Thinking of CapitalOne for first credit card, opinions?? (CapitalOne users please help)

[MiniThug]

Well, Im 19 years old and a college student and I have decided that its time for me to start responsibly building a credit history. That being said, I applied for a Discover Card and was denied. I looked around and Citibanks Dividend Platinum for Students card caught my eye. I had read that Citibank was a good card and fairly easy to get. I applied for that one. Got denied. Go figure. Im beginning to get discouraged. So, today in the mail, (along with my Citibank denial) came another pre approved CapitalOne offer. I get these things all the time. This one was for a CapitalOne Visa Platinum. Since I have no previous credit, I have no clue why they sent me a preapproval for a Platinum card. My question to you is, what CapitalOne card would be good to apply for? If you received one while you were a student, what did they start you off credit line wise? Was it fairly easy to acquire? Do you like the card? Also, does being turned down for a credit card badly hurt your credit rating? I have no credit rating at this moment but I am a student so I figure that should help. Thanks

 

[Zorro]

Even thought it says pre approved you may still get turned down for the offer with CapitalOne .

 

[StageLeft]

Don't try and apply for the platinum with capital one - you'll be denied. Apply for their low-end card - maybe even the secure card (requires a deposit).

Being denied isn't bad for credit but too many inquiries is. If this doesn't work this time give it a year and try again - of course it helps if you have an income. You could consider "inflating" your income on the application.

 

[MiniThug]

I understand that, thats why I was a little suprised that they would send somone with no credit an offer for a platinum card.

 

[Broncho]

They sent you the Platinum application because your school sold your name and information. The application is just the standard big frills offer they send out to try to get people to apply. I don't know how good they are or not, but if you apply you most likely won't get a Platinum card but you might get some lower level card. The thing is if you have no income it is harder to get. You might want to try going back and applying for Discover's student card, either online or by looking for an application somewhere on campus. They usually don't turn you down. Again, the real hitch is income, either that you earn or your parents give you. If you have none then you might not be able to get a card yet.

 

[CKDragon]

I started with the entry level Capital One card (with a $500 limit) 2 years ago this July and just last month they sent an offer asking if I wanted to upgrade to Capital One Gold. I did, and they sent the card. So, you could do that. If you're concerned about age, I just turned 20 yesterday.

Ah, I forgot - after one year they offered to raise my credit limit to $1500. My girlfriend actually took the same route I did but they started her out at a $300 limit and then later raised her to $1000. Not sure why, though.

CK

 

[MiniThug]

Well, I do have an income so that will help. Does CapitalOne have a student card or anything like that?

 

[recha]

I have a Capital One card. I just got it in a week ago and haven't had a chance to use it yet. My mom discourages me from using it and tells me to watch my $999 limit.

 

[SpearBritney]

I don't like CaptialOne personally. They charge a $60 annual fee. After learning I could reduce it, I called in and they reduced it to $30. That was a year ago and now they just charged their annual fee again - somehow it's back to $60, I'm gonna have to go and bitch at them for screwing me over.

Other than that, I think it's decent, but then again, I haven't tried any other cards. From what I heard about Discover, I think I'll apply for it. People with Discover, is there a catch to their seemingly good credit card deal offerings?

 

[RossMAN]

If you don't mind, can you list the reasons here why you were declined? They should be listed in both your Discover and CitiBank decline letters.

I'm not sure of your total financial situation but here's how I helped a friend out a few months ago. He just turned 20 and has had credit for 1.5 years now. He made some mistakes with his first CitiBank credit card, made a few late payments and he's had 1 late payment on a department store credit card. Recently he decided to "get serious" with his credit (all I could do was laugh my ass off which didn't help matters) since he wants to buy a new car in a few years and eventually get a new home loan. Of course he didn't listen to my advice. So he receives 3 pre-approved credit card offers in the mail which he replied to and accepted all 3 offers, 2 weeks later he received 3 decline letters ... Then he decides, hey maybe we should listen to Ross?

