Secured Capital One card graduation.

[Get AheadParticipant]

I just chatted with Raymond today, I also wanted to find out what is going on with this whole card graduation/transfer idea.

Here is the short version of what information I got from a customer service rep. I would like someone else to call and verify what I was told is standard practice among all the reps, either by phone or chat.

I inquired about a transfer of my secured account to an unsecured “normal” card. Of course I was told like everyone else that my card could not be graduated to an unsecured card, but If I applied for a new regular card my payment history from my secured card will still appear. That is good as this is one of my oldest accounts and do not want to lose all of that history.

I will post the chat log later tonight, just wanted to get an update out to everyone.

[Get AheadParticipant]

Hi and welcome to our Capital One chat service! One of our Account Specialists will be right with you.

You are now chatting with Raymond

Raymond: Thank you for visiting Capital One. I’d be happy to help you with your account questions.

Raymond: Whom do I have the pleasure of chatting with today?

you: Good Morning, my name is Adam W

Raymond: Hello Adam.

Raymond: How are you this morning?

you: Doing well. Thank you for asking.

Raymond: You are welcome.

Raymond: How may I assist you today?

you: I am interested in applying for a credit limit increase on my current account

Raymond: Let me check if your account has the offer of increasing the Credit Limit as of now Adam.

Raymond: To ensure we have the correct information on file, I’d like to verify some information with you. Would that be okay?

you: I did also have a question about when my card is going to be eligible for the transfer to an unsecured card

you: Sure, what information will you need

Raymond: I understand your concern. I am sorry to say that it is not possible to convert your Secured Card into a normal Credit Card.

Raymond: Secured Card will help you in building your Credit History.

Raymond: However you can apply for a separate normal card if you wish.

Raymond: Please verify the following information in order to access your account: Full name (exactly as it appears in your credit card), the last four digits of your Capital One account number, zip code, date of birth and last four digits of your social security number.

you: Adam X XXXXXX, XXXX, XXXXX, XXXXXX, XXXX

Raymond: Thank you. Please bear with me a moment while I review your account information.

you: Getting back to the answer about the unsecured card, its been stated that it happens.

Raymond: Let me explain you about how to increase the Credit Limit on your Secured Card.

Raymond: Deposits over the minimum security deposit amount will increase the credit limit with a 1:1 ratio (i.e., the credit limit is increased $1 for every $1 deposited up to a $3,000 credit line).

you: And another thing, yes a secured card is going to help build credit, if this card is a persons first c.c. what do you think happens when they pay this card off and close the account

Raymond: Adam, as of our records, it is not possible to convert the secured card in to a normal card.

Raymond: Adam, if you close your account, the deposit will be refunded back to you.

you: because they worked really hard and get their credit score in the 700s. Apply for a new card, unsecured, now get approved. All that hard work goes right out the window

you: There are other secured cards that transfer to unsecured cards, why does capital one not do that also

you: If I close this account, it will no longer be my longest open account on my credit file, and I will have to start from ZERO again

Raymond: No the points which you earned on your Secured Card will not be lost even if you close this account and open a normal account Adam.

Raymond: All the points which you have earned on your Secured card will be transferred to your normal card.

you: So if I open an unsecured credit card account my credit payment history will date back for the amount of time I’ve had my secured card

Raymond: Yes that’s correct your points and credit history will be converted into your new account.

you: I assume that I will have to open a Capital One Card…Which ones are available for applying to that will transfer my account to the new unsecured card.

Raymond: Let me provide you with the link of our Popular and Normal cards.

Raymond: Popular Cards.

Raymond: All Credit Cards.

Raymond: You can try with any card that suits with your requirements Adam.

Raymond: Is there anything else I can help you with today?

you: Thanks…so any normal card that Capital One offers will report my history from my secured card.

Raymond: Yes you are absolutely correct Adam.

you: Getting back to my limit increase, there are none available right now. And I would have to deposit additional money to increase it

you: Other than that, no other questions

Raymond: Yes that’s correct.

Raymond: Let me provide you with the link.

you: Thank you very much for your time Raymond.

Raymond: Secured Card- Additional Deposit.

Raymond: You are most welcome.

Raymond: You have a good day Adam!

Raymond: My goal today was to provide you with outstanding customer service. I hope I was able to meet that goal for you.

