topic Re: Closing Cap One Secured Card? in Credit Cards

Closing Cap One Secured Card?

Anonymous — Thu, 14 Jan 2016 14:47:51 GMT

I've been a bit afraid to close my Capital One Secured Card thinking I wll suffer dearly in regards to my credit score(s). Have had the card for exactly 1 year Jan 15 tomorrow. The invoice cuts on the 13th of each month. There is no balance on the card and it is rarely used anymore. It has $300 deposited for the secure limit.

Capital One gave a auto-cli in August 2015 making the limit $600.

Today, I have a Captial One Quicksilver One Mastercard ($0 / $1000), Chase Slate Visa ($0 / $3000), Chase Freedom Visa ($900 / $2200 -bought a Gold American Eagle and will pay the rest of this off in February), Discover It ($0 / $2250), PenFed Promise Visa ($0 / $3000), and Pay Pal Credit ($1300) - (which of course doesn't report to CRA's).

My scores are: Transunion (Capital One Credit Tracker = 741), Equifax (PenFed Tracker 707), and Experian (Chase Slate Tracker = 695)

(Discover Fico Score = 728)

Would I be alright if I go ahead and cancel the Capital One Secured Card? Being a 1 year credit baby, I want to try and not stumble.

Total Credit Available = $12,050. Total Credit Debt = $900 Total Utilization = 7%

Avaerage Age of Accounts = 6 months

Any advise and guidance will be greatly appreciated.

Re: Closing Cap One Secured Card?

Anonymous — Thu, 14 Jan 2016 15:21:52 GMT

Well, going by your average credit age of 6 months, if you were to take off your Capital One secure card (Which is basically 12 months now), the average age for your accounts will drop to ~4.8 months... not that far, and it would be back to ~6 months in Febuary. Since the average age is already well under 2 years, the drop in your score really shouldn't be that much although I'm pretty sure others here can concur.

The increase in your utilization won't be too much either, going from $12,050 to $11,450 and from 7% to 7.8%. Again, this shouldn't really affect the score too much.

Re: Closing Cap One Secured Card?

Anonymous — Thu, 14 Jan 2016 15:53:28 GMT

Ask them to change it to another product. That's what I did with my QS secured card once I started getting approved for premium cards. They switched it to a world mastercard and gave me a $7500 CLI to boot. Didn't even require an inquiry.

Re: Closing Cap One Secured Card?

takeshi74 — Thu, 14 Jan 2016 15:59:56 GMT

See the Closing Credit Cards thread linked in the Helpful Thread sticky and consider that information along with your subjective matters.

@Anonymous wrote:
Transunion (Capital One Credit Tracker = 741)

Always consider specific scoring model & CRA and the relevance of a given model/CRA combo to a given creditor. No creditor uses the TransUnion New Account score provided by Capital One's Credit Tracker.

@Anonymous wrote:
Equifax (PenFed Tracker 707)

This score is only relevant to creditors that use Equifax FICO NextGen.

@Anonymous wrote:
Experian (Chase Slate Tracker = 695)

IIRC that's an EX FICO 8.

@Anonymous wrote:
(Discover Fico Score = 728)

...and that's a TU FICO 8.

Do not assume all scores to be equivalent.

@Anonymous wrote:
Total Utilization = 7%

Avaerage Age of Accounts = 6 months

The thread I mentioned covers this but determine the impact to your revolving utilization. If you're at 7% right now I doubt it would have much impact but you can calculate to see for yourself. Your AAoA will not be impacted. Worry about impact to AAoA when applying, not when closing.

Re: Closing Cap One Secured Card?

Anonymous — Thu, 14 Jan 2016 15:59:36 GMT

@Anonymous wrote:
Ask them to change it to another product. That's what I did with my QS secured card once I started getting approved for premium cards. They switched it to a world mastercard and gave me a $7500 CLI to boot. Didn't even require an inquiry.

I will try to PC this secured card of mine over EO email. I'll let you guys know in the Approvals section what happens!

Re: Closing Cap One Secured Card?

Anonymous — Thu, 14 Jan 2016 17:34:49 GMT

@Anonymous wrote:
Ask them to change it to another product. That's what I did with my QS secured card once I started getting approved for premium cards. They switched it to a world mastercard and gave me a $7500 CLI to boot. Didn't even require an inquiry.
Just got off the phone with Capital One and they made it very clear that there is no graduation, conversion, or change over from any Secured Cards to Unsecrued Cards.

