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Credit Card Applications » News » Other » Capital One Risks its Multi-Billion Dollar Business To Steal $200 From Matt! Really?!

Capital One Risks its Multi-Billion Dollar Business To Steal $200 From Matt! Really?!

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Capital One Risks its Multi-Billion Dollar Business To Steal $200 From Matt! Really?!

The Consumerist published this week a frustrated rant from a Capital One customer outraged by the bank`s alleged determination to “steal” his $200 security deposit. To be exact, the frustrated consumer (“Matt”) was attempting to get his initial deposit back after closing his secured credit card account. He reports of Capital One failing to communicate the status of the refund, primarily because his calls were placed on hold or dropped. For the full text of Matt`s Capitol One gripe, read the article at Consumerist.com, but read on for a fresh dose of reality.

Patience is a Virtue

As a disillusioned consumer, Matt seems uncertain of who exactly to blame for his frustration, the bank`s customer service representative or the bank itself. In the article, He seems to be lashing out at Capital One as a whole, but later cites that the representatives who put him on hold would simply disconnect the call. While it is understandable that Matt is furious to be left voicing his anger into a lifeless phone, one must take anyone`s frustration with a grain of salt.

It is highly unlikely that Capital One bank decided to steal $200 from Matt.

Capital One is currently ranked Second in US and Fifth, globally, by Fortune`s “Global Top Companies for Leaders”. The bank holds 145th place on the Fortune 500 list, and has earned a laundry list of top ranking awards in leadership and banking innovation. Clearly, despite this customer service rant and occasional water cooler grumblings, Capital One has a reputation as one of the world`s leading lending banks, with $206,103,658 in assets – ranking number 14 on the Federal Financial Institutions Examination Council`s list.

While the circumstances of Matt`s phoning misadventure with Capital One is worth investigating, one must consider that 21st century technology allows more effective ways to get immediate assistance from Capital One. For example, consider the Live Chat option: anyone visiting the bank website has seen the pop-up chat window that instantly connects to a knowledgeable assistant 24 hours a day, available on its website for those who do not wish to deal with phone support. With Twitter, Facebook, and other online communication tools all available from Capital One, there are ways Matt could have gotten feedback from a live rep without the archaic “phoning-it-in-to-get-it-resolved” efforts.

While the case of closing the card and getting the refund sounds a lot like miscommunication and overreaction of a phone-stressed consumer, rather than Capital One`s customer service shortcomings, let’s review Matt`s decision to close the secured card in a first place.

Matt Should Have Never Closed The Card.

In Consumerist story, Matt decided to close his Capital One Secured Card because of an annual fee. “He should have never done that” – says Michael Germanovsky, editor-in-chief at Credit-Land.com

“Capital One`s secured card gives a real opportunity for millions of Americans who are looking to rebuild their credit.” – says Michael. – “When your credit is bad, as it was apparent with Matt, it is nearly impossible to get an unsecured credit card. Matt’s secured credit card with Capital One gave him the necessary credit score boost that led him to attain an unsecured card from another bank, just before he decided to close his Capital One card. This move, however, has probably diminished his credit score and took away a great chance to graduate into another unsecured credit card.” Capital One rewards its secured credit card customers with ability to graduate into an unsecured credit card. In our chat with Capital One`s customer service, Capital One representative confirmed that secured card customers that show exemplary payment habits will graduate to an unsecured card from Capital One, an opportunity other banks do not give.

Of course, Capital One is not the only bank that offers secured cards, but it is the only bank according to our research that has the following benefits for bad credit consumers:

  • A small Security Deposit gets you a bigger credit line. Unlike other banks, Capital One allows consumers to gain a higher credit limit than the amount of their security deposit. This is total innovation considering that other banks match the credit limit to the security deposit.
  • Grace period of 25 days. Majority of other secured credit cards demand their interest the moment you make a purchase. This is not the case with Capital One. You are given an opportunity to pay back your balance, unlike other secured cards, at the end of your billing cycle, without incurring interest rate charges.
  • Automatic reporting to the 3 major credit bureaus, which is key for rebuilding a good credit standing and monitoring accounts.
  • Only $29 annual fee – which Matt lists as being the reason to cancel his secured card. In fact, this is the lowest annual fee among other secured cards on the market today.

For the sake of the argument, let`s compare two other top-rated secured credit card options for bad credit consumers: HSBC`s Orchard Bank Classic MasterCard and Applied Bank`s Secured Visa Gold Credit Card:

Apply for Credit Card Now!

Orchard Bank Classic MasterCard
(by HSBC Bank Nevada)

Apply for Credit Card Now!

Applied Bank Secured Visa Gold Card

Security Deposit from $200

Security Deposit from $200-$5000

$0 Fee for first year, $35 annual fee afterwards

$50 Annual Fee

7.99%-24.99% Variable APR based on creditworthiness

9.99% Fixed APR

No grace period

No grace period

Automatic Reporting to Three Credit Bureaus

Automatic Reporting to Three Credit Bureaus

What it comes down to it, Capital One`s secured credit card offering is not that bad at all by industry standards. In fact, it is the only top trending secured card on the list of major nationwide banks, and for a good reason:  It is the only secured card that lets you graduate to an unsecured credit card, a promotion that is otherwise very difficult to attain for people with bad credit.

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