Capital One’s credit card policies

Obtaining credit can seem a little mysterious. You send in an application, and you’re either approved, declined or, in some cases, offered different terms than you expected.

Credit card policies can vary across credit card issuers, and general terms vary by card. It may seem a little overwhelming, so let’s start with the basics.

What you’ll learn:

• Credit card issuers have policies in place that dictate how they’ll make decisions about offering credit and how they’ll handle repayment.

• Capital One assesses applicants’ creditworthiness based on information provided in their application and credit reports.

• Capital One doesn’t charge over-the-limit fees.

• To keep your account in good standing, be sure to pay at least the minimum payment by the due date.

A credit policy is a set of standards that financial institutions and other companies create to document how they will assess creditworthiness and make lending decisions, such as whether to offer credit or modify existing credit limits and how to handle repayment. 

Every lender’s credit policies are different. But they all must follow applicable fair lending laws and regulations. Those can include federal laws like the Equal Credit Opportunity Act (ECOA), which protects consumers from discrimination, as well as state laws and laws that apply only to certain kinds of loans.

Capital One has a number of policies in place for making credit decisions, and terms and agreements can vary by card. For information about your specific card, you can view information about your Credit Card Agreement.

Here’s some general information about Capital One’s policies:

Capital One uses applicants’ personal information and data from credit reporting agencies to determine credit risk. The specific policy Capital One uses varies depending on whether you’re applying for a new account or a credit line increase on a current account. Some common variables these policies take into account include:

• Annual income

• Employment status

• Credit limits, balances and utilization ratio (how much of your available credit you’re using)

• Recent credit inquiries

• Mortgages, other debt—like student loans or car loans—and payment history 

For existing accounts, in addition to the variables above, information specific to your Capital One account—like your card payment history and usage of your current credit limit—is used to determine your credit risk.

If your credit risk changes, Capital One may adjust your credit limit. That could mean an increase or a decrease, depending on the circumstances. Depending on how long your account has been open, Capital One uses slightly different policies to determine whether to offer additional credit. 

In general, customers responsibly using more of their credit line—either by spending and paying off the card each month or paying a balance off over time—are more likely to be approved for credit line increases. Some Capital One credit accounts—such as new accounts or accounts that recently received an increase or decrease—may not be eligible for a credit line increase.

If you don’t want the increase, you can always decline it. Just call 1-800-CAPITAL (1-800-227-4825), and Capital One will reset your credit line to its previous limit. Don’t want to be considered for a credit line increase? Call the same number to opt out of future consideration for five years. 

If you want to learn more, check out some frequently asked questions about credit limit increases.

Capital One cardholders are never charged over-the-limit fees. View important rates and disclosures. And many eligible cardholders may be able to exceed their credit limits, especially for one-time spending needs. 

If your account has access, you can use the Confirm Purchasing Power tool to check whether an over-the-limit purchase may be approved. You can also disable the ability to spend over your credit limit in your overlimit preferences.

Here are some key points of Capital One’s payment policies:

• The minimum payment must be paid by the due date to avoid late fees and keep your account in good standing.

• A payment must be received before midnight ET on the due date to apply to the current billing cycle (or before 8:00 p.m. ET if the due date is the same as the statement closing date).

• You may change your payment due date if needed. If you change your due date, the new due date will be effective within four to six weeks—in the next billing cycle. Until then, stick to the due date on your statement to avoid late fees.

Capital One is committed to helping our customers succeed by providing safe, affordable and equal access to credit and offering policies and tools that can help them manage that credit wisely.

Looking for a credit card that’s right for you? Check to see if you have guaranteed card offers—with no harm to your credit scores.