Please help. I made a mistake with Capital One

[tobyb]

I am in the prcess of rebuilding my credit, so I applied for and received a capital one card with a low limit. But i'm reading reports that capital one does not report credit limits, which adversely affects credit (the perception of high utilization). Unfortunatley, I have already used the card, and therefore activated the account.

Should I:

a) Write a letter demanding they report my limit to the CRA's?

Stop using this card and obtain a card that does report, therefore offsetting any potential FICO damage?

c) Not worry about it and use positive payments to build credit?

Or, are there any tricks, like paying off right before they report, etc.? I have just now begun to climb out of credit purgatory, and am paranoid about this. What should I do?

[Recovering Attorney]

It is a bad problem with capital One. You can do a number of things:

1. Pay it off so you have a monthly history;

2. Close it ( tell them in writing and tell them to report it as closed at your request) and pay it off monthly; you assuredly don't give them any more business but you keep a history;

3. See if you can transfer the balance. Chase is running some specials now. Then keep the account open but cut up the card, so you get the benefit of an open line without the temptation of using it.

Be careful with your other accounts. Miss a payment and they will jack your rate.

[madcrapper]

They do not report the limit, however, they do report your high balance which acts exactly the same as a reported limit. Simply charge the account up to near the limit and you can pay it off in full the next day. That line on your credit reports will show a high balance and your current balance. Use those two numbers to calculate your utilization of that card. It works out in the long run but there is just one extra step thrown into the process.

[codename_fortyseven]

All the more reason not to use the capital one card, unless you can help it.

[tobyb]

But will I still be able to build credit if I am not using it, and am not carrying a balance? Will not using the card adversely affect me?I have just been approved for another card. Should I just use that?

[jordanmorganusa]

Run, do not walk to the FTC. This is a practice that Crap One needs to stop. Go file your complaint to them about it RIGHT NOW.

Everyone else here with a Crap One card needs to do the same thing.

[nativechild48]

When I first got Cap one in 1995 to rebuild my credit, I noticed right away about this problem so I almost maxed it to buy my grocery (200 limit) and paid it off with my grocery money when my bill came. While it is is good to report this to the FTC which many including myself have done, Cap one claims proprietory information on CL's as an attempt to keep their customers, so when I was able to I BT'd them and keep the card with no fee for the age. I might buy a pair of pantyhose or a tank of gas for activity to keep the acct. alive but that is it.

[Recovering Attorney]

I'm with you Nativechild. Only way to use Cap One to your benefit is ocaissionally

[nativechild48]

Agreed Recovering Attorney!

[jordanmorganusa]

It brings your scores down artificially. It does not properly reflect your credit. It's false reporting and it's done purposefully. regardless if you have crappy credit, ok credit or stellar credit, it's hurting you.

FILE YOUR FRIGGIN' COMPLAINTS!!!