So I got my first credit card with CapitalOne. Big mistake.
"I'll just use it every month, pay off what I owe, and build up my credit, " I thought. Not with CapitalOne. They advertise it as a nice way to build up your credit and give you a little "Credit Steps" brochure, but they are operating on a business model designed to scam high "overlimit" fees from their own finance charges and credit protection fees.
1. Close to the (very low) limit, the finance charge of less than $5 posted before my payment did. CapitalOne treated *their* finance charge just like a purchase and slapped a $39 fee on it.
2. So I paid $50 to get it back below the limit. Unfortunately, since the charge for their suggested payment protection plan went thorough, CapitalOne charged *another* $39 overlimit fee.
3."OK, " I thought. "I won't use this card again except when I need to use a credit card (car rental, etc.), and I'll just send the monthly minimum payment to come from my bank every week. That should take care of it." After three weeks of paying it down, I was surprised to see it jump back up again. Why? Because the payment protection plan had posted again, so CapitalOne charged me another $39 on that $3.08.
When I called CapitalOne to request cancellation of the credit protection and waiving the last two of the $39 fees, "Trent" and his supervisor "Miranda" insisted that CapitalOne had the right to charge fees on everything except its annual account fee. I told Miranda to cancel my account.
If you were thinking of getting one of their low-limit credit cards, be forewarned it's a scam. They tell you it's a great way to build your credit, but they really make money by charging fees on fees.
I hope shady credit card lenders go the same way as subprime mortgage lenders.
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