Not sure how you accomplished yours but kudos for getting it done.

Re: Closing Cap One Secured Card?

Anonymous — Thu, 14 Jan 2016 17:51:14 GMT

I was in a similar situation with similar scores. I closed my $500 limit Cap One Secured and my score went up an average of 9pts on each report. The other bonus I got was seeing as that was my lowest SL on file, it took my average SL up by about 200%. That can help when asking for credit limit increases.

If you are worried about the AAoA, 6 months is what you are loosing in the grand scheme of things. If you can PC that card into something else do it. If not, close it and let the others age along with your new average SL. If you can get on as an AU that would help you with the AAoA if you plan yo apply for something soon.

Re: Closing Cap One Secured Card?

vegastim13 — Thu, 14 Jan 2016 19:10:33 GMT

I've actually heard you can combine your secured limit with an unsecured product. Since there's no balance I would try to see if you're eligible for that, giving you one large limit instead of two smaller limits.

Re: Closing Cap One Secured Card?

Anonymous — Thu, 14 Jan 2016 20:00:20 GMT

@vegastim13 wrote:
I've actually heard you can combine your secured limit with an unsecured product. Since there's no balance I would try to see if you're eligible for that, giving you one large limit instead of two smaller limits.

No need to anymore!! Update! Update!

I just went on Capital One's website and applied for a Quicksilver Visa and was approved for $3000!! Earlier this morning I wrote an e-mail to Richard Fairbanks asking for an exception to my QS1 card and a CLI before the 5 month threshold. I just sent another e-mail to him asking him to disregard that request, and thanked him for the approval.

Now, I can close the Secured Account with confidence. I'll be gardening until Jan 2018!!

I have no need for any other cards.

As always, thank you to all who replied and gave advise.

Re: Closing Cap One Secured Card?

Adrenolin — Thu, 14 Jan 2016 21:01:55 GMT

Congrats on the new Visa man. Capital One is also now again allowing credit reallocation. I just combined all my accounts for a total CL of $24250 on my QS visa. I went ahead and called and had them drop my apr down to 9.9%.

I have no clue when it comes to secured cards, but would it have been possible to simply reallocate your 600 limit into your QS1?

Re: Closing Cap One Secured Card?

Anonymous — Thu, 14 Jan 2016 21:12:23 GMT

@Adrenolin wrote:
Congrats on the new Visa man. Capital One is also now again allowing credit reallocation. I just combined all my accounts for a total CL of $24250 on my QS visa. I went ahead and called and had them drop my apr down to 9.9%.

I have no clue when it comes to secured cards, but would it have been possible to simply reallocate your 600 limit into your QS1?

As far as I have experienced today with Capital One via chat and phone, they won't do anything as far as transfers of any kind when it comes to their secured cards. Not sure how anyone who has commented accomplished their tasks, for I have been stonewalled and told that I can't do anything of the kind with my secured card.

Thus, why I just said screw it and applied for the QS Visa.

Funny thing is, I'm still not sure I want to close the secured account...it was my first card and I know you're not supposed to take credit personal but the card isn't borthering me and I don't need the $300.

Re: Closing Cap One Secured Card?

Anonymous — Thu, 14 Jan 2016 22:17:34 GMT

On the 16th, Capital One will stop allowing members from making deposits to raise their limit. It sounds as if they're going to allow CLIs on secured lines like on their other cards. It might be a decent idea to wait until Saturday and see if you can get an unsecured CLI to pad your utilization a bit.

Hopefully, they might start allowing secured card graduations. One can dream!

Re: Closing Cap One Secured Card?

Anonymous — Mon, 18 Jan 2016 15:35:48 GMT

@Anonymous wrote:
@Anonymous wrote:
Ask them to change it to another product. That's what I did with my QS secured card once I started getting approved for premium cards. They switched it to a world mastercard and gave me a $7500 CLI to boot. Didn't even require an inquiry.
Just got off the phone with Capital One and they made it very clear that there is no graduation, conversion, or change over from any Secured Cards to Unsecrued Cards.
Not sure how you accomplished yours but kudos for getting it done.

I have no idea either. Maybe it was because I had already opened another card with them (Venture)? I emailed EO and the nice lady called me back and hooked me up.