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Question about closing Credit One

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Anonymous
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Question about closing Credit One

Next week it should be reporting the 6th month. At that point I should have a score. The next oldest card just hit the 4th statement. If we close the Credit One before the second card reports the 6th statement will that put me back to no score or will it matter? Want to close the card but don't want to mess up and hurt myself in the process. I'm thinking it will be okay.
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Anonymous
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Re: Question about closing Credit One

If your oldest card is 6 months and your second oldest card is 4 months I would highly recommend you hold on to the credit one card until at least the end of the eleventh month. Dumpping it then before the new annual fee kicks in. Call credit one and ask them to wave the annual fee then if you pay off the card and throw the card in the sock drawer it would not hurt you to have. In all reality the small monthly annual fee is worth the price for the credit points you will gain, if you use the card right. 

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Anonymous
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Re: Question about closing Credit One

It's been paid off since November. Just want to make sure there is plenty of time before the annual fee kicks in again in case there are issues. Hubby and I each have 3 Cap1 cards also plus some store cards so UTI isn't an issue.
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Anonymous
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Re: Question about closing Credit One

Ask credit one to remove there anual fee, if they agree hold on to it until the new annual fee is about to kick in then dump it. the longer you keep open positive credit lines  the better.  In my experience with credit one they are willing to remove the annual fees if you talk about closing the account.  When you look for new credit the score will only be one factor the other will be credit history the longer the better.

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Anonymous
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Re: Question about closing Credit One


@Anonymous wrote:
Next week it should be reporting the 6th month. At that point I should have a score. The next oldest card just hit the 4th statement. If we close the Credit One before the second card reports the 6th statement will that put me back to no score or will it matter? Want to close the card but don't want to mess up and hurt myself in the process. I'm thinking it will be okay.

My feeling is that it won't make a difference. No legitmate reason to keep it open longer than is convenient for you, IMHO. Two months difference in the age of your oldest active account just doesn't amount to a hill of beans in the long term picture, and its not worth doing business with Lucifer, AKA Sherman Capital, owner of Credit One. Sherman Capital has many other names you may have heard of, such as LVNV. They ruin people with one hand, while offering salvation with the other. No thanks, I will not do business with such a company.

Message 5 of 7
Anonymous
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Re: Question about closing Credit One

Norman, you are surley free to your opinion. I dont know why you are so anti credit one, I do agree they are preditory lenders but they often offer people credit cards at lowwer rates then Capital one. I know they charge an annual fee but I also know there willing to waive there fees. They do offer low credit limits but if managed properly they help improve your credit, while rebuilding. Would you really tell someone with only two credit cards to close one of there only two accounts in hopes they may get a second capital one card that they have not yet gotten. I dont in anyway think credit one is a good company, but they have helpped alot of people rebuild. You do have to manage your credit closely and pay your bill early to avoid being billed to make a payment. I personly would direct 100 people to credit one before I would direct one person in the direction of First Premier bank.  Having bank cards gives more points then secured or store cards, so again I would say credit one before First Premier, secured cards that dont graduate, or store credit cards. In the 700 in 24 month plan credit one is a big part of that formula. Now with that said I do perfer Capital one to credit one, and capital one will offer you much better cards as your credit improves. 

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Anonymous
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Re: Question about closing Credit One


@Anonymous wrote:

Norman, you are surley free to your opinion. I dont know why you are so anti credit one, I do agree they are preditory lenders but they often offer people credit cards at lowwer rates then Capital one. I know they charge an annual fee but I also know there willing to waive there fees. They do offer low credit limits but if managed properly they help improve your credit, while rebuilding. Would you really tell someone with only two credit cards to close one of there only two accounts in hopes they may get a second capital one card that they have not yet gotten. I dont in anyway think credit one is a good company, but they have helpped alot of people rebuild. You do have to manage your credit closely and pay your bill early to avoid being billed to make a payment. I personly would direct 100 people to credit one before I would direct one person in the direction of First Premier bank.  Having bank cards gives more points then secured or store cards, so again I would say credit one before First Premier, secured cards that dont graduate, or store credit cards. In the 700 in 24 month plan credit one is a big part of that formula. Now with that said I do perfer Capital one to credit one, and capital one will offer you much better cards as your credit improves. 


Yes, I would tell them to close it, but I would tell them to open another card (secured if necessary) FIRST, because there are ALWAYS better alternatives than the predatory lenders, particularly one owned by a predatory debt buyer. There are at least two federal credit unions that ANYONE can join, that offer secured credit cards at VERY attractive terms. Secured cards are not scored lower than unsecured bank cards - thats a credit myth:

http://www.cardratings.com/does-an-unsecured-card-build-credit-faster-than-a-secured-card.html

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