Credit scores

By
Mortgage and Lending with MS Lending, LLC 102016

Last week, while attending continuing education classes, one of the classes was on Credit Scores.  I learned some very valuable information in the class.  One of the things that really surprised me was information I learned about credit cards. 

So...

Pull out your wallet. 

Look at your credit cards (if you have them!)

Is one of them a Capital One card? 

Capital One is one of the largest credit card companies in the world.  And, did you know that their cards actually pull your credit scores down?  Yep!  The reason that they do this is because they do not report your credit limit on your card to the bureaus.  Because of this, it looks like your card is always maxed out, even though it might not be. 

I'm definitely not saying to go out and cancel your Capital One cards.  It is just a flaw in the system that could hurt alot of people if they aren't aware of the situation.  Capital One has many, many cards available and specialty niche products that fit into many people's lifestyle. 

Better yet, pay off all of your credit cards each month and you won't have a problem! 

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Rainer
83,973
Joanne Hanson
Coldwell Banker Colorado Rockies Real Estate - Frisco, CO
Summit County, Colorado Realtor
oh, oh...I only have two, and Capital One is one of them!  Isn't it interesting to see how credit scores are affected?  No credit cards, no score!
Sep 24, 2007 05:03 PM #1
Rainer
15,543
James R. Gill
Manhattan Beach, CA
Even if you payoff the card each month, you will still have the problem as you will never catch the one day where you have a zero balance!
Sep 24, 2007 05:14 PM #2
Rainer
2,522
Tino Muratore Illinois FHA-VA-First Time Home Buyer Specialist
Allied First Bank - Yorkville, IL

Michelle,

Your absolutely right...

Capitol One is one the worst cards you can carry....

They report the highest balance carried on the card as your credit limit.  So, If you have a card with a credit limit of $10,000 and the most you have charged on the card is $1000, then they report $1000 as your available credit.  Lets say your current balance on the card is $800, guess what...you're maxed out!  Not only does this hurt your credit score but it also makes you seem less attractive to other credit card companies.  If you look less attractive, you are less likely to be shopped away from Capitol One.  Another little catch is that if you hurry up and pay off the balance and close the card, depending on how long you've held the card, closing your account could hurt your credit score too.

Sep 24, 2007 05:23 PM #3
Rainmaker
111,050
Nancy Brenner
Referral Associates of Georgia, Inc. - Roswell, GA
Roswell Georgia Real Estate Agent
"What's in YOUR Wallet???"  NOT a Capitol One credit card!
Thanks for sharing the info from your class.
Sep 24, 2007 06:02 PM #4
Rainer
39,049
Michael Delp
Mortgage Pro - Telford, PA
Thank you for sharing this info. I look at tons of credit reports but never really took notice that Capitol One reported that way.
Sep 25, 2007 01:43 AM #5
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Rainer
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Michelle Dugan

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