Sign up bonuses have been a big topic in the last few years, with companies offering big incentives for people to sign up for their cards to people profiting from them. With American Express as a big exception, if you are not eligible for a sign up bonus on a certain card, chances are you would not be eligible for the card either. Capital One will be joining American Express in what could be an interesting start to the way banks view credit card applications.
For both personal and business cards, Capital One is offering multiple ways to get a credit card. If you have good credit and would normally get approved for the card you’re applying for, there will be no change. However, if you are applying for a card, and would be declined, Capital One is giving you the option for something different.
You can now accept cards with a higher APR, a lower credit limit, and even no sign up bonus at all. This option seems to be popping up after the credit check, and after the computer would have normally just declined you.
As a whole, I do like the idea of this, as it opens up more people to getting cards they may have wanted or could have used. The unfortunate part is that this isn’t a pre-qualification tool, so you’ll be responsible for the hard pulls. With Capital One, they pull all 3, bureaus so be careful!
The one thing to note is we aren’t sure if this is just a temporary thing while we deal with Coronavirus, or if this will continue even after things may die down. If this is temporary, then I think it’s a nice gesture for people that may need some additional credit to carry them through a bad time. If however, you do not have to apply for any more credit to help you through things, I personally would rather wait to apply when I would get the sign up bonus and higher credit limit.
What do you think about Capital One adding in this feature? Are there any cards that you would apply for if this system was in place for any issuer? Let us know down in the comment section below.