capital one classic card problems

sarahjagjag

Hi all,

Just recently we applied for capital one classic credit card due to having no credit history well so we thought we had no credit history.

Well we was accepted and was given £100 credit limit which is ok has we only needed it to increase our credit rating for a mortage in the future.

Problem been we have just found out we have the opposite to no credit rating due to virgin who have made the rating brilliant we have been with virgin 3 years and this is on our credit file and shows a good payment record.

we also thought we wasnt on the electrol roll we are and we have a overdraft with halifax and was given thier ultimate reward currount account without a problem.

so basically im now wondering if we would of been accepted for capital ones low apr cards which you have to have good credit for.

How would i find out would capital one give an option to upgrade to a low apr card or are we stuck with their classic card???

The bank stated to us we have the opposite to bad credit infact we could loan from them if we wanted too we said NO TAR where wanting to buy our home thats it nothing else.

Im now scared that this classic card is gona do more harm than good has wont it be seen by a mortgage lender has not very high scoring having a high apr?

please any advice will do

we should of checked our credit status i know before applying but we never assumed it would have any history or a good rating. it wasnt untill halifax told us and then we looked on equifax and was overjoyed that it was good. and halifax is offering a credit card now which is another problem we dont want to be seen has having too much credit. nice mess.

Thanks sarah

NickX

Having the Capital One Classic won't do any harm to your Credit Rating as long as you pay in time.

Best advice is to pay in full every month as the APR will likely be on the high side. If you do this it will actually improve your Credit Rating.

As you have found out that your Credit Rating is better than you thought, why not apply for another mainstream card and if you get accepted then close down the Capital One Classic.

Its good news really as you are actually better rated than you thought you were :beer:

owitemisermusa

NickX wrote: »

Having the Capital One Classic won't do any harm to your Credit Rating as long as you pay in time.

Best advice is to pay in full every month as the APR will likely be on the high side. If you do this it will actually improve your Credit Rating.

As you have found out that your Credit Rating is better than you thought, why not apply for another mainstream card and if you get accepted then close down the Capital One Classic.

Its good news really as you are actually better rated than you thought you were :beer:

What about making just the minimum payment each month - does that affect your credit rating?
For example, I can pay off the £38 purchase but the interest is 67p so I thought pay them some interest (not used card for a long time) to make yourself look good and 'improve' rating.

Bad choice?

relay

Making only minimum payments wont do your credit rating any favours in the long run.

jonesMUFCforever

Bad choice?

Yes for you. NEVER ever pay any interest unless you absolutely have to.

Pay in full and on time - that is all you need to do to ''improve'' your credit rating.

NickX

owitemisermusa wrote: »

What about making just the minimum payment each month - does that affect your credit rating?
For example, I can pay off the £38 purchase but the interest is 67p so I thought pay them some interest (not used card for a long time) to make yourself look good and 'improve' rating.

Bad choice?

It doesn't make any difference to your Credit Rating whether you pay off the minimum or pay off in full. On your Credit Report the crucial thing is that you pay at least the minimum on time, that is all.

There is some reports of people who pay off in full every month having their cards closed (161,000 Egg customers), mainly because they were not making enough profit for the company, but this is not really anything to do with their Credit Ratings.

IMO if you can avoid paying them interest, then I would do so, its not worth paying them interest just to make you a more attractive customer to them.

PROLIANT

Also a lender who checks your credit file cannot tell the difference between a platinum card and a basic card, just pay on time and dont go over your limit and you will be ok.

sarahjagjag

Thank you for the replys much apriciated.

I know capital one will up my credit limit in good time but im wanting them to upgrade to a better account if thats something they would do automatic???

would they know looking at thier computers that i am infact able to have a platinum or the lower apr cards they offer??

I just wondered if they did what banks do in upgrading accounts has a customer progressess rather than giving a 2k limit on thier classic id rather have 2k on thier low apr card.

Sarah

bethanyrayne

Capital One requires that you close your existing account before applying for a new one.

Please allow 6 weeks after closing before reapplying otherwise you will get declined because their systems think you already have an account.

OllyM

You obviously don't have a fantastic credit rating if they only gave you a £100 limit on their classic card, that's the lowest I've heard of.

They won't let you switch products without cancelling your old card and then re-applying (with no guarantee you'll be accepted either).