Capital One Rewards

[mcmillanParticipant]

Hey guys,

As you know (or may not know) I already have a cap 1 secured mastercard with a $200 credit line (yuck). At the time I applied for the secured card (July), my TU was about 590. As of now it’s 611 (not that great), but I’ve really been thinking of applying for the Cap 1 Rewards. I know, I know I should wait, but from my previous post (Gas Card), you know I’m looking for a card that would give me some reward or points for purchasing gas. As I research what’s out there, the only card I qualify for is the Cap 1 rewards for average credit. Also, I know that you can have more than one Cap 1 card. I’ve had the secured card less than 3 months so maybe I should wait, right? However, I wouldn’t mind an unsecured card…hmmm

[fontanamanModerator]

Hey mcmillan,

The rule of thumb is waiting 6 months between applications, though I’ve heard of people here applying for other cards after having their CapOne for a few months and being approved. If you do not have any delinquencies on your reports, I would say it is possible. Have you applied for other cards recently?

You risk getting denied if you have delinquencies and the new inquires on your report (capOne pulls all 3) will bring your scores down, but this is going to happen even if you get approved.

CapOne has a preaproval page, have you tried it yet? https://findmycard.capitalone.com/PageVersions/LandingPages/LP_UNS_UM_V02.aspx

[mcmillanParticipant]

Thanx fontanaman,

I am preapproved for the rewards card I want…but I agree, it’s way 2 early. Besides, I did apply for the horrible Credit One unsecured Visa card a week ago, and I was approved for that, so I will wait. I realize that was a bad decision. Anyway, I’m almost finished paying on my secured loan with my credit union, so I think I will see if I’m qualified for an unsecured loan to get my score up. Also,I do have a tax lien on my credit report for $100 that might be pulling down my score. I went to the NYSTax website to see if I can pay it off, and it’s no problem. But, will it really help my score if I pay it off? HMMMMM…

[fontanamanModerator]

It will help your scores only if they remove the delinquency after you pay, so you may want to try to negotiate a “Pay for Delete” with them, it’s only a $100 so it’s definitely worth it. This will bring your scores up and improve your chances of being approved for better cards.

If you just pay and the delinquency is updated as “Paid” on your report, it will not help your score but it will help your chances of being approved for a loan if a lender is looking at your report. In any case, it’s better to pay it off, but again, it’s better to get rid of it altogether.

I haven’t heard much about Credit One, just that they offer cards for people who are rebuilding and that they charge annual fees. If you treat it right you should be able to get your scores up with pretty much any card that reports to the Credit Bureaus.

Did you get the card yet? Can you close it before it reports if you get approved for the CapOne card you want? Might be an option to look at.

[mcmillanParticipant]

Nope, didn’t get the card yet…I applied 9/11 was approved 9/12. I was okay with the card until I found out there isn’t a “grace” period for purchases. Not good…at least Cap 1 has a 25 day period before they start charging interest. Credit 1 starts right away…SMH!!!

[fontanamanModerator]

Yeah, that’s not good. I thought all credit cards had a grace period, isn’t that one of the points of having one? How much is the annual fee?

I would look into closing that card and applying for a different one. I suppose they’ll try to charge you the annual fee? It’s only been 6 days since you applied so there’s a chance they’re still processing your account. Give them a call.

[mcmillanParticipant]

You are soooo right…I just checked the status again and it is still processing! The annual fee is $99, which they take out every month(about $…my friend is convincing me it’s a great card, actually she has 2 of them. I rather have 10 Cap 1 credit cards if you ask me. With Credit 1 as soon as you make a purchase you hafta pay right away or you will acrue interest…IDK…

[fontanamanModerator]

Is your friend talking about the same card you have? She might have a different Credit One card. I mean, no grace period plus $99 annual feee doesn’t sound that great to me. Did they at least give you a decent credit line? Do they give credit line increases and can you product change to a better card later on? What did your friend say was great about it?

You might wan to consider all this now that you are still on time to cancel it. I’m not sure if it’s going to show up on your report or not if you cancel it now. I would think not ’cause they’re still processing your application but you might want to ask them.

As I said, If you are rebuilding I think you can benefit from any card if you don’t max it out and pay on time. But also, you don’t want to be working extra hard for this and it would be a good idea to look for a bank that will treat you right in the long run. I wouldn’t want to be paying any interest to them.

You’ll end up closing this card eventually as it looks like a card for people who are rebuilding. Considering you already have a secured card I would try to look for a better deal. Even a secured card by Bank of America or Citi sounds like a better deal as after a year you’ll be unsecured. The Capital One rewards sounds like a good card too.

You know, this is all my opinion, just try to make sure you know what you are getting into before you apply for anything. Check out other comments about this bank here: http://ficoforums.myfico.com/t5/Credit-Cards/credit-one/td-p/1229639

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