Reply
New Member
Wyeth
Posts: 7
Registered: ‎01-30-2013
0

CapitalOne account restricted - what happens when I close?

I have a CapitalOne card that has been restricted for the past two years.  It is closed for all intents and purposes - I can't charge anything to the card and they will never reactivate the account.  They put my account into restricted mode for repeated missed payments.

 

Now, I have been paying the minumum because I want them to keep reporting the account.  My credit reports show a $500 available credit line and no derogatory remarks.  What happens when I bring the balance to zero?  Will they close the account?  If so, will they list the account as "closed by credit grantor"?

 

Has anyone tried calling and closing the account before bringing the card down to a zero balance to avoid derogatory remarks?

 

Thanks as always for your help.

Senior Contributor
john398
Posts: 3,515
Registered: ‎01-19-2009
0

Re: CapitalOne account restricted - what happens when I close?

it is not counted as deregatory if it says closed by grantor as there are many reasons an account can be closed by the grantor I would not sweat that too much

Established Contributor
bettercreditguy1
Posts: 751
Registered: ‎02-11-2012
0

Re: CapitalOne account restricted - what happens when I close?

At the time the account gets to zero balance, the account will be officially closed. However, at this time you do not want them to close it. This will result in the account going to collections or a charge off which will dramatically destroy your credit for seven years plus 180 days. You are far better paying it off as it is now. Do not miss a beat by being late.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico) EXP 735 (FAKO)
Updated scores 06/01/2014 EQ 797(Fico) TU 768(Fico) EXP 769 (Fico), EQ 849 (Next Gen 5/27/14 Penfed)


Remember the Three P's: Pay early in Full, Pay on Time, Patience
Contributor
jonmartin
Posts: 92
Registered: ‎06-05-2009
0

Re: CapitalOne account restricted - what happens when I close?

I had a similar issue with th account closed but after repeated calls I was able to get it re opened after I paid in full. Keep calling the numbers in the backdoor thread I believe for the "analyst" 

NFCU Flagship Rewards Visa Signature $5,000
NFCU NavCheck LOC $10,000
Chase INK Cash $5,000
Chase Freedom $1,500
Bank of America Cash reward 123 $5,000
Barclays Arrival World MC $3,000
Mega Contributor
Creditaddict
Posts: 19,621
Registered: ‎10-23-2007
0

Re: CapitalOne account restricted - what happens when I close?


bettercreditguy1 wrote:

At the time the account gets to zero balance, the account will be officially closed. However, at this time you do not want them to close it. This will result in the account going to collections or a charge off which will dramatically destroy your credit for seven years plus 180 days. You are far better paying it off as it is now. Do not miss a beat by being late.


WHAT? If the account is "Closed by Credit Grantor" and Paid in Full $0 balance where in the world are you getting that it will actually change and result in a collection/charge off.... and what is this 7 years plus another 180 days???

Fico Scores: EQ 657 Cabelas, TU 662 Walmart, EX 699 Wells (07-27-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Express $300
Over 40 Cards in between :smileytongue:
Established Contributor
bettercreditguy1
Posts: 751
Registered: ‎02-11-2012
0

Re: CapitalOne account restricted - what happens when I close?

Unless I mis understood, currently you are making payments on an in active/unusable account. If you request to close it with a balance showing, the credit card company will then charge the account off or send it to a collection agency. Should that scenario occur, then the charge off/collection will remain on your credit report for either seven years or seven years and 180 days . As it stands, the account is frozen as such that you can not actively place new purchases onto it. Since you are still able to make payments to the original creditor, it is not showing either of those conditions.  A credit card company will usually not close an account if there is a balance or payments are being made on a routine basis.  Whether an account is "closed by grantor" or "closed by consumer" neither action is more or less harmfull on your Fico Score. It is just reporting an  action on the account. Should you continue to make payments until a zero balance is shown on the account and then close it, the only negatives would be any reported late or missed payments during the life of the trade.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico) EXP 735 (FAKO)
Updated scores 06/01/2014 EQ 797(Fico) TU 768(Fico) EXP 769 (Fico), EQ 849 (Next Gen 5/27/14 Penfed)


Remember the Three P's: Pay early in Full, Pay on Time, Patience
Mega Contributor
Creditaddict
Posts: 19,621
Registered: ‎10-23-2007
0

Re: CapitalOne account restricted - what happens when I close?


bettercreditguy1 wrote:

Unless I mis understood, currently you are making payments on an in active/unusable account. If you request to close it with a balance showing, the credit card company will then charge the account off or send it to a collection agency. Should that scenario occur, then the charge off/collection will remain on your credit report for either seven years or seven years and 180 days . As it stands, the account is frozen as such that you can not actively place new purchases onto it. Since you are still able to make payments to the original creditor, it is not showing either of those conditions.  A credit card company will usually not close an account if there is a balance or payments are being made on a routine basis.  Whether an account is "closed by grantor" or "closed by consumer" neither action is more or less harmfull on your Fico Score. It is just reporting an  action on the account. Should you continue to make payments until a zero balance is shown on the account and then close it, the only negatives would be any reported late or missed payments during the life of the trade.


Closing an account that is current and that you are paying on time for and that is not currently reporting negative DOES NOT change it to delinquent and charge off and sent to collections.  What happens to accounts that you close while they still have a balance many times will report your balance with a limit of 0 so your util will be like 300+%, but otherwise no negative as long as the payments continue and you pay off.

 

OP What is the current balance?

and really in the end any account open and with a balance is hurting you more than helping most likely unless literally it's your ONLY account.

Fico Scores: EQ 657 Cabelas, TU 662 Walmart, EX 699 Wells (07-27-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Express $300
Over 40 Cards in between :smileytongue:
New Member
Wyeth
Posts: 7
Registered: ‎01-30-2013
0

Re: CapitalOne account restricted - what happens when I close?

The balance is $138.  I have other cards.  Sounds like calling and asking them to reopen the account is the smartest way to go.  I am looking into buying a house so I don't want any sudden movements on my credit report - doing anything that could potentially make the account report as closed (even with zero balance) is something I wish to avoid.

Mega Contributor
Creditaddict
Posts: 19,621
Registered: ‎10-23-2007
0

Re: CapitalOne account restricted - what happens when I close?


Wyeth wrote:

The balance is $138.  I have other cards.  Sounds like calling and asking them to reopen the account is the smartest way to go.  I am looking into buying a house so I don't want any sudden movements on my credit report - doing anything that could potentially make the account report as closed (even with zero balance) is something I wish to avoid.


You won't be able to re-open the card, you would have to apply for a new card.

You are looking at buying a house now?

I would think another credit card paid in full would be better then a credit card with a balance... what other cards and balance/limits do you have?

Fico Scores: EQ 657 Cabelas, TU 662 Walmart, EX 699 Wells (07-27-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Express $300
Over 40 Cards in between :smileytongue:
New Member
Wyeth
Posts: 7
Registered: ‎01-30-2013
0

Re: CapitalOne account restricted - what happens when I close?

This is how things will look in March when I apply for mortgage pre-approval, as of now:

 

Amex 0/0 (New)

Barclays 0/3000 (Opened six months ago)

Cap One 0/300 (Orchard)

Cap One 138/500 (Restricted; oldest credit card account)

GECRB 0/100 (Opened six months ago)

 

So my credit report will show low utilization and high available credit.  I am thinking I will pay off the Cap One and be done with it after I buy a house.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+