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To keep or cancel Secured Card

New Contributor

To keep or cancel Secured Card

Hey all! I have a capital one secured card I've raised the limit to about 1500.... I've owned the card for about 1 year and a few months. I'm debating if I should increase the limit to the MAX 3000 or cancel it since I've been approved for Chase Freedom 2K, Discover IT 1K and Cap one cash back a little sub prime at $500..... What do u think
Cap One Cash Back UnSecured: 1.5K
Chase Freedom: 2k
Chase Slate: 2k
Discover IT: 1K.
AmEx Green: NPSL
Message 1 of 12
11 REPLIES
Established Contributor

Re: To keep or cancel Secured Card


NewBreed wrote:
Hey all! I have a capital one secured card I've raised the limit to about 1500.... I've owned the card for about 1 year and a few months. I'm debating if I should increase the limit to the MAX 3000 or cancel it since I've been approved for Chase Freedom 2K, Discover IT 1K and Cap one cash back a little sub prime at $500..... What do u think

I guess that's really up to you, if you can use your deposit back and don't want to pay the AF coming up, and you're not really using it, then I would say cancel.

 

I was actually having the same delima recently on my cap1 secured card. But I decided to keep it and let it age for 1 more year. I realize that closing a card doesn't effect your AAoA immediately, but I kept it for a couple of reasons.

 

1. I have myFICO services auto paid on it, and don't want to give card numbers over the phone to switch payment methods.

2. I recently closed The Buckle store card this year and don't want to close another card that close to the other one.

3. The AF is quite small and the card has come in handy a couple of times when I was waiting for other cards statements to cut.

 

So I guess it really depends on if you're seeing a benefit and how the card fits into your plans whether or not you should close it.

 

Most will say, if it has an AF, then close and if not, then sock draw.

 

Hope these ramblings help in some way. Smiley Happy


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Message 2 of 12
Senior Contributor

Re: To keep or cancel Secured Card


NewBreed wrote:
Hey all! I have a capital one secured card I've raised the limit to about 1500.... I've owned the card for about 1 year and a few months. I'm debating if I should increase the limit to the MAX 3000 or cancel it since I've been approved for Chase Freedom 2K, Discover IT 1K and Cap one cash back a little sub prime at $500..... What do u think

When did you get the Captial One cash back and what was the secured card limit at the time?

Message 3 of 12
Established Contributor

Re: To keep or cancel Secured Card


NewBreed wrote:
Hey all! I have a capital one secured card I've raised the limit to about 1500.... I've owned the card for about 1 year and a few months. I'm debating if I should increase the limit to the MAX 3000 or cancel it since I've been approved for Chase Freedom 2K, Discover IT 1K and Cap one cash back a little sub prime at $500..... What do u think

IMO i think you should close your secured card and out the deposit money to better use.  The secured card has served it's purpose and you now have some great cards that should grow with you. 

Message 4 of 12
Senior Contributor

Re: To keep or cancel Secured Card


NewBreed wrote:
Hey all! I have a capital one secured card I've raised the limit to about 1500.... I've owned the card for about 1 year and a few months. I'm debating if I should increase the limit to the MAX 3000 or cancel it since I've been approved for Chase Freedom 2K, Discover IT 1K and Cap one cash back a little sub prime at $500..... What do u think

Since you've had the secured card slightly over a year, I assume you just paid the Annual Fee.

 

$1500 is about 1/3 of your total credit right now. If you need that money for something, thats one thing. But interest rates these days are practically zero, so getting your deposit back and putting it into a savings account wouldn't get you very much.

 

If it was me, I'd keep it as it is, and cancel the card about a month before the next AF is due. In the meantime, use that credit limit to help improve your credit utilization percentage, and thus improve your Fico scores, with the short term goal being to request CLI's on the other accounts in 6+ months or more (ideally just before you need to close the secured card to avoid the next AF).





TU-8: 755 EX-8: 771 EQ-8: 763    EX-8 Bankcard: 815    
TU-9 Bankcard: 795 EQ-9: 822
   EX-98: 735 EQ-04: 730
Total $437,800
Message 5 of 12
New Contributor

Re: To keep or cancel Secured Card

I think I'm going to increase the limit to 3000 and then use it for the next year, then cancel it before the AF is due... I don't really need the money until end this year so I'll prob just let it report with 3K and very low util then kill it end of this year and get my money back..... So who ever asked me about my limit and cap one cash back.... On my secured card I've had a 1500 limit for a while now and back in January I was approved for cap one cash back for only 500
Cap One Cash Back UnSecured: 1.5K
Chase Freedom: 2k
Chase Slate: 2k
Discover IT: 1K.
AmEx Green: NPSL
Message 6 of 12
Frequent Contributor

Re: To keep or cancel Secured Card

That seems pretty dirty on their part. It seems pike they just want to keep your deposit for longer by not giving you a larger limit on the new account.
Message 7 of 12
New Contributor

Re: To keep or cancel Secured Card

Well they have to give me my deposit back correct?
Cap One Cash Back UnSecured: 1.5K
Chase Freedom: 2k
Chase Slate: 2k
Discover IT: 1K.
AmEx Green: NPSL
Message 8 of 12
Frequent Contributor

Re: To keep or cancel Secured Card

I guess I'm saying that they have 1500$ of yours right now yet they only gave you a 500$ limit on a new account. They probably know that if they gave you a 1500 cl you would close the secured account and take your cash back. So perhaps they gave you a low cl in hope that you would keep the secured account open.
Message 9 of 12
Frequent Contributor

Re: To keep or cancel Secured Card

Yes you can always get your deposit back by closing the account.
Message 10 of 12