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What will happen to my credit score?

Member

What will happen to my credit score?

Hello,

I am on my journey of rebuilding my credit. I opened 2 Capital One secured cards over 2 years ago, 1 Discover secured card last summer and recently 1 Self Lender small loan. Discover has just informed me that they will be returning my deposit since my account has remained in good standing. Discover also offers cash back and Capital offers zilch. I want to cancel the 2 Capital One cards- I can't even get a credit line increase with them. Is this a bad idea?
8 REPLIES
Established Contributor

Re: What will happen to my credit score?


msyoung2288 wrote:
Hello,

I am on my journey of rebuilding my credit. I opened 2 Capital One secured cards over 2 years ago, 1 Discover secured card last summer and recently 1 Self Lender small loan. Discover has just informed me that they will be returning my deposit since my account has remained in good standing. Discover also offers cash back and Capital offers zilch. I want to cancel the 2 Capital One cards- I can't even get a credit line increase with them. Is this a bad idea?

Kinda - before cancelling, take a trip through the Capital One Prequalifier and see if they'll just issue a new unsecured card to your now-better profile.  Then cancel.

 

Cap One is a great lender, but they have a nasty habit of keeping cards in the same bucket you opened them in - forever...so a significant change in your credit requires a new card before they'll treat you like your profile deserves

Message 2 of 9
Community Leader
Valued Contributor

Re: What will happen to my credit score?

I'd suggest getting 2 cards to replace the 2 secured cards before closing them. An unsecured Cap1 card is a good ideal since you already have an account with them.
Message 3 of 9
Valued Contributor

Re: What will happen to my credit score?

Go and do the cap one prequal. You very likely can get a Quick Silver with rewards and no annual fee. And yes, close the two secured cards. No, your AAoA won't be affected. 

 

What are your FICO scores?

11/2017: EX 704 | TU 720 | EQ 672 -- Starting (2/2016): 630 | 620 | 580 -- INQs: 17 | 26 | 28 (last 6 months: 5 | 2 | 6)
AMEX Delta: $10k, Marvel: $8k, Discover IT: $7.2k, AMEX BCE: $6k, Target MC: $5k, PayPal 2%: $8k, CO QS: $2.6k, Merrick: $1.6k, Barclay's NFL Rewards: $1k, CO BuyPower: $500. And a mix of well-loved store cards.
Message 4 of 9
Member

Re: What will happen to my credit score?

I didn't get approved through the Capital One prequalification. I guess I'll just hang on to the 2 cards.
Message 5 of 9
Established Contributor

Re: What will happen to my credit score?


msyoung2288 wrote:
I didn't get approved through the Capital One prequalification. I guess I'll just hang on to the 2 cards.

I'd recommend closing one of them, actually.  I recall a while back Cap One had a policy of only allowing a maximum of 2 subprime cards per person...it may be the case that they simply won't offer another since you already have 2

Message 6 of 9
Member

Re: What will happen to my credit score?

That makes sense. So my score won't be affected by closing 1?
Message 7 of 9
Community Leader
Valued Contributor

Re: What will happen to my credit score?

Only if it increases your UTI quite a bit since you'll be losing the available credit on that card. It won't affect your AAoA since it'll stay on your reports for another 10 years or so
Message 8 of 9
Highlighted
Established Contributor

Re: What will happen to my credit score?

I don't think so - especially if the one you close is not your oldest account...that said, eventually you are going to want to close both of these becasue they won't grow, so...best to worry less about short-term score impacts and more about your long-term plans

 

Good Luck!

Message 9 of 9