Consumer complaint received 2025-05-16 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Trouble using your card — Can't use card to make purchases
Company: CAPITAL ONE FINANCIAL CORPORATION
State: AR

Complaint narrative:
Capital One, like many credit card companies, uses pre-approval offers as a marketing tool to attract new customers. These pre-approved offers often appear enticing, promising a specific credit limit and potentially attractive interest rates. However, the fine print and the subsequent account management can sometimes differ from initial expectations. This is how Capital One 's pre-approval process works and the potential for restrictions after account opening. 

Capital One 's pre-approval offers are based on a soft credit pull. Meaning they check your credit report without impacting your credit score significantly. The offer is tailored to your credit profile, considering factors like your credit score, income, debt-to-income ratio, and existing credit history. The pre-approval letter or online notification will typically state a potential credit limit and the annual percentage rate ( APR ). This is not a guaranteed approval ; it simply indicates a higher likelihood of approval based on their initial assessment. Once you accept a pre-approval offer, you'll need to complete a full credit application. This involves a hard credit pull, which can slightly lower your credit score. Capital One will then conduct a more thorough review of your financial information. While the pre-approval suggests a high probability of approval, it's not a guarantee. They might still deny your application if your circumstances have changed since the initial soft pull, or if they uncover information that contradicts the initial assessment.

The key point to understand is that the pre-approved credit limit is a potential limit. Capital One reserves the right to adjust the credit limit after the account is opened. Several factors can influence this : Information Discrepancies : If information provided during the full application differs from the information used for the pre-approval, Capital One might lower the credit limit.

Credit Score Changes : A significant drop in your credit score between the pre-approval and the full application could result in a lower credit limit.

Debt-to-Income Ratio : A higher debt-to-income ratio than initially assessed could lead to a lower credit limit or even denial.

Income Verification : If Capital One can not verify your income, they might be hesitant to offer the initially proposed credit limit.

Account History : Even after approval, your credit limit might be subject to review and adjustment based on your spending and repayment habits. Consistent on-time payments and responsible spending will generally lead to credit limit increases over time.

Account Usage and Restrictions : Capital One, like other credit card issuers, monitors account activity closely. While the pre-approval might suggest a certain credit limit for spending, exceeding that limit or engaging in risky spending patterns ( e.g., consistently high utilization rates ) could lead to restrictions. These restrictions might include : Credit Limit Reduction : If you consistently use a high percentage of your available credit, Capital One might lower your credit limit to manage risk.

Account Closure : In extreme cases of irresponsible spending or non-payment, Capital One could close your account.

Increased APR : Consistent late payments can result in a higher APR, increasing the cost of borrowing.

In Conclusion : Capital One 's pre-approval offers are a marketing tool designed to attract customers. While they provide a reasonable expectation of approval and a potential credit limit, it's crucial to understand that this is not a guaranteed outcome. The final credit limit and account terms are subject to Capital One 's review and assessment during the full application process and ongoing account management. Responsible credit usage is key to maintaining a positive credit history and avoiding potential restrictions. Always read the terms and conditions carefully before accepting any pre-approval offer.

Company response to consumer: Closed with explanation