I strongly recommended that he apply for the Capital One Secured VISA credit card and he was APPROVED! This was a miracle since he only has a part time job, has a credit score of UNDER 600, a handful of late payments _AND_ inquiries galore.

This was towards the end of 2001. I recently spoke with him (he's an Anandtecher actually)and things are starting to look up for him credit wise. His credit score is now 620 (from 589), he hasn't applied for ANY new cc's, Capital One has increased his limit from $300 to $1,000 and if he follows my advice he should be approved for "regular" CitiBank, Chase, MBNA, First USA cc's in about a year.

Again, stop applying for any more cc's and get the Capital One secured cc!

 

[MiniThug]

With a secured card, how long would it take for me to build up enough credit to be approved for a normal credit card? Also, would the card ever become non-secured? Would they upgrade me to a regular card and allow me to have my deposit back after a certain amount of time?

 

[CKDragon]

Originally posted by: MiniThug
With a secured card, how long would it take for me to build up enough credit to be approved for a normal credit card? Also, would the card ever become non-secured? Would they upgrade me to a regular card and allow me to have my deposit back after a certain amount of time?

Well, I told you my story. Around Christmas time, probably at about 1.5 years, I was declined for the much-prized AmEx Blue which had the price match policty at the time. That's the only measuring stick I have.

CK

 

[RossMAN]

Excellent questions and I do hope you apply for a secured cc because sooner or later you're going to dig yourself a ditch with all these "inquiries" and eventually NO ONE will touch you with a 10 foot pole.

1) With a secured card, how long would it take for me to build up enough credit to be approved for a normal credit card?

Usually 1 year. They deposit the funds into a CD or savings account which earns interest for you, don't worry your money is safe as long as you 1) make your payments in a timely manner and 2) go with an FDIC insured bank (such as Capital One).

2) Also, would the card ever become non-secured?

Yes, after 1 year assuming you've used the card and made payments this would help your credit profile with that company. You would need to apply for a regular unsecured cc, if you are approved then you close the secured cc, they send you a check for your original deposit amount plus any interest you earned. If you are not approved then just keep the secured cc and try again in another 6 months or 1 year.

3) Would they upgrade me to a regular card and allow me to have my deposit back after a certain amount of time?

See #2, same answer.

 

[MiniThug]

DOes CapitalOne allow you to pay your monthly credit card bill online like Citibank or Discover? That would be a nice advantage.

 

[RossMAN]

Originally posted by: MiniThug
DOes CapitalOne allow you to pay your monthly credit card bill online like Citibank or Discover? That would be a nice advantage.

I think so, but let me verify ... I'll get back to you in a few minutes.

In the mean time here's some additional information regarding secured credit cards:
http://1abestloans.com/credit-card-faq.html

http://www.credit-cards-guide.com/secured.htm

List of secured cc's you can apply for

I hope you're not expecting a no annual fee or low APR credit card, usually people who apply for SECURED cc's have no or poor credit rating ... you gotta start somewhere, after 1 year of not applying for any credit, using your cc and making timely payments you should advance to the ranks of "normal people who use normal cc's with no annual fee and a decent APR".

 

[MiniThug]

RossMan, so you are saying that the CD or Savings account can be at any bank? It doesnt have to be at CapitalOne? Also, I looked at the application and I did not see anywhere on there where you enter the data for the deposit? Can this be done online?

 

[RossMAN]

Originally posted by: MiniThug
DOes CapitalOne allow you to pay your monthly credit card bill online like Citibank or Discover? That would be a nice advantage.

Yes. Look here http://www.capitalone.com/ towards the upper left.

 

[atrowe]

Crapital One is terrible. They sell your personal information to every telemarketer and scam artist under the sun. If you value your privacy at all, stay away from Capital One!