Raymond: If you’d like to provide feedback about your experience with us today, please click the button that reads @End Chat@ at top right to answer a quick questions.

you: Ok!

Raymond: Thank you.

[fontanamanModerator]

Thanks for sharing Adam.

Any account in good standing will remain on your credit report for 10 years after the closing date. Having said that and taking into consideration that everybody here seems to be getting different answers from Capital One regarding their secured card, I would not take this CapOne rep too seriously when he said ” All the points which you have earned on your Secured card will be transferred to your normal card…your points and credit history will be converted into your new account.” In fact, this doesn’t make sense to me.

The fact that you have to close your secured card and apply for a new one tells me that they will appear as two different accounts on your credit report (one closed, one open). Maybe what this person meant to say was that, your secured card history will remain on your report and will stay there in good standing for a number of years, which is true.

Now, closing your secured card and applying for a new one with Capital One will not necessarily harm your credit. Some people have done it and seem happy about it. In my case, this is my oldest open account (I know yours too), so if I close it right now, I’m afraid it will affect my credit and I don’t want to risk it. I rather wait another year or so when my other card grows older to close it.

[Get AheadParticipant]

Thanks for the info Fontanaman,

After reading it again, I was thinking the same exact thing. How could my oldest card still be reported if it is closed.

Capital One needs to get with the program and offer a card graduation to compete with the other two secured cards that I found that will.

I am going to chat with some one really quick to what is going on.

[Get AheadParticipant]

So I chatted with Sneider(Love these names they come up with).

She confirmed, that Yes, an upgraded account will still reflect the back payment history. As far as getting a secured card upgraded to an unsecured/normal card, I would wait until you have a good score and apply for a new account. I would do this over the phone with a live person to make sure that this new account is being upgraded, and not just a new account with a new history and any payment history that has been reported has been converted over to the new account. Once that is good you should be able to close the account, get your full deposit back, and close the account with no dings on your credit report.

[fontanamanModerator]

I spoke to an account specialist a couple of weeks ago and he encouraged me to apply for a new card, as I’ve had my secured card for more than a year now and my score has gone up more than 100 points. He said I could have the two cards if I wanted to, or close one and keep the new one, but that they couldn’t unsecure. I said I didn’t want two credit cards with the same bank and didn’t apply. I still don’t understand how the upgraded account will reflect that back payment history, but sounds like something I would definitely try to do. I just don’t want to be the first one to try! lol.

[Get AheadParticipant]

I agree! I’m hesitant to try it. I don’t want to find out if it works or not too. I wish there was a better way.

This person did say

Sneider: Adam, we will periodically review your accounts for graduation of secured to unsecured card accounts, however, we do not have the exact specifics when these reviews will occur as it is entirely based on your payment and credit history.

So apparently it happens. Maybe after ten years and they have made 10 times your deposit in interest…then they will graduate your card. I can’t wait that long. I want that money working for me. Shortly I plan to open a Bank of America, secured rewards card, bite the bullet, and cancel my Cap One card and lose that history. I will be setting my self back about 2 years, but I was under the impression that this card would be graduated in a short period of time as with other secured cards. I’ll give it til October of this year. If they can’t get my card unsecured, I will have no choice but to cancel.

I will also let them know that I would never suggest one of their cards to friends or family, and maybe make it a point that I would go as far as reviewing their secured card as the worst on any website that claims Capital One as one of the best secured cards out there.

[fontanamanModerator]

Yeah, I was also under the impression that this card would be graduated in a short period of time. I think it has to do with the way they advertise it:

Quote:

Send your refundable security deposit. Use your card responsibly. Build your credit. Earn credit line increases: you may earn credit line increases based on your payment and credit history.

I guess to me “refundable security deposit” meant that they gave your deposit back after having good payment history. Earn credit line increases meant to me that I would be given a nice increase, not $100 in one year. But they actually never mention anything about graduation. Smart way to phrase things. They fooled us all. I’m also giving this card one more year. Hopefully by then I’ll have better cards and will not have to worry about all this stuff.

I’m grateful that Capital One gave me credit when nobody else was willing to take a chance with me, but I also resent that the card does not grow with you. It’s hard not to feel that they are taking advantage of the situation.

[Author]

Posts