I didn't go for the secured card. I waited three months after i settled all my debts and applied.I recieved a letter in the mail i was accpeted for a $500.00 limit.The annual fee is $59.00 and 19.8%.I don't use the card much so the interest rate doesn't bother me.I recieved a letter six months later stating with one phone call my limit will be raised from $500.00 to $4500.00.I also stated to them that i would like my annual fee waived next time and my interest rate lowered and they replied that they review the accounts every six months and a note will be put in my account.

average_joe

When did you get your new Capital 1 card and what was the initial credit limit? Did you apply for a credit limit increase or was it automatic?

What is your APR and is there an annual fee? If there is an annual fee, is it negotiable?

I understand that you previously had a Capital 1 card. I believe that it was a secured card. Did you negotiate the unpaid balance or did you pay off the card before the card was cancelled? When the card was cancelled, how long did you wait before applying for another Capital 1 card?

Reason for the questions! I have a Capital 1 Secured Card which I acquired in January 2006. I paid a $75 deposit and my credit limit was $300, with an annual fee of $59 and an APR of 18.5%. Six months later, my limit was increased to $1.300. I have requested an increase in my credit limit each year and was declined. I have never missed a payment or been late for a payment on all my credit cards. My credit score is mid-700. After 3 years, my APR was reduced to 17.8% but last month they increased it to 18.3%. I currrently have no balance owing and I am seriously considering cancelling this card. Any comments?

By the way, approximately, what is your credit score?

I had their card only six months and i went from a $500.00 limit to $4500.00.I like the way they are treating me so far.

A month after cancelling the card and I get a notice in the mail that I have been approved for a credit limit increase of $2000 (from $1750 to $3750), ironic but otherwise not noteworthy.

Still an ex-Cap1 customer

I had MBNA in mind for one of my next choices of cards.

Average Joe: Yep, I'm sure there is a profit motive with respect to the secured card. People repairing their credit do not want to see their oldest established credit line closed, and likely hang on to a profitable product for them just to keep it on their history.

Irritating as a customer to be told no, and if I need to re-apply for a different card then I don't think I'm going to be a customer at all.

Footloose: Absolutely right. In the time since I got my Cap1 card I've added a few of the better rewards cards to my wallet (typical offerings, no annual fee, 1-3% back in cash or rewards and other benefits). The secured card was miles away from competitive amongst these.

Like I said, I don't hold it against Capital One, but it didn't make me feel appreciated as a customer and so I'll deal with other companies that have made that effort instead.

Ultimately the only way to show capital one that I don't like their practices is to do business elsewhere, although I may send a letter in explaining my point of view.

You couldn't have said it any better. I'm happy that you posted your experience with Capital One ---- Secured Card ---- because most people are not aware of their policies with secured cards. And as both you and average_joe pointed out, you cannot convert to an unsecured card without cancelling your secured card. On top of that, if you want an unsecured card, you have to wait 45 days after cancelling your secured card before applying for an unsecured card. Their management is way "behind the curve" on this policy. When they start losing customers over this policy, maybe they will wake up and "smell the coffee".

Anyway, if you are looking for an excellent unsecured card, I would suggest MBNA. There is no annual fee, their APR is lower than Capital One and you probably can get a higher credit limit. Remember, they require a minimum household income of $35,000 and no unpaid debts or bankruptcies. By the sound of your blog, you would fit perfectly into their qualifications. By the way, my next door neighbour has three of their cards which he acquired about 8 years ago and he swears by MBNA. They are calling him all the time as well as by mail offering APR rates between 0.9% to 2.9% for a period of 15 months. I don't know what his income was at the time he applied for the cards or what MBNA's policies were at the time. However, today he is retired and his monthly income from OAS and CPP is $1,325. Anyway, give these cards [Gold and Platinum] some consideration. It may be exactly what you are looking for.

Good Luck and have a GREAT DAY

It doesn't make good business to let a good customer go.If you had a secure card with one the major banks; after a few years they would return the deposit and still let you to continue to use their card.I applied a few times with capital one till i was accepted without the security deposit.I have the $59.00 annual fee also but i believe after one year i think i can get this waived or i will be looking somewheres else myself with no annual fee and lower interest.

So it's the end. Three years with Capital Ones secured card, 36 months of unblemished history. An original $75 deposit had resulted in a $1750 credit limit.

The card was good for re-establishing credit, but was simply not able to compete with other cards I have obtained in the interim.

I called and asked to cancel, was transfered to retentions and explained my reasons. They confirmed they CANNOT convert this card into a non-secured offering (with over three years of unblemished credit history, no derogatory credit entries and a score of 750), and in the end processed my cancellation, after offering some basic concessions (not including conversion to a non-secured offering).

As a pleasant surprise, I received a cheque for my deposit ($75) a week after calling in my cancellation, along with a few notices warning me about cancelling pre-authorized payments and reaffirming that the card was no longer valid.

In the final analysis I don't bear Capital One a grudge. I paid two annual fees, and improved my credit significantly thanks to this card reporting regularly with both credit bureaus.

Their secured offering is a rather inflexible product, but this is probably by design (I suspect secured card customers are more profitable paying annual fees for basic offerings), but as long as the consumer is aware upfront their secured card is still the most attractive offering going due to it's less than 100% deposit.

That said, I'm in no hurry to do business with Capital One again. It's hard not to take their refusal to convert my card personally.

Once they get your money on a secured credit card, they will not give you back your money in a few years unless you close the account. I find this method to be very unprofessional, especially if you have established your credit with them and you want to go with one of their unsecured credit cards. They say it’s the best way to establish credit and if you close the account down it will hurt your credit. What a bunch of hypocrites.