 

[MiniThug]

So even with an annual part time income of 10k to 12k a year, being a student at a major university, and having a checking and savings account you do not think I could pass for a Capital One Student Visa or an American Express Blue for Students card?

 

[RossMAN]

Originally posted by: MiniThug
RossMan, so you are saying that the CD or Savings account can be at any bank? It doesnt have to be at CapitalOne? Also, I looked at the application and I did not see anywhere on there where you enter the data for the deposit? Can this be done online?

Yes your savings account or CD has to be with the lender you are applying for a secured cc with, in this case it's Capital One. So your new savings account or CD has to be opened with Capital One. Your deposit can probably be taken directly out of your current checking account if you have a blank check with you.

I do not work for Capital One so I am not familiar with the application process. Why not call and ask them?

I gotta get back to work, good luck, if you do apply for a secured cc let us know if you were approved or not.

 

[Spudd]

Don't go with Capital One. They will screw you royally. The reason why they will increase your credit in such a short period of time (with on time payments) is because they want you to generate a lot of debt. It's a big story in the financial world right now about how such companies are basically committing usury on poor college kids, and want to collect on the huge interest that will come in every month on kids who can only pay the "minimum's" every month.

 

[murphy55d]

My first card was a Capital One w/ a $200 limit..got it when I was 18. I have since cancelled it, didn't like it all that much..next month I turn 20, I currently have an Amex Blue($2,000 limit) and a Discover Classic($3,500 limit) I also have a Visa bank/check card but I don't know what it's limit is. Actually I've never used it as a CC, but I am fairly sure it CAN be used as one. (can anyone confirm ?????)

 

[RossMAN]

Originally posted by: murphy55d
I also have a Visa bank/check card but I don't know what it's limit is. Actually I've never used it as a CC, but I am fairly sure it CAN be used as one. (can anyone confirm ?????)

Since it's a debit/check card it functions as 3 different cards in 1:
1) Check guarantee (seldomly used, this was popular in the 90's) card for whenever you physically write checks.
2) An ATM card, debit funds from your linked accounts, inquire on your balances and transfer funds between accounts.
3) A POS (point of sale) or debit/check card. Your limit is usually whatever your checking or savings account balance is. So if you have $250 in your checking account then that's all you can use your debit card for. Some people have a "line of credit" which is like a credit card but without the physical plastic card. This line of credit is usually $500 - $5,000 and is tied directly to your checking account in case you need to borrow some $ or you have an NSF (non sufficient funds - AKA Bounced check) check which comes through.

 

[murphy55d]

Originally posted by: RossMAN

Originally posted by: murphy55d
I also have a Visa bank/check card but I don't know what it's limit is. Actually I've never used it as a CC, but I am fairly sure it CAN be used as one. (can anyone confirm ?????)

Since it's a debit/check card it functions as 3 different cards in 1:
1) Check guarantee (seldomly used, this was popular in the 90's) card for whenever you physically write checks.
2) An ATM card, debit funds from your linked accounts, inquire on your balances and transfer funds between accounts.
3) A POS (point of sale) or debit/check card. Your limit is usually whatever your checking or savings account balance is. So if you have $250 in your checking account then that's all you can use your debit card for. Some people have a "line of credit" which is like a credit card but without the physical plastic card. This line of credit is usually $500 - $5,000 and is tied directly to your checking account in case you need to borrow some $ or you have an NSF (non sufficient funds - AKA Bounced check) check which comes through.

Thanks Ross.

 

[kami]

I'm 19 and got my first CC back in march, surprisingly it is an unsecure card with a $1000 limit. AFAIK, I had no previous credit history.
As for secured cards, I get about 2 offers per months for cards with a guaranteed credit line of $750..but you need to put a $75 deposit.

Is it better to just build up my one unsecure card's credit? I put quite a bit on it every month and it's always paid off weeks before the deadline. Or is it better to take these offers for the secure cards? Will that build up credit faster?

Oh yeah, how do I find out my credit score? :Q