@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.
@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.
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 
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.
