Should I Cancel Credit One?

Anonymous · ‎02-10-2015

Hey there,

I currently have four cards with Capital One (two for business and two personal), as well as two Wells Fargo secured cards (one business, one personal), a new Banana Republic store card, and a Credit One card. I'm rebuilding my credit and all is going well. I've been thinking about getting rid of the Credit One card as I got it when no one else would give me a chance, but I don't need it anymore. Also, I've been stuck at a $400 CL for around a year now, while my other cards range from $500 to $2000. I have the Credit One card paid off and don't have any motivation to use it.

Although I want to close it and probably will, I'm wondering how other banks view the fact that I have a Credit One card when I apply. In other words, let's say I apply for a card through Chase, like a Freedom or United card; can they see my other accounts by name, and do you think they would look at it negatively, even though I have flawless history with Credit One? Does the presence of a Credit One card not look good to other, let's say "normal" card issuers?

Also on another note, does it hurt my score more when I have a high utilization over a longer period of time? I've had my balances high for a couple of months, but within a month or two they will be paid down to 20% or below.

Thanks!

Anonymous · ‎02-10-2015

@Anonymous wrote:
Hey there,

I currently have four cards with Capital One (two for business and two personal), as well as two Wells Fargo secured cards (one business, one personal), a new Banana Republic store card, and a Credit One card. I'm rebuilding my credit and all is going well. I've been thinking about getting rid of the Credit One card as I got it when no one else would give me a chance, but I don't need it anymore. Also, I've been stuck at a $400 CL for around a year now, while my other cards range from $500 to $2000. I have the Credit One card paid off and don't have any motivation to use it.

Although I want to close it and probably will, I'm wondering how other banks view the fact that I have a Credit One card when I apply. In other words, let's say I apply for a card through Chase, like a Freedom or United card; can they see my other accounts by name, and do you think they would look at it negatively, even though I have flawless history with Credit One? Does the presence of a Credit One card not look good to other, let's say "normal" card issuers?

Also on another note, does it hurt my score more when I have a high utilization over a longer period of time? I've had my balances high for a couple of months, but within a month or two they will be paid down to 20% or below.

Thanks!

Yes

YesYESYESYESYESYES!

Do cancel it.

Anonymous · ‎02-10-2015

In b4 Nixon.

Yes, close it. I don't think you need it anymore. You can easily build a strong credit profile with the cards you already have, and while I believe in keeping no AF credit lines open, Credit One is far from being a no AF card. It's far from being a no "anything" fee card, actually.

EDIT: DANG IT NIXON!

Anonymous · ‎02-10-2015

@Anonymous wrote:
In b4 Nixon.

Yes, close it. I don't think you need it anymore. You can easily build a strong credit profile with the cards you already have, and while I believe in keeping no AF credit lines open, Credit One is far from being a no AF card. It's far from being a no "anything" fee card, actually.

Nope.

But yes to everything else.

Anonymous · ‎02-10-2015

Haha, thanks guys. I think I will close them. I don't like them and think they're just... all kinds of bad. Plus, when I found out they charge for CLIs, that really turned me off.

My other cards are actually pretty nice for someone like me who's rebuilding. I'm getting cash back or some kind of rewards on all but my personal secured card from Wells Fargo. One of my CO cards is a Visa Signature with 2% cash back and no interest until June, plus a $500 bonus for spending $4500 in the first 3 months. It's my most recent (opened late Dec. 2014) and best one so far, also with the highest limit of $2000.

As for how other lenders view my profile... do you think getting rid of the Credit One card, despite removing $400 from my current combined $5700 in cards, will look more favorable to other banks like Chase or AMEX? My guess is the slightly reduced CL isn't a problem, but what about the absence of Credit One? Think just that could look good to other banks?

Anonymous · ‎02-10-2015

@Anonymous wrote:
Haha, thanks guys. I think I will close them. I don't like them and think they're just... all kinds of bad. Plus, when I found out they charge for CLIs, that really turned me off.

My other cards are actually pretty nice for someone like me who's rebuilding. I'm getting cash back or some kind of rewards on all but my personal secured card from Wells Fargo. One of my CO cards is a Visa Signature with 2% cash back and no interest until June, plus a $500 bonus for spending $4500 in the first 3 months. It's my most recent (opened late Dec. 2014) and best one so far, also with the highest limit of $2000.

As for how other lenders view my profile... do you think getting rid of the Credit One card, despite removing $400 from my current combined $5700 in cards, will look more favorable to other banks like Chase or AMEX? My guess is the slightly reduced CL isn't a problem, but what about the absence of Credit One? Think just that could look good to other banks?

I think you'll be fine. Just age your new accounts.

Anonymous · ‎02-10-2015

Subprime cards count just the same as prime cards for FICO scoring purposes, all else being equal. In theory, this means with automated applications it shouldn't make a difference if your card is a $10000 Ritz Carlton or a $10000 Credit One (if such a rainbow unicorn existed), everything else being equal. However, on manual review, I could see it making a difference to a credit analyst wondering about what an otherwise prime candidate is doing with a Credit One card. It may not be the final straw, but it is certainly something that would give me pause.

Anonymous · ‎02-10-2015

I would totally laugh if I was an analyst and saw a $10,000 CreditOne account...

"How much did you pay for THAT increase?"

Anonymous · ‎02-10-2015

@Anonymous wrote:
I would totally laugh if I was an analyst and saw a $10,000 CreditOne account...

"How much did you pay for THAT increase?"

Lmao. 500 easy payments of $19.95!

Anonymous · ‎02-10-2015

499 easy payments and one COMPLICATED payment.