Jun
12
Capital One Gives Cold Shoulder
June 12, 2009 | Comments Off
I have had this Capital One Visa for years, about 10 to be precise. Great card. 7.9% fixed interest rate. That is, until now when they tell me they will hike it up to 13.9%. All in their right. They have given advanced notice and allowed me to reject the terms of the change (which will require closing the account in the near future).
All in all, the card has been good. They used to allow no fee balance transfers, and they gave me what at that time used to be a good credit limit ($7,000 in year 2000 was a lot of limit for me).. No wonders that when I started my business I used it for big ticket purchases that where being expensed/charged to my clients. (I may need to wait up to six months before my clients pay, so a low APR may be a good idea.
The issues started when they decided to refuse a few credit increases. No good for business any more. The rate increase just put the lid on the coffin.
Now I am looking for a card more suitable for business. Debating between the American Express Plum or the American Express Gold OPEN for Business. Too bad neither of them offer such low rates — they are charge cards, and must be paid in full at the end of the month. Bigger limits, though… and they do allow for purchases to be held on special sections of the card for longer times, at rates that are not something to call home about. They do compensate what they do by reducing paperwork, having a stronger travel insurance, and providing a few more tools for business. Not to mention the rewards program.
Goodbye Capital One. This change may prove once again that you do not want to mess with a perfectly good customer. The customer may not be receiving what he really wants… but as long as you keep some of the old favorable terms you had with him, he will continue being loyal.
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