Another Cap One, sorry

grneydangl · ‎01-12-2009

Here's my story, I just want anyone's thoughts/opinions/advice.... I got a $5000 limit Cap1 about 5 years ago (I was 20) Of course like a silly college student I racked up that $5000 quick. I've never completely paid it off (the lowest balance I got to was $3500) I know this is totally terrible util, I pay more than minimum every month, never late but I just use and use and use. I'm going to be able to pay it off in February. My question is, do you think once it's paid they will either CLD it or completely close it?

USC08 · ‎01-12-2009

There's a possibility that they CLD you especially given the current credit climate. As far as closing it I don't think so but you never know. The only thing they won't get is the intrest you've been paying all this time. Although I havn't heard anything about Capital One giving CLD/Closing to anyone on a massive scale like AMEX and others.

Maybe some of the other members can chime in?

Message Edited by USC08 on 01-12-2009 10:28 AM

myFICO - EQ: 776 EX: 763 TU: 791

Anonymous · ‎01-12-2009

I don't think I've read anything about Cap1 doing mass CLDs or closures either. That doesn't mean that they're not doing it on a case-by-case basis though.

Is this your only card? Is it maxed out right now? Do you have any baddies (charge-offs, late/delinquent payments, judgements, liens, collections, etc...) on any other account?

I don't think there's any way to predict, unless Cap1 has been chasing your balance, and you didn't indicate that. Have they been softing you a lot, lately? Not that you can rely on account reviews as an indicator (let alone an accurate one) to predict CLDs, but if they've been softing you a lot lately, and you've got some new(er) baddies, that might be a little writing on the wall.

BUT, whether they're going to CLD it or not, if you've got the money, pay it off. Paying more interest hurts more, financially, than having a lower credit line. Paying it off should increase your credit score, and better position you with Cap1 and other lenders.

oracles · ‎01-12-2009

If you have never been late or never gone over the credit limit, i think you actually will have a good chance at getting a credit line increase. You have shown high balances but you have never defaulted. Why would they have adverse action against you. I dont think you have anything to worry about. I would ask for a credit increase after you have paid off the balance if i were you. This is providing you have not got any recent baddies on your report. I too have never heard of Cap 1 giving CLD.

Message Edited by oracles on 01-12-2009 01:49 PM

2014 Goals - 800 club
Helpful Threads
Backdoor Numbers

Frequently Requested Threads

grneydangl · ‎01-12-2009

It's not my only card, I've got another Cap1 (Just $500) Hooters, HSBC and store cards (Gap, Macys and Target) and Chevron card. They're not balance chasing but I was just wondering if this would give them the chance to. No baddies just high util and new student loans.

Anonymous · ‎01-12-2009

Cap1 wont balance chase you, they are probably mad you didnt default so they can sue you! I agree with the above poster saying they might actually give you CLI =)

grneydangl · ‎04-15-2009

Well it did happen... I was expecting it but I'm still shocked... paid off my $5000 balance and today I got a call saying they decreased the limit to $700......... Had the card for about 5-6 years now and had 2 lates both back in '05... always paid more than the minimum

So now I have a $700 and a $500, should I just combine and close the newest one?

MojaveMoon · ‎04-15-2009

@grneydangl wrote:
Well it did happen... I was expecting it but I'm still shocked... paid off my $5000 balance and today I got a call saying they decreased the limit to $700......... Had the card for about 5-6 years now and had 2 lates both back in '05... always paid more than the minimum
So now I have a $700 and a $500, should I just combine and close the newest one?

I'm sorry to hear this happened. Here's a theory as to what might have caused this huge CLD -- when a person typically makes small payments and has been carrying a balance, it can backfire to suddenly make a huge payment. To the creditor this sudden large out-of-the-ordinary payment is interpreted as representing a sudden windfall of money. Therefore, it may be better to take that large amount of money and break it up into several payments instead of using it to make one gigantic out-of-the-ordinary payment.

grneydangl · ‎04-15-2009

Yep, I figured that was going to happen but it has been such a burden carrying that balance for so many years I just wanted to pay it off! My jaw just dropped when she said $700... it sounded like she had a really hard time having to tell me.

So is it better to leave both Cap1 open or combine?

Anonymous · ‎04-15-2009

Wow, I'm speechless. Totally in shock and so sorry this happened to you.

Did you ask the CSR why? Have your scores gone down since you originally opened this card 5 years ago? I guess I just want to understand so that I can try to avoid a similar fate befalling my Cap One.

Congrats on paying this off though!

Message Edited by VEEnVEGAS on 04-15-2009 07:45 PM