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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (68977)	8/28/2006 4:33:22 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 110194

It is not wise to obtain credit from Capital One. Capital One does not report your maximum credit line to the credit reporting agencies, but they do report your credit used and highest credit used. Why does this matter? Your best credit score is obtained when you have a very high level of credit available, with very little credit used. Lets say I have $100k in available credit, and $3k used, with a highest credit used of $6k -- this produces a credit score near 850. Instead, lets say I have a $100k line with Capital One. They do not report the $100k, but they do report the $3k used, and the highest credit used of $6k. This produces a credit score based on $3k of credit used on $6k of available credit, giving you a credit score around 620. So if your credit card is issued by Capital One your credit score will be 620, while if it were issued by a different bank your credit score would be around 850. Quite a difference. Why does Capital One do this? This locks you into Capital One. Only Capital One knows your true credit score, while to everyone else who pulls your credit report, you look uncredit-worthy. Also, due to your low credit score, Capital One can justify extending you less desirable credit terms. .