as the box on the back of the agreement saying N/A for deposits, mine also said that but I had to pay £200 deposit and received a £200 credit limit.

Pointless, you might think? but not really as you can't spend cash over the internet or phone, you can with a VISA though!

And these cards are great for rebuilding your credit, within 6-12 months if you keep your repayments up to date, they will probably offer you a higher credit limit and MAY offer to refund your £200 deposit

Hope this helps

Matt

YorkshireBoy

Niteflyer wrote:

...the credit limit will be a MINIMUM of £200...

You're correct Niteflyer, because the card is advertised on the Cap One website exactly as you have said. However, medw1974's credit agreement would seem to indicate that, "mathematically" at least, their credit limit has been set at £100.

Very strange indeed?

Niteflyer

Yeah, would agree:)

They only thing I can think of is that they are giving medw1974 an example of a interest rate on £100.

To be honest, I have never know Capital One to give less that £200.

Matt

YorkshireBoy

Niteflyer wrote:

They only thing I can think of is that they are giving medw1974 an example of a interest rate on £100.

To be honest, I have never know Capital One to give less that £200.

If they give a £200 limit but ask for a deposit of £100, then Capital One's 'exposure' is £100. Maybe they've used this exposure as the basis for their 'total charge for credit' calculation?

Niteflyer

The thing is, the security deposit is kept seperate and held in a non-interest account. It is ONLY used if the card holder defaults on a payment, so in effect, even if th eOP had a limit of £200 and paid a £100 deposit, he/she will still be charged ineterest on the £200.

I guess, we'll just have to wait and see, and hope the OP posts back when he gets his card

Matt

Silvafox

medw1974 wrote:

Hi Silvafox

I'm at exactly the same stage as you - I sent my agreement back to them last Friday so I expect to hear something in the next few days. The back of my letter also said N/A about the security deposit so fingers crossed.

Incidently what figure did it have as the cost of credit on the agreement? Mine says £29.86 - now they say that this is given as an example of how much you would pay in interest if you used all your credit limit in one go and pay it back in equal installments over 12 months.

They say that this is for illustration purposes only and is based on EITHER a £1500 limit OR your own limit if it is known at the time of printing the agreement.

Now given that that the APR is 29.8% does that mean my credit limit is only going to be £100.

Hi mate!

Oddly enough mine says £29.83.....3p different to yours. I'll update thread when I get more news.

ironingbored

Hi there. New to the forums but think they're great. I have just been through the same process as mentioned above and received my card a week ago with a £1000 limit. My credit agreement was exactly the same with n/a beside "security deposit". Think if they were going to ask you for the deposit they would've already. Hope this helps.

medw1974

Silvafox wrote:

Hi mate!

Oddly enough mine says £29.83.....3p different to yours. I'll update thread when I get more news.

Just double checked and yes mine actually says £29.83 too with an interest rate of 29.94%. I will keep you all informed when I find out what happens next.

Michael

medw1974

Hi again

Well I decided to take the plunge and give them a ring - very helpfull they are too.

They confirmed they received my credit agreement on Monday and sent a request off for the card to be printed and that it should be with me by 7th Nov.
They also said they didn't want a security deposit and that my limit would be £200.

So Silvafox, I'd definately recommend giving them a ring.

Still confused about the total charge for credit amount though.

Michael

Silvafox

medw1974 wrote:

Hi again

Well I decided to take the plunge and give them a ring - very helpfull they are too.

They confirmed they received my credit agreement on Monday and sent a request off for the card to be printed and that it should be with me by 7th Nov.
They also said they didn't want a security deposit and that my limit would be £200.

So Silvafox, I'd definately recommend giving them a ring.

Still confused about the total charge for credit amount though.

Michael

I bit the bullet too and just rang them. No deposit to pay and a £200 limit. Card should be with me in next 14 days! Well happy, at least I can start sorting my credit history/future now! I'm very surprised about this, I have to say, as I have plenty of adverse credit to my name and have been refused twice in the last 18 months by Capital One.....so I'm very happy to receive this card and limit.