topic Re: Credit One in Credit Cards

Credit One

Anonymous — Thu, 04 Dec 2014 16:22:10 GMT

HI, I'm new here! Hello everyone!

A lil background:

I'm in the market to apply for a mortgage next year in July coming off a chapter 7 bkrtcy over 3 years ago. I have a Credit One card that I have had over a year to establish my credit. But I am sooo over them! I got married last year and they wanted to charge me a fee to change my name with them??! So I want to get rid of them! I have a Capital One Credit card now with $1800 limit and I am good with that. I owe Credit one $200 dollars. So my question is...do I pay them to a 0 balance then cancel immediately or should I let the 0 balance show for a few months or cancel the card then pay it off?

Any help is greatly appreciated! Thanks!

Re: Credit One

tcbofade — Thu, 04 Dec 2014 16:26:03 GMT

It honestly doesn't make much difference...pay it off, then close it, or close it then pay it off....doesn't matter what order you do it in, but DO close it.

Re: Credit One

Anonymous — Thu, 04 Dec 2014 16:29:25 GMT

I would pay the card to a 0 balance, maybe carry the 0 balance for a month or two to make sure it reports that way and then close it. That way you know they reported it the right way and you dont owe any interest. Credit one adds the interest when your statement cuts so even though you paid your balance off you still might owe interest for that month. Also when you do close it make sure you get a letter from Credit One stating the account was closed and with a 0 balance. I have heard of Credit one trying to be sneaky and reporting a small balance when someone closed the card when it was actually at a 0 balance.

Re: Credit One

Anonymous — Thu, 04 Dec 2014 16:31:04 GMT

I also have a credit one that I got in August and plan on closing it in July (before my next AF is due) so I have also been looking into the best way to close it....

Re: Credit One

Anonymous — Thu, 04 Dec 2014 16:32:53 GMT

If you're past the year mark and being charged an annual fee monthly, you need to call and and get a 14 day pay off amount and mail them the payment (certified mail).

They charge interest daily and the monthly fee hits on statement day... and you can't "over pay" on your account to make sure there's no interest.

If less than a year... pay to zero, let it sit for two months to make sure it stays that way, then cancel.

Re: Credit One

Anonymous — Thu, 04 Dec 2014 16:35:02 GMT

Thanks for your input! I will pay it off...give it a month and close it the end of this month. I can't wait!

Re: Credit One

Anonymous — Thu, 04 Dec 2014 16:37:56 GMT

@Anonymous wrote:
If you're past the year mark and being charged an annual fee monthly, you need to call and and get a 14 day pay off amount and mail them the payment (certified mail).

They charge interest daily and the monthly fee hits on statement day... and you can't "over pay" on your account to make sure there's no interest.

If less than a year... pay to zero, let it sit for two months to make sure it stays that way, then cancel.

Ok this is the route I will take...to make sure I cover myself! Thanks!

Re: Credit One

Anonymous — Thu, 04 Dec 2014 16:46:18 GMT

Ok, quick question. My due date is 12/14.....If I pay balance and close today, I should not be charged interest right? Unless they try to be sneaky....But I will request they send me a letter to show I closed the account today.

Re: Credit One

bdhu2001 — Thu, 04 Dec 2014 16:49:12 GMT

@Anonymous wrote:
HI, I'm new here! Hello everyone!

A lil background:

I'm in the market to apply for a mortgage next year in July coming off a chapter 7 bkrtcy over 3 years ago. I have a Credit One card that I have had over a year to establish my credit. But I am sooo over them! I got married last year and they wanted to charge me a fee to change my name with them??! So I want to get rid of them! I have a Capital One Credit card now with $1800 limit and I am good with that. I owe Credit one $200 dollars. So my question is...do I pay them to a 0 balance then cancel immediately or should I let the 0 balance show for a few months or cancel the card then pay it off?

Any help is greatly appreciated! Thanks!

