Credit FAQ


1.	What is credit?
2.	How do I maintain "good" credit?
3.	How can I avoid past due fees?
4.	How can I keep my credit under control?
5.	What are the consequences of having bad credit?
6.	How do I deal with creditors?
7.	How can I get a copy of my credit report?
8.	How can I increase my credit line?
9.	What's the difference between variable-rate and fixed-rate cards?
10.	Where do credit bureaus get their information?
11.	Do the bureaus make credit decisions?
12.	Can I get a copy of my report over the phone?
13.	Who else can access my credit report?

1.	What is credit?

You could consider credit as a tool you can use to build your credit history. You could also use it as a way to stretch your finances each month. Credit is your reputation when it comes to money and responsibility. It's what lenders and employers look at to make sure you're reliable when you want to rent an apartment, buy a house, get a job, or buy a car.

2.	How do I maintain "good" credit?

First, stay within the set credit limit on your card and keep track of how much credit you have left (i.e., your available credit). Second, always pay at least the minimum amount due on time. Paying late will result in late payment fees and negative reporting to credit bureaus.

3.	How can I avoid past due fees?

As soon as you get your statement, check the due date and minimum payment due. Make sure you pay at least the minimum payment each month and mail your payment seven to ten days before it's due, to allow for mail time. You can also pay your bill through our free Online Bill Payment. Log in to or enroll in Online Banking.

4.	How can I keep my credit under control?

Remember that your credit card is a tool that allows you to buy what you want, when you want it. But it's not free money and every dollar you charge will eventually have to be paid back. Also, budget your spending so you're only charging what you can pay off at the end of each month.

5.	What are the consequences of having bad credit?

Your financial reputation could be damaged for 7 to 10 years. Mismanaging your credit signals a lack of financial responsibility to any company that might lend you money or hire you for a job. What's more, it's tough to repair bad credit and it takes years of work and financial control.

6.	How do I deal with creditors?

Be honest. If you think you're going to miss a payment, take the initiative and call the creditor immediately. It's important to remember that if anything happens, it reflects negatively on you, not your creditors.

7.	How can I get a copy of my credit report?

You are entitled to a free copy of your credit report once every year. For a combined report from all three major bureaus, go to www.annualcreditreport.com. If you need your report more frequently than once per year, or if you need a report from only one of the bureaus, you may need to pay a fee.

Another time when you are allowed to request a free credit bureau report is if you think you may be a victim of some kind of fraud, like identity theft. In this case, you should immediately contact the credit bureaus and ask them to issue a fraud alert on your account. It will take effect within 24 hours and is the first step in fighting fraud. This alert is good for 90 days, and no new credit accounts can be opened before a call is made to you. A fresh copy of your credit report will show you if any new accounts are opened.

8.	How can I increase my credit line?

If you keep your Capital One account in good standing, we'll review it periodically for possible increases.

9.	What's the difference between variable-rate and fixed-rate cards?

Variable-rate cards have APRs based on financial indexes such as the Prime Rate or London Interbank Offered Rate (LIBOR). When the index decreases, so does the interest rate on your card. Your annual percentage rate (APR) is a combination of the index and a previously disclosed number of percentage points. A fixed APR doesn't vary based on index rate fluctuations.

10.	Where do credit bureaus get their information?

The personal information appearing on your credit report may either be reported by a credit grantor, obtained from public records, or it could be updated in response to correspondence with the individual consumer.

11.	Do the bureaus make credit decisions?

Lenders make credit decisions, not credit bureaus. Each lender has its own formula for evaluating a credit application and only the lender can tell you why it made a decision. The role of the credit bureau is to supply the lender with the contents of the report for review when making credit decisions. Many times, the decision does not rely on your bureau records alone, but instead is based on factors like your income, length of residence, or employment.

12.	Can I get a copy of my report over the phone?

Because of the confidential nature of credit information, credit bureaus cannot disclose the contents of the report over the phone. You can, however, write to the credit bureaus or order and view your credit report online by visiting www.experian.com, www.equifax.com or www.transunion.com.

13.	Who else can access my credit report?

A consumer reporting agency may furnish a consumer report under the following permissible purpose circumstances as defined in Section 604 of the Fair Credit Reporting Act (FCRA):
-In response to a court order or a Federal Grand Jury Subpoena.
-In accordance with the written instruction of the consumer.
-To a person whom someone has reason to believe
This person:
-Intends to use the report in connection with the extension of credit, or the review or collection of an account
-Intends to use the report for insurance underwriting
-Intends to use the report for determining the eligibility for a government license or benefit where the government agency is required to consider the consumer's financial status
-Otherwise has a legitimate business need for the report in connection with a business transaction involving the consumer