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05-15-2013 11:22 AM
Been working on the rebuild process for about a year...have a $400 Cap1 secured card ($300 secured, $100 unsecured) opened a year ago, bought a truck about 6 months ago on a crap loan, and recently refi'ed it to a not so crap loan, have a Fingerhut account at $200 a month ago, zero lates on all accounts, and on a whim applied for a Cap1 unsecured card yesterday and got approved at $500 on their Cash card (I'm astounded, as they say the card is for those with excellent credit, which I know for a fact isn't me yet, lol). Since I got approved for that card, I also applied for the Shell gas card, and got the 'we'll give you a decision within 30 days", which I assume will mean a denial letter in the mail in a couple weeks, lol. I figure the reason I got approved with Cap1 has more to do with the year of history with them, not so much with improved credit.
While I obviously still have a long way to go, and I have zero intentions of cancelling the secured card any time soon, I'm curious about when people decide to cancel the secured cards. I'm a little concerned about the hit that my AAoA will take, and frankly I figure the cost of the annual fee with the Cap1 secured really isn't much to me. This year they actually gave me an $18 credit without me even asking (only reason I even knew was that I saw it on the statement), so the AF ended up being $11. To me that's a tiny amount to pay to continue to improve my credit. I'm not hurting in any way by having the $300 tied up with them (in fact, I pretty much even forgot about it until last night).
So, given that, do I wait until I can get a couple more cards, then cancel the secured? Since it's not costing me much, do I just pocket the thing, charge a tank of gas on it occasionally to keep it active and reporting a positive for another few years until the AAoA hit will be minimal? If I end up with a couple cards with considerably higher limits in the future, does this one low limit card bring down the score?
05-15-2013 12:43 PM
05-15-2013 12:59 PM
I had a USAA secured card with $1000 CL and a USAA Rewards card with $3000 CL. I called them to ask if I could just combine the limits to $4k on the Rewards card and possibly give my deposit back if possible. They said it was not possible to do this. So I told them to close the secured card and then, while still on the phone, asked for a CLI on the rewards card. They approved me for $4500. Go figure.
05-15-2013 01:31 PM
05-15-2013 01:34 PM
05-15-2013 01:56 PM
Dave - did you open them at the same time or was the unsecured behind? I'm curious as I literally JUST got an unsecured (through cap one, $1,700) and I had that secured maxed at $3K.. I still have the secured, for AAoA reasons only, and am more/less in the same boat as the OP.
I started rebuilding with a USAA secured ($1000). I used that for about 4 months and then applied for USAA Rewards. Kept both for about 7 to 8 months, but ended up closing secured (as I mentioned in an earlier post) before the annual fee.
Closing your secured card won't have any effect on your AAoA.
05-15-2013 02:16 PM
05-15-2013 02:19 PM
05-15-2013 02:24 PM
Closed accounts stay on the report for 10 years. During this time, they still contribute to AAoA.
Most people have more than a few different aging accounts over a 10 year span of time that make the effect of a 10-year old account falling off pretty negligible.