If you're wanting to build up to a mortgage, one credit card isn't enough. If there is no fee associated with the card, keep it. I don't recommend paying interest. So if you can pay off the $200, pay them off. Use your credit one card for an auto pay of a small bill like water. Pay the credit one automatically so that you don't pay interest.

If they charge to change your name, don't change the name on the card. Let that be the card you use over the Internet and to auto pay bills.

Rebuilding credit is a journey, not a sprint. Take the time to make the right decisions for the outcome you'd like to obtain. You didn't mention the credit limit on your Credit One card. Remember that you need to keep your utilization below 25% overall and below 25% on each individual card. If you can keep your utilization below 9%, it's even better.

Re: Credit One

Anonymous — Thu, 04 Dec 2014 16:53:58 GMT

@Anonymous wrote:
Ok, quick question. My due date is 12/14.....If I pay balance and close today, I should not be charged interest right? Unless they try to be sneaky....But I will request they send me a letter to show I closed the account today.

Incorrect. Credit One charges interest from date of purchase... it just doesn't post until your statement. If you pay the balance today, your next statement will show the interest compounded through today; still due and payable.

Re: Credit One

Anonymous — Thu, 04 Dec 2014 16:58:15 GMT

@bdhu2001 wrote:
@Anonymous wrote:
HI, I'm new here! Hello everyone!

A lil background:

I'm in the market to apply for a mortgage next year in July coming off a chapter 7 bkrtcy over 3 years ago. I have a Credit One card that I have had over a year to establish my credit. But I am sooo over them! I got married last year and they wanted to charge me a fee to change my name with them??! So I want to get rid of them! I have a Capital One Credit card now with $1800 limit and I am good with that. I owe Credit one $200 dollars. So my question is...do I pay them to a 0 balance then cancel immediately or should I let the 0 balance show for a few months or cancel the card then pay it off?

Any help is greatly appreciated! Thanks!
If you're wanting to build up to a mortgage, one credit card isn't enough. If there is no fee associated with the card, keep it. I don't recommend paying interest. So if you can pay off the $200, pay them off. Use your credit one card for an auto pay of a small bill like water. Pay the credit one automatically so that you don't pay interest.

If they charge to change your name, don't change the name on the card. Let that be the card you use over the Internet and to auto pay bills.

Rebuilding credit is a journey, not a sprint. Take the time to make the right decisions for the outcome you'd like to obtain. You didn't mention the credit limit on your Credit One card. Remember that you need to keep your utilization below 25% overall and below 25% on each individual card. If you can keep your utilization below 9%, it's even better.

My credit limit is $650.00. They are charging me an Annual Membership fee which is Total ($99.00) but they break up in payments of $8.25/per month. And interest on my balance. I only have this credit card and a Capital One card with $1800 limit which I am paying down as I have a $1400 balance. I have a car payment, student loans and Care Credit account I am paying off $4000 limit...paid down to $2500 as of right now. That's it.

So many good ideas here. But do you think I can do away with this card and get another one with better terms and still be in the running for a mortgage approval?

Re: Credit One

Anonymous — Thu, 04 Dec 2014 17:01:54 GMT

f your due date is 12/14 and you paid today then MOST Credit Card companies will NOT charge you interest as long as the purchase was made within the grace period (which is normally from the time the purchase was made to your first duedate, anything you owe still after your first due date you will be charged interest for) but thats with MOST CC companies

Credit One is different. Every account is different with them but majority of accounts with Credit One do NOT have a grace period and they start charging you interest from the day the purchase was made and charges it to your account once the statement cuts for the month before So say you made a purchase on 11/1 and you had a 0 balance before and your statement cut on 11/17 with the new purchase and a due date of 11/14 most companies will give u till 11/14 to pay it off before charging interest Credit one starts charging interest since the purchase was made on 11/1. I would definitely call and ask them like the other poster said. Credit one can be hard to deal with sometimes.

