Is Capital One Loosening the Credit Limit Reins? What You Need to Know
What's up, everyone? Philip here. Today we're talking about Capital One and a potential shift in how they're evaluating credit line increases. Recent activity on the r/CapitalOne subreddit suggests some people are seeing HUGE credit limit increases, and even getting surprisingly high starting limits on new cards. Let's dive in!
The Buzz on Reddit:
Reports of credit limit increases as high as $25,000 and $12,000
Venture One cards being approved with $4,000 limits (unheard of!)
Existing cardholders getting upgrades with substantial credit line boosts
This is a big deal, especially considering Capital One's reputation for low credit limits, a practice often referred to as "bucketing."
Capital One's "Bucketing" Problem:
Capital One has been known for assigning lower credit limits, potentially hurting users with lower scores by increasing their credit utilization. Now, it seems they may be starting to loosen up and offer more upgrades and credit line increases.
My Own Capital One Experience:
I have the Capital One Venture (product changed from my Walmart card), Saver, and Quicksilver cards. My credit limits are:
Venture: $3,500
Savor: $4,500
Quicksilver: $500
These are my lowest credit limits with any issuer.
I requested a credit limit increase last year and was denied due to my credit profile. When I tried again last week, the reason for denial changed: I wasn't spending enough on the cards.
Key Takeaways:
Capital One may be shifting its credit line increase criteria.
Spending activity on your cards seems to be a more significant factor.
"Bucketing" may still exist, but escaping it might be possible.
Some users are being told their credit profile isn't in a group currently considered for credit limit increases.
My Strategy Moving Forward:
I'll focus my spending on my Capital One Venture and Savor cards for the next two months. I'll also continue spending $1,000/month on my Mesa Homeowner card for utilities and other expenses (3x points). I have recently concluded the signup bonus for my Gemini card and my One Key card, so I have freedom to choose.
Savor card: Dining and entertainment purchases (3x points)
Venture card: Walmart purchases (2x points) - I have to use my Venture card for Walmart since the store does not code as a grocery store. All else, including medical spend goes on the Saver card.
The Capital One Duo:
The Capital One Venture card and Savor card make up a great duo.
Savor Card: No annual fee (unless you get the SaverOne card, which has a $39 annual fee)
Venture Card: $95 annual fee
The Venture X card ($395 annual fee) offers even more value with a $300 travel credit (redeemable through Capital One Travel portal) and 10,000 Capital One miles after your anniversary date.
Pro Tip: You don't necessarily need the Venture card to transfer Capital One cashback to travel partners! You can transfer cashback earned on the Quicksilver (1.5% cashback) or Saver card to the Venture One (no annual fee), then transfer those miles.
The Plan:
For the next two months, I'll be putting all of my spend on the Capital One Venture card and the Savor card. After that, I will request a credit limit increase to see if the strategy works. I will report the results.