02-06-2009 10:11 AM
I'm new here, I swear....and haven't checked my credit score in maybe 8-10 months, which was in the 650s.
I decided to check again today, and am now 720. Pretty pleased with that considering I still have a charge off from 7 years back, but otherwise not a single negative thing to say about me.
What facilitated looking into my credit score, is a letter I recieved from Capitol One yesterday regarding my 7.9% fixed platinum card that I've had for 11+ years (and only Visa/MC credit card). Which currently 3k of 17k, and always has some form of balance from 1k to 5k.
The letter basically says that due to economic conditions, they are taking my account and converting it to a variable account at 17.9% (if I recall correctly). I can chose to decline their remarkably generous offer and have the account closed and pay off the balance, or I can accept it.
Shooting from the hip, I was thinking of getting another card and transferring. Looking at some of the card offers, that seems even more ludicrous due to some of the interesting transfer debt calculations other vendors use.
Then I was thinking, get another card, decline the new rate, and pay it off with out doing a transfer, but feel this will temprorarily destroy my credit rating, since the account will show closed, but with a balance (isn't that bad?!).
Now that I know what my credit rating is (and only the charge off being a negative), I will be calling Capital One (backdoor maybe?) to get them to reconsider. I'd love your thoughts in this delimna.
02-06-2009 10:16 AM
02-06-2009 01:03 PM
Yes, I had read that... Hense my concern about leaving the balance, at the low rate, on the closed credit card.
I think I'm looking for some kind of crazy wisdom that just may not exist.
I suppose it's in my best interest to get a second card, and then call Capital One and see if I can play it against them.
I was just so miffed, that I assumed I must have missed a payment or something (it's all automatic), so I'm freaking out as to why Capital One would choose me, a long time loyal sheep, versus someone else who has shown to be a real risk. Maybe they are just kicking out form letters, and they are hoping people just agree to the new terms and pay the higher APR rates.
02-06-2009 02:03 PM
Do not close the card. Pay down the a balance and if you can get a 0% BT to a new card and you are 1001% certian you can PIF during the BT period (dont use it for anything else) then that will save you money.
I woult ask Capitol if they would reduce the interest rate but I would not push it since you dont want them to close the card for you or some other AA.
Once the Capitol 1 card is PIF, you can use it once in awhile and PIF each month that you do.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.