I financed a motorcycle on a Kawasaki-branded credit card (issued by Capital One). It shows up on my reports as a revolving charge account, not an installment loan - which is why I posted this in the credit card forum.
It has a credit limit of $9000, and my high balance was $5K. I made all scheduled payments on time and just paid it off with a large final payment. The account now shows a zero balance, but it hasn't hit my credit reports yet.
This card can only be used to purchase at a Kawasaki dealer. I have no intention to use it again and this card will not pose any temptation for me.
What should I do next? The two options that occur to me are:
1. Close the card immediately after it shows as a zero balance on my credit reports
Downside: I'll lose the $9K of available credit for scoring purposes, but my overall utilization will still be under 10%.
2. Keep the card open for a while with a zero balance on it, and close it after a few months (or never close it/wait for them to close it)
Potential issue: I've heard that Cap One has a tendency to close down the credit limit after you've paid off the balance and have no activity for a while. If they shrink it to $500 or some low amount like that, could it hurt my scores?
Any input/suggestions would be appreciated. Thanks in advance.
