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Capital One tripling rate%; close the card?

New Visitor

Capital One tripling rate%; close the card?

CapitalOne is moving my rate from 2.9% to 9.9% and I have the option to close the crad and continue to pay off the balance at the 2.9% rate. I'm trying to understand the impact to my score if i close it out. Here's some relevant data:

 

total 3 CC's open 

total credit limit authorized = $ 39,000

total credit used = $ 15,500 

card in question ($15k limit, used $12.5k)

 

My interest payments will rise a lot and I'm trying to determine if the impact to my FICO score will be big enough to consider not closing the card, and just paying the higher interest.

Message 1 of 3
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Senior Contributor

Re: Capital One tripling rate%; close the card?


scoremystery wrote:

CapitalOne is moving my rate from 2.9% to 9.9% and I have the option to close the crad and continue to pay off the balance at the 2.9% rate. I'm trying to understand the impact to my score if i close it out. Here's some relevant data:

 

total 3 CC's open 

total credit limit authorized = $ 39,000

total credit used = $ 15,500 

card in question ($15k limit, used $12.5k)

 

My interest payments will rise a lot and I'm trying to determine if the impact to my FICO score will be big enough to consider not closing the card, and just paying the higher interest.


 

I strongly advise finding other ways to get that balance paid down, not transferred or moved around but paid down, for both financial and FICO reasons.  If you do opt for closing the card, make sure you find out how they will report on your CRs, because if you are not allowed to place any more charges on that card they may report a limit equal to the current balance thus making it look like utilization on that card is 100 percent.  Utilization is a major factor in FICO scoring, so this could be a big big deal.

 

TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Message 2 of 3
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Regular Contributor

Re: Capital One tripling rate%; close the card?

Also,

 

the card you are using accounts for 38.5% of your total CL...

 

You might also want to consider how much it will impact your AAoA.

 

 

 

Message 3 of 3