Should I close my Capital One Secured?

[Ortz33__]

Here are my tradelines both negative and positive. I want to garden, pay down my debt and app for a Barclay Apple Card by end of year and possibly one other one. Any reccomendations on that card?  I am currently at 617 FICO with high utilization but came from 530 just a year ago. YAY!  Persistence pays off.  

CapOne only gave me a $300 bump 6 months into my secured card and now i am at year and 3 months.  This card bothers me because it looks like a credit card and with my balance below and limit, makes it look like I actually OWE that money when it's really my cash. If i closed it, this would report as 0, correct?  I am a bit overextedned right now and can't pay it down as I know if I did it would help my utilization.  I like that it gives me a higher limit card but I am not sure if it's worth keeping open. Any thoughts?

THANKS!! You all have inspired me to take come this far! 

Inquiries: 6 in last 2 years       Lates/Derogs: NONE in last 2 1/2 years

Filene's Charge off $5002006

Macy's Charge off $3502006

Chase Charge off $5202006

Orchard Charge Off $3242006

Hooters

1200/1500 opened this march

Capital One 

100/300 opened in 2008

First Premier

100/300 opened in 2008

Capital One Secured 

2000/2300 opened in 2010, passed my one year anny

Orchard Bank

500/700opened in 2010 

Kay

100/300 opened in 2011

Raymour

2000/2700opened in 2011

[Ortz33__]

Sorry. those negative tradelines should say the year 2006.  

I should also add that I have a CAPONE auto loan with a balance of 25000 and 3 on time payments that I just got.  at the time my score was 650 but the high utilization has brought it down.  My score predictor on FICO said it would go up to around 680 if I paid down all my debt.... 

[Ortz33__]

680 if i paid down all revolving debt.  

[Wolf3]

I would close it unless you can pay all your debt down soon.   

I would wait to apply for any more credit until you are paid down.   You will have much better success then.

[Ortz33__]

where do you suggest going if i can pay it all down within 6 months with 5 inquiries?   i am probably going to app for a barclay card, probably priceline or apple and possibly chase.  i am looking for a 3-5k limit.  that kay card is actually a 3k limit and im expecting an increase soon.  

[Wolf3]

Getting your utilization down will make a big difference in your odds of success.    Better if you can wait to apply.     I think it is better to have open CC with larger limits when you apply so It may be worth it to keep it open. 

You might consider trying for a better unsecured Cap1 card to replace the secured, when you utilization is better.  

I also have a Cap1 secured for 13 months, with 2200 deposit 300 unsecured.   I just got my utilization down to 30% and applied for Cap1 cash rewards card.   They gave me $3K limit (very pleased).   So I will close the unsecured shortly.  

Of course, it costs you more interest to keep it open, so it is hard to say if it is worth it.   Maybe you should decide based on if you want to continue business with Capital One.    If not, I'd say close it and save some money.   It will still be on your report and a good account for 10 years.

[kjm79]

When you close that card, you will lose the $2300 reported limit.  Without paying down more of the other cards, you are increasing your utilization.  Now if you close it and take your refunded deposit and apply it towards your remaining card, that would be the best route.  I would apply the returned deposit as follows (assuming the deposit is $2k)

Hooters PAY OFF

1200/1500 opened this march

Capital One PAY OFF

100/300 opened in 2008

First Premier PAY OFF

100/300 opened in 2008

Orchard Bank  PAY OFF

500/700opened in 2010 

Kay PAY OFF

100/3000 opened in 2011

Raymour

2000/2700opened in 2011

After doing that, you will only have ONE card reporting a balance at approx. 24% util instead of 6 accounts with a util of 69%.  BUT, the payments that were going to the other cards can now be applied to this card and help you bring that balance down much quicker.  Remember FICO scores overall and individual util.  Having almost all your cards maxed is killing your score.  That is how I would attack this debt.  AND THEN, I'd app for a barclays card.

Edited: to reflect actual limit of Kay card and revised util %. 

[Ortz33__]

thanks for all of the help! really appreciated.