Too close or not to close

[vegas757]

Part of a dumb decision by me in 2006 during divorce, I soley took on almost 60k in credit card debt (8 accounts).  By 2007, this debt caught up to me and for about 3 months I missed payments on numerous accounts. Having no choice and not wanting to do a bankruptcy, I joined a debt management plan. Fast foward to the end of 2011, I was debt free. All the credit was paid back in full, even my car was paid off. Only problem, either I or the creditors had close my accounts. I did not have one open account. And with some history between 2007-2011 with many many lates on my reports, 4 of the 8 accounts were charge offs. So I was starting over again. This is my journey so far since becoming debt free in Dec 2011.

Feb 2012- Capitol One secured $400

Mar 2012- Credit Union Visa $2k

Aug 2012-closed on home loan for house, 205k, 3.75% (VA)

Aug 2012- Barclay Visa $2k

Aug 2012- Credit Union MC $5k

Sep 2012- Cap One MC 1.5k

Sep 2012- Kohls $400

Nov 2012 Auto loan, 4 yrs @ 2.9%

Aug 2013 Chase Freedom $3k 

Aug 2013 Delta Amex (unk yet)

I was proud of my score prior to 2007, upper 700's. In 2010 I was a 564, 2011 low 600's. Now I'm a 685. And climbing after I relax now.

Having somewhat started to build my credit up again, is it wise to keep that Cap One secured open? It's my oldest account but not by much. There's an annual fee of $39. Any thoughts? 

Oh, and if anyones thinking why would I want credit again after 60k, that was mostly on her. My UTI has not gone above15% and now sits at under 4. And after allowing the ex to be debt free in 2006, she filed for bankruptcy on 2009. Yep, credit card debt again. smh.

[longtimelurker]

I think it will be fine to close.  It will continue to report for about another 10 years, so you don't lose that history immediately.  In addition, you get whatever secured amount you put down, and no longer have to pay an AF.

You could contact the EO and ask them to convert to an unsecured card and try to get a CLI, but might not be worth the effort.

[09Lexie]

I'm a big proponent of keeping cards if there are no fees. Yes, you can try EO and ask for a fee waiver but sometimes it comes a time when you can let it go and move on. You've reestablished and unless you need the CL for util, I'd axe it.

[Open123]

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@vegas757 wrote:

Having somewhat started to build my credit up again, is it wise to keep that Cap One secured open? It's my oldest account but not by much. There's an annual fee of $39. Any thoughts? 

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No.

Since you have other unsecured cards, I can't think of a reason to pay a fee for a secured card that will never graduate.

[HiLine]

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@vegas757 wrote:

Having somewhat started to build my credit up again, is it wise to keep that Cap One secured open? It's my oldest account but not by much. There's an annual fee of $39. Any thoughts? 

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Keeping that card only helps if you foresee a need for a serious loan in the near future in which case every little bit helps a TON! Otherwise, close the card without regret