Typically what happened in 2005 and 2006 is homebuyers took out a loan for 100% of the value of their homes and then took a home-equity loan for 25% of the value.
"So you have 125% of the value in loans, then the house drops 10%, it makes just a great deal of sense to walk away from those," Cramer said. "But you don't want to lose your credit card. If you keep paying your credit card, your
Plus, Capital One is raising the APR on its credit cards, which is "great," Cramer said. With short-term rates coming down and credit cards rate going up, "the net interest margin is just going to be gigantic."
One thing Cramer said he's not happy about is the fact that Capital One threw away $2 billion buying back its stock higher. He owned the stock for his charitable trust,