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New Member
kus23
Posts: 3
Registered: ‎11-04-2012
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Secured Capitalone Mastercard - Help

[ Edited ]

Hello,

Two years ago I applied for this card with $200 down, six months later they increased my CL to $300. I tried many times to unsecure this card, since it helped me get my citi and chase card (both unsecure) with good CLs. My credit is good and stable now, but I don't use the the secured capital one card. The turn off is that I need to pay $24 every year for this card that I don't use at all.

 

The reps told me that this card doesn't graduate, and I remember when I applied the deal was that this card can be unsecure in 18 months. So, what can i do? The rep from CapitalOne say that I can cancel this card and I apply to an unsecure card from them. I told the rep that it is ridiculous to cancel my card which maybe will lower my credit socre and apply for another card for a hard pull. (double risk)

 

What do you guys think? Do I close this card and ask for my $200? Do you think this will affect my credit score seriously? I'm fine with two cards: citi forward and chase freedoom, there is no point to use a secure card anymore. Please help.

Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011
0

Re: Secured Capitalone Mastercard - Help


kus23 wrote:

Hello,

Two years ago I applied for this card with $200 down, six months later they increase my CL to $300. I tried many times to unsecure this card, since it helped me get my citi and chase card (both unsecure) with good CLs. My credit is good and stable now, but I don't use the the secure capital one card. The turn off is that I need to pay $24 every year for this card that I don't use at all.

 

The reps told me that this card doesn't graduate, and I remember when I applied the deal was that this card can be unsecure in 18 months. So, what can i do? They rep from CapitalOne say that I can cancel this card and I apply to an unsecure card from them. I told the rep that it is ridiculous to cancel my card which will be a hard pull to apply for another card for a second hard pull.

 

Do I close this card and ask for my $200? Do you think this will affect my credit score? I'm fine with two cards: citi forward and chase freedoom. Please help.


I would axe it, it's served its purpose. It was advertised like that and they changed their policy. Some real BS.

 




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
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New Contributor
Paperboy999
Posts: 73
Registered: ‎10-06-2012
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Re: Secured Capitalone Mastercard - Help

Close it. I believe it will help your AAoA for 7 years until it drops off by then hopefully it won't matter.
11/09 EX 564
10/12 EX 673 TU 674
1/13 TU 686
2/13 EX 701
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Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011
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Re: Secured Capitalone Mastercard - Help


Paperboy999 wrote:
Close it. I believe it will help your AAoA for 7 years until it drops off by then hopefully it won't matter.

Closed accounts stay on your credit reports for 10 years then drop off.

 




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
New Member
kus23
Posts: 3
Registered: ‎11-04-2012
0

Re: Secured Capitalone Mastercard - Help


LS2982 wrote:

kus23 wrote:

Hello,

Two years ago I applied for this card with $200 down, six months later they increase my CL to $300. I tried many times to unsecure this card, since it helped me get my citi and chase card (both unsecure) with good CLs. My credit is good and stable now, but I don't use the the secure capital one card. The turn off is that I need to pay $24 every year for this card that I don't use at all.

 

The reps told me that this card doesn't graduate, and I remember when I applied the deal was that this card can be unsecure in 18 months. So, what can i do? They rep from CapitalOne say that I can cancel this card and I apply to an unsecure card from them. I told the rep that it is ridiculous to cancel my card which will be a hard pull to apply for another card for a second hard pull.

 

Do I close this card and ask for my $200? Do you think this will affect my credit score? I'm fine with two cards: citi forward and chase freedoom. Please help.


I would axe it, it's served its purpose. It was advertised like that and they changed their policy. Some real BS.

 


 

Exactly, the lady told me that they changed their policy. I wonder how many points I will lose if I close it. The balance is $0 for the last 4-6 months.

 

 

New Member
kus23
Posts: 3
Registered: ‎11-04-2012
0

Re: Secured Capitalone Mastercard - Help

So guys,do you think this will affect my credit report status if I want to get a loan to buy a car? I read somewhere that car dealers hate credit reports with closed accounts :smileysad:

Valued Contributor
SnackTrader
Posts: 1,566
Registered: ‎09-15-2012
0

Re: Secured Capitalone Mastercard - Help

Car dealers and their lenders primarily care about your history with past car loans.  In fact, many use auto-enhanced FICOs in order to give more weight to the auto installment history.  Obviously, revolving history will also play a part, but as long as you have no significant baddies on revolving accounts the dealers/lenders won't pay too much attention to those.

 

To answer your question specifically, every lender is different in how they review a credit report, but I have never heard of a lender denying a loan or giving a higher APR due to closed accounts.  In fact, since you are the one planning to close the account, your credit report may indicate "closed by consumer" which may be viewed more favorably.  Also, many car lenders also approve/deny on scores alone (not necessarily manual review) and the status of closed accounts won't factor into your scores much since the tradeline continues to report for 10 years.  It will only affect utilization, and that effect is minimal with only $300...

 

Hop on over to the Auto Loans section of the forums if you have other questions.  But closing the card should have minimal effect on your auto loan.


In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
Senior Contributor
Wolf3
Posts: 3,197
Registered: ‎01-24-2010
0

Re: Secured Capitalone Mastercard - Help

Close the account before the AFis due.   It will not hurt your score at all.   You will have to wait 60 days to get your money back.


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