Re: Credit One

Anonymous — Thu, 04 Dec 2014 17:05:26 GMT

If you only have one Cap One card you could most likely get approved for a 2nd cap one everyone I have known was approved for a cap one platinum and quicksilver One at the same exact time. They pretty much have the same underwriting standards. Im not sure which one u have now but the quicksilver ONE has cashback rewards and 0% interest till Sept 2015 plus only a $39 AF. But I would pull your reports first and see what your score is because you might qualify for better cards then cap one to replace your credit one.

Re: Credit One

Anonymous — Thu, 04 Dec 2014 17:06:58 GMT

@Anonymous wrote:
@Anonymous wrote:
Ok, quick question. My due date is 12/14.....If I pay balance and close today, I should not be charged interest right? Unless they try to be sneaky....But I will request they send me a letter to show I closed the account today.
Incorrect. Credit One charges interest from date of purchase... it just doesn't post until your statement. If you pay the balance today, your next statement will show the interest compounded through today; still due and payable.

Ok, that makes sense. Thanks!

Re: Credit One

Anonymous — Thu, 04 Dec 2014 17:06:59 GMT

Sorry in my above post the due date is suppose to be 12/14 not 11/14 and im on a cell so I cant edit it

Re: Credit One

CreditDunce — Thu, 04 Dec 2014 20:58:54 GMT

@Anonymous wrote:
My credit limit is $650.00. They are charging me an Annual Membership fee which is Total ($99.00) but they break up in payments of $8.25/per month. And interest on my balance. I only have this credit card and a Capital One card with $1800 limit which I am paying down as I have a $1400 balance. I have a car payment, student loans and Care Credit account I am paying off $4000 limit...paid down to $2500 as of right now. That's it.

So many good ideas here. But do you think I can do away with this card and get another one with better terms and still be in the running for a mortgage approval?

Back in 2009, I qualified for a mortgage with best rates with only one open credit card. So you don't need to have more than one open credit card to get a mortgage. However, having at least three credit cards makes it easier to max out your credit score.

Personally, I think your installment loans added to the Cap1 and Care credit cards will be enough for a mortgage. However, if you want the third open revolving credit line, I would do the shopping card trick. There are several shopping cart trick cards that are fairly easy to qualify for. Just make sure it is for a store you shop at. Your score may still take a slight hit due a reduction in AAoA, but at least you wouldn't take a hit for the new INQ/HP.

If you are going to be applying for a mortgage in 7-8 months, you should be careful about applying for more credit.

Re: Credit One

9CLINE — Thu, 04 Dec 2014 22:02:41 GMT

Get rid of it, close it and move on it has served it's purpose. Plus, you'll get the good rating for another 10 years on your credit report. These cards aren't mean to be kept a long time,they get you started, you get other better cards and move on.... Good Luck....

Re: Credit One

bdhu2001 — Thu, 04 Dec 2014 22:31:54 GMT

@Anonymous wrote:
@Anonymous wrote:
Ok, quick question. My due date is 12/14.....If I pay balance and close today, I should not be charged interest right? Unless they try to be sneaky....But I will request they send me a letter to show I closed the account today.
Incorrect. Credit One charges interest from date of purchase... it just doesn't post until your statement. If you pay the balance today, your next statement will show the interest compounded through today; still due and payable.

Wow!!! Thanks for that information. This doesn't sound like a card worth using or having. With a $99 AF and instant interest charges, there doesn't seem to be any point in keeping the Credit One card.

Re: Credit One

chalupaman — Fri, 05 Dec 2014 01:10:12 GMT

My suggestion. Dump the card as soon as you can and get some real prime cards if you want once you're done getting that mortgage.

Re: Credit One

juggalo9er — Fri, 05 Dec 2014 02:12:46 GMT

@Anonymous wrote:
I also have a credit one that I got in August and plan on closing it in July (before my next AF is due) so I have also been looking into the best way to close it....

quickly!