02-27-2010 07:14 AM
02-27-2010 07:30 AM
I received a letter from Cap One sometime late last year letting me know they were going to increase my interest rate from 7.95% to 17.9% beginning January 2010 due to the economy. Having been a *perfect* customer since 1998 (in my eyes--not their's I guess, because they don't make any money off of me) by paying off balances within 30-60 days, having a refi car loan from cap one in the past, etc., I wasn't happy to say the least. I was using the card exclusively, because it had the lowest interest rate between my 2 CC (other one is Providian/now Chase, with 13.24% interest. Chase hasn't increased my interest rate the whole time I've had the card, also since '97-98). I have only charged about $15 to Cap One since December, since they are no longer my card of choice, and I've considering closing the account. Total credit avail on CO is $7500, chase is $12k. My credit is excellent now, and I don't want to ding it by closing Cap One. Should I keep COne open, using it sparingly to avoid closure/fee for non-use? And, keeping my available total credit open in case of emergency, or should I close it on principle? I have auto loan, mortgage, Kohls, and these 2 CCs.
I see no reason to close this card. I've had all my rates increased over the last 2 years or so but I decided to play their game and not give them anymore interest. It doesn't matter what your rate is as long as you don't carry any balances forward and PIF each month. They can charge 100% interest but 100% of zero is still zero.
From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802
You can do the same thing with hard work
Credit Scoring 101
Frequently Requested Threads
Credit Problems Which Is Worse?
Whats In Your FICO Score
02-27-2010 07:37 AM
Hi emma...I agree with marinevietvet. If this card doesn't have an annual fee, why not keep it? Charge something small on it every couple of months and pay it off right away. Or, what I've done with the cards I no longer use is to put a small monthly fee on them (Netflix, book club, etc.). That way the card shows activity each month, and I don't have to mess with it.
Closing it on principle does nothing. They won't care.
02-27-2010 07:37 AM
02-27-2010 07:43 AM
There is a sticky at the top of this board titled "Closing Credit Cards". Lots of good insight.
If you close this card you still get to keep the positive history (for up to 10 years) which also contributes to your AAoA. What you will loose is the available credit which will impact your utilization. You didn't mention if the card has an AF. If not, IMHO you might want to SD the card and run a recurring monthly payment (such as a cell phone bill) through it to keep it active.
02-27-2010 07:50 AM - edited 02-27-2010 07:53 AM
02-27-2010 08:07 AM
Hi - thanks, that's my plan, as you say 100% of zero is zero. Update: I just called Cap One out of curiosity to see what they could do for me right now. Their answer is there's nothing they can do at this time but enroll me in a cash rewards program, to which I said no. It just makes me a little p**d that good people who have tried to be good consumers get jacked. I did ask if there was any penalty for non-use or low-use, and there isn't, I just have an annual fee of $59 for the privilege of their credit, so I guess I should be happy that I HAVE credit, eh?
I have a Cap 1 with an AF of $20. It's my oldest card at 12 years so I'm not going to close it over $1.66 a month. If it was $59? I don't know. I would probably still keep it because it is my oldest. Only you can decide about yours.
02-27-2010 08:38 AM
A few years ago, I had the same issue. I started out with a capital one card, but I really got tired of how they treated me when I called. After getting a few prime cards, I dumped them at the one year mark. Last time I checked, my equifax score was somewhere around 730-40, so I don't think it has affected my credit score all that much.
I'd recommend pulling the plug on capital one as long as you have a few decent prime cards. My experience with them was terrible. I wouldn't recommend anyone do business with that company. And since you're paying an annual fee, that's even more reason to dump them.
02-27-2010 08:45 AM
02-28-2010 05:37 AM
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). 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.