k_999_9

Just a warning about the Capital One credit card that offers frequent flier miles on several airlines. This happened to me and a friend of mine almost simultaneously:

Hidden in the fine print is the fact that everyone gets a $1000 limit, and if you exceed the limit, Capital One charges you $50 each time, rather than declining to authorize the purchase.

So picture this: You go on vacation for a 10 days with your new Capital One card, charge airfare, hotel, meals, etc. Then, in your next month's statement, you get hit with a series of $50 charges for every time you exceeded the $1000 limit.

I spoke to a customer service rep about it, and he was absolutely umoved by my complaint that I would cancel the card if the charges weren't waived. His reply: Go ahead.

I got the disctinct impression that he'd heard it a hundred times before.

Yes, it's in the fine print, which I didn't notice (I accept responsibility for that). Just be warned.

E

Wow, that's a whopper hiding in the fine print! It's not that hard to run up more than $1000 on a long trip, especially if airfare is included. So in effect, you're paying $50 for the privilege of acquiring the FF miles at a fast pace...shabby, Capital One, very shabby! Caveat emptor, indeed.

Patrick

And that means you're limited to $12,000 a year for mileage earning without paying big fees? Gee, stay in a decent hotel for a week and your bill will be more than the limit!

There were already some other things I didn't like about this card including not being able to combine miles with other sources and not being able to claim open-jaw flights. But this one is the worst!

Giovanna

I'm not sure I understand what you are saying. My husband and I each have a Capital One card and we have never had any $50.00 charges for charges over $1,000.00 on a trip. Our credit limit is considerably greater than $1,000.00 and I don't understand that unless your card has a $1,000.00 limit how you could be assessed $50.00 for additional charges. Would appreciate a more concise explanation.

Dick

I wonder if the charge is for "going over YOUR limit".....whattever the limit may be.

By today's standards, $1000 limit is on the low side.

k_999_9

I should, as an aside, mention what happened to the friend I referred to in the original post.

He went on a trip using the Cap. One card to charge the travel expenses. While away, he attended a computer show and decided to buy some surplus equipment (he owns a small business) and ship it back home. Yes, all charged to his Cap. One card.

Need I tell you about the look on his face when he got the credit-card bill the following month? Like me, his complaints to Cap. One went ignored, and he canceled the card.

What seems amazing about this whole business model (a charitable description, I'd say) is that Cap. One is willing to give up the potential for thousands of dollars worth of purchases just to bang people with several $50 charges and then watch them cancel.

The credit card business has to be the slimiest industry in the world.

k_999_9

OK, to answer about the limit:

We were, after the fact, told that Cap. One "always" has an "introductory" limit of $1000 for new cardholders, even if you've qualified for a $15K limit on othe cards (which we have).

So, Giovanna, in fact we did have a $1000 limit, which was never explained to us. And indeed we were charged $50 every time we exceeded the limit. That's about as concise an explanation as I can offer.

And I have a question: Have you ever exceeded your limit on your Cap. One card? You might want to check on what happens -- is there a fee? Most other cards just decline to authorize the purchase.

I don't know how long you've owned your Cap. One card or the terms when you signed up. All I'm describing are the terms (and trickery) used recently with Cap. One.

Patrick

This reminds me of a client of mine who went to Europe to do some major entertaining with their European representatives. He had just had quite an argument with VISA who previously set too low a limit and he repopened an American Express account. He confirmed with them after revealing major financial background that there was NO limit at all on the card. This was important he said as he would probably spend in the neighborhood of $100,000 on this trip. So imagine his surprise at a very expensive restaurant in Paris when his card was declined on a bill of several thousand dollars -- a most embarrassing situation. When he called American Express they said, well there isn't really a limit, but when you had just charged over $50,000 in a week we were concerned. Duh! What does "no limit" mean?

