Well, well now...
Capital One recently made public that they are finally going to start reporting the credit card limits of their customers to the big 3 credit bureaus: Equifax, Experian, and TransUnion.
Their selfish, hurtful, and long-standing practice of leaving that crucial piece of information off of their customers' credit reports was a very sneaky practice of theirs. One that was done - I'm sure - for their own benefit. Basically to keep their competitors from stealing their "good" customers.
You see, they didn't want the prying eyes of other credit card companies peeking into the credit files of their "good' customers to evaluate them for "pre-approved" credit offers, and possibly stealing them away.
So, Capital One made their customers look less attractive and less credit-worthy by not reporting their credit card limits to the credit bureaus.
You see, this is how it works:
When your credit limit is missing from acccounts reported in your credit files, it can cause your FICO scores to take a nose-dive (and FICO is the credit scoring model most widely used today).
Your FICO scores will take a hit because a big part of your FICO score (30%) is based on your credit "utilization," or how much of your credit you use or max out. Your credit utilization is calculated based on the outstanding balance you have on your account in relation to the credit limit.
So, when companies like Capital One don't report your credit limit, the FICO scoring model either uses your highest ever reported balance as the credit limit, or it uses nothing at all. And that makes you look maxed out!
And the more maxed out you are (or appear to be) on your credit accounts, the worse the impact on your credit score. The worse your credit score, the less attractive you are as a potential borrower or customer to other companies.
This little sneaky tactic makes you look like a bigger credit risk, like you're living on the financial edge, and like you're one of the people most likely to turn into a "bad payer" by missing payments and/or paying late.
And that's exactly what Capital One wanted. Despite what "else" they say. They've recently been trying to do damage control by saying they were only withholding credit card limits to protect the privacy of their customers. And we all know that's BULL!
The only thing they were trying to protect was their own greedy pockets! They weren't trying to protect your privacy! They wanted their competitors to see you as "unattractive" - plain and simple!
Once they had you, they didn't want anyone else to have you! Now that may be a little flattering (albeit obsessive and stalker-ish) in a love story, but when it comes to your credit card company - come on!
Capital One has been screwing with the FICO credit scores of their 50 million-or-so customers for quite some time. And most of their customers don't even know it!
Capital One has knowingly been hurting their own customers by duping them out of precious FICO score points, which could essentially raise their credit costs, or cost them credit approvals all together!
And they've been doing this for a long time!
A big-wig credit card company like Capital One knows exactly how the credit game is played. And they've been playing dirty. Too bad it's been at the expense of their very own hard-working, bill-paying, unsuspecting customers!
They're only making this change of reporting credit card limits to the credit bureaus, which is supposed to be in full effect by the end of this year, because of the continued pressure they've received from lending and consumer advocacy groups. This issue has continued to gain momentum and become more and more popular, so they have to save face.
So if you have a Capital One credit card, you should be pleased to know that they'll soon be removing the dagger out of your back, which could potentially restore reportedly anywhere from 40 to 80 or more FICO points to your credit score.
It's about time! Cause what they were doing just wasn't right!
And please... Don't you dare ask me "what's in your wallet?" Cause it sure as hell ain't Capital One!