Pros: The idea of a low 9.9 fixed rate debt consolidation loan!
Cons: They say that you are pre-approved, but you are not!
I recently received a letter from Capital one stating that I was pre approved for a $15,000 loan to use for whatever I needed. It further stated that I would have a fixed 9.9% interest rate, and that I was pre-approved. My payments would be only 254 a month. I immediately completed and sent back the form. I was going to use the loan to consolidate some of my debts, and save 250 to 300 dollars a month. With this loan, I was going to be able to move out of my mother's house. It took forever to get a reply. I opened the reply expecting a check(I have extremely good credit). To my surprise, they had declined my "pre-approved" loan. The reasoning behind this was basically that I didn't have enough debt to need this loan. Oh, and that I haven't had a loan of this size for at least 3 years. I was really disgusted with this since I have a Capital one credit card with a limit close to this loan amount. Yesterday, I received another one of these offers, and filled it out again, just to see if they would give it to me this time. I figured what did I have to lose, since they were stupid enough to send me another one. And I will continue to fill them out and mail them until they decide to approve my "pre-approved" loan. I will continue to do this because every time that I mail one of these form in, they have to pay all of the postage, and any other fees that are involved with this.
I just received a notice that I was declined for another one of the same "pre-approved" consolidation loans. The reason this time was that I had insufficient income, and it hadn't been 90 days since my last application was processed. Let's see, last time the reason was because I made too much money, and this time I don't make enough. Interesting isn't it. I plan to write Capital One and explain how I do have enough income if I was able to get the loan.