E

Patrick, you are singing my song! AmEx has driven us up the wall with their "concerns" over the years. We have been declined because, according to them, we had used the card "too much" in a location other than home--like, duh, we were TRAVELING!! Instead of calling us with these concerns, they just decline the charge, which as you say, is always embarassing. AmEx may not have a published limit, but their computer model assigns a de facto limit to every customer, which they enforce by simply declining further charges. For your convenience, of course.

Pat_in_Mich

Wow, thanks for the warning! This week I received an offer for this very credit card and was still considering it. Since I charge almost everything and pay off my bill each month, I almost always exceed $1000 in charges each month. My current cards have much higher limits and I never even come close to them. I'm sure I would have missed this in the fine print and then I would have paid some big money. I'll stick with the cards I have.

Andrew

k_999_9, I'm not sure why you are singling out the Capital One card? Every credit card out there will charge you a fee if you go over your credit limit. Isn't it your responsibility as the card holder to know what your card's credit limit is?

Andrew

John

I still don't get it. I've had cap one for the last 5 years and go over $1000 EVERY month, pay it off each month and have NEVER been charged a fee. Also have had excellent results in using the ff miles. In fact am flying to Eastern Europe on their ff miles this spring.
Am I missing something? I check my ststement VERY carefully and as I said have NEVER been charged a fee.

Dan

What's in my wallet?

Not Capital One!

Craig

While it is amazing to me that Capital One would have an introductory $1000 limit, it is the responsibility of the card holder to know the rules. That being said, I can't imagine why anyone would want to have this card in the first place. While you won't find the details on their web site, the number of miles required for a free flight is roughly double that of the frequent flier programs of the majors plus they don't offer upgrades.

MikeT

Capital One is known for their predatory credit card practices by luring people with poor credit into getting a card and then socking them with high fees.

strass

We haven't gotten a Capital One card simply because they harass us with multiple junk mailings every week. I'm talking two or three credit card offers A WEEK from these people! No thanks.

joan

I have a Capital One Miles One credit card, and each and every bill shows your credit limit, what you've charged, balance available. You don't have to be "told", you just have to look. I've never been declined (like Amex does) but I have had a couple of inquisitive phone calls, like when I'm booking two trips in the same month, charging to two different areas. So...I like my Capital One card (I don't carry a balance, so don't have experience with those horrible interest rates). It IS a business card, with a very high credit limit, so maybe that's the difference in my experience?

Keith

Get a new credit card and start using it with out checking something fundamental like the credit limit?

I would be too embarrassed to tell another soul.

Keith

lcuy

Amex is the one that really irks me. Like patricks friend, I asked and was told there is no limit. We had been usuing the card about 4 months, charging (and paying off) about $3500 per month.

Imagine my surprise when I got declined on a $160 charge. I called and they said I had $4000 or so on the card and they had cut me off till I sent in money!! I asked about the 'no limit'. they said there was none, but they just did it according to my "habits"!!

I'm now back with the Visa Cash rewards card. They gave me a $1000 limit for the first month, after that It went up to $15000.

A few of my personal hints on CC use, especially on trips:
1. always take back up cards,
2. carry them in separate places in case of theft
3. Call your CC company and let them know where you'll be travelling.
4. verify your current limit right before you go
5. I sometimes send in an advance payment before I leave on a trip, just so they have no reason to cut me off.

k_999_9

I'm surprised it took this long for the "it's your own fault" crowd to show up, but let's respond:

1. Yes, the limit shows up on your first bill. That was my point. You didn't notice the limit until you got a bill.
2. My other credit cards do not charge a fee for going over the limit. They simply refuse to authorize the charge.
3. I already admitted my mistake in not noticing the small limit and the ridiculous fees for exceeding the limit. So, how many times do you want me to say, "It was my fault," before you're happy? My point was just to help others avoid the same situation. If you've never failed to read the fine print in your life, congrats!
4. Again, if you're a long-time Cap. One customer and it works well for you, good luck, I'm just explaining a recent gimmick that Cap One uses.