topic Re: Should a CapOne Secured Ever Be Closed? in Credit Cards

Should a CapOne Secured Ever Be Closed?

Anonymous — Tue, 12 Jan 2016 16:54:55 GMT

Hey guys, just had a quick question. When I finish gardening, should I close my CapOne Secured card? I plan on applying for a few higher-tier cards (CSP and AmEx ED) as well as a series of hard pull CLIs. Would this toy card of mine hamper any success in obtaining decent starting limits? I've read of some cases where some lenders weren't too fond of low limit sub-prime cards.

Granted, my card is building history. I'm aware that my AAoA will be negatively affected after 10 years, but I don't think this'll be a problem then due to the AAoA buffer I'm building. The limit is so low that removing this card would barely touch my utilization. I can't apply for another CapOne card and merge this with that. There is no annual fee and my security was a relatively insignificant $49.

Also, I'll probably close my AmEx Green after I get the AmEx ED. The benefits pale in comparison to the CSP that I will (hopefully) get, plus I don't travel so much that it warrants two $95 AF cards. The main reason I got the Green was to get my foot in the door with AmEx. I specifically want the ED because it'll be where I "bank" my MR points.

Are my ideas sound? Any suggestions?

Re: Should a CapOne Secured Ever Be Closed?

Creditaddict — Tue, 12 Jan 2016 17:02:56 GMT

you probably could get a $15k+ Venture and $5-$10k QS now!!

I would close the Cap1 secured AND Discover Student for that matter!

Re: Should a CapOne Secured Ever Be Closed?

Anonymous — Tue, 12 Jan 2016 17:06:58 GMT

Problem is, my credit history is only 4.865 months old...

I feel like that 2 year gardening session is kinda warranted

Re: Should a CapOne Secured Ever Be Closed?

Creditaddict — Tue, 12 Jan 2016 17:23:51 GMT

@Anonymous wrote:
Problem is, my credit history is only 4.865 months old...
I feel like that 2 year gardening session is kinda warranted

i don't know you need 2 years but if you have enough cards to last you then sure would be great.... but maybe 3-6 months since your last approvals to grab a couple bigger hitters to hold you over for a year or so.

Re: Should a CapOne Secured Ever Be Closed?

Anonymous — Tue, 12 Jan 2016 17:41:05 GMT

Sounds great. Am I correct in saying that most lenders don't care about inquiries after the 6 month mark? I plan to apply for the CSP on 1/1/18. This will eliminate absolutely all hard pulls on both Experian and Equifax and leave 1 on Transunion. I can actually apply as early as 11/10/17 if I don't open any more accounts, due to 24/5. If I were to open one account between now and then, I'll have to wait until 11/15/17.

However, if I apply on 11/15/2017, I'll have 7 VERY, VERY old inquiries on both Experian, 2 on Transunion, and 4 on Equifax. Would Chase care about these 1.9 year old inquiries?

Re: Should a CapOne Secured Ever Be Closed?

jeffery581 — Sat, 16 Jan 2016 02:42:52 GMT

Some care about all inquires a lender questioned my inquires that were almost 2 years old.

Re: Should a CapOne Secured Ever Be Closed?

Anonymous — Sat, 16 Jan 2016 15:11:47 GMT

Go on the cap one prequal site, if you're approved for the Quicksilver or Venture, apply. After your approval, close the secured card, you don't need it anymore, it did it's job.

Re: Should a CapOne Secured Ever Be Closed?

Anonymous — Sat, 16 Jan 2016 15:47:24 GMT

Unfortunately, I'm too young to be given pre-approved offers from Capital One. With the upcoming changes heading in really soon, I'll see if I can get this card product changed. At the very least, I'd like to be able to apply for CLIs myself.

Re: Should a CapOne Secured Ever Be Closed?

Anonymous — Sun, 17 Jan 2016 22:48:47 GMT

@Anonymous wrote:
Go on the cap one prequal site, if you're approved for the Quicksilver or Venture, apply. After your approval, close the secured card, you don't need it anymore, it did it's job.

Sometimes those pre-qual sites are funny as can be. Yesterday, I went on Cap One Pre-qual site and it said that they couldn't find any matching offers. I went ahead and applied for the Quicksilver Visa Signature Card, and was instantly approved for $3000. Go Figure!

Re: Should a CapOne Secured Ever Be Closed?

takeshi74 — Sun, 17 Jan 2016 23:10:00 GMT

Whether or not any card should be closed is up to the individual to determine. There are some universal consdirations covered in the Closing Credit Cards thread linked in the Helpflu Threads sticky as well as general advice such as having at least 2-3 cards for scoring purposes. However, there are a lot of subjective considerations and the individual needs to decide based on the individual's priorities.

It is not a given that any card should be kept open forever. Some may choose to keep all possible open as long as posible. Some may choose cards with certain criteira to be open as long as possible. Again, it's up to the individual's priorities and preferences. i don't keep anything of no use to me open but your criteria may differ from mine.

@Anonymous wrote:
I plan on applying for a few higher-tier cards

Dion't worry about tiers or how high they are. Sort out your needs/wants. Use that to select cards that suit you.

@Anonymous wrote:
Would this toy card of mine hamper any success in obtaining decent starting limits?

Creditors do not simply match limits. Your limits are part of your credit profile but they are not the only thing that matters. The limits that you qualify for depend on your entire credit profile versus a given product's underwriting criteria. It is not simply a matter of having one or more low limit cards or not.

@Anonymous wrote:

Also, I'll probably close my AmEx Green after I get the AmEx ED. The benefits pale in comparison to the CSP that I will (hopefully) get, plus I don't travel so much that it warrants two $95 AF cards.

You need to consider much more than just AF. Consider total cost/benefit. For programs like MR and UR you need to look beyond earn rates and consider how the methods of redemption that you can leverage will impact rewards value. You also need to consider whether or not you have sufficient spend for one, let alone two, rewards programs. How long will it take you to accrue enough with your spend and the earn rates to redeem for rewards? One program like MR or UR generally requires a lot of spend.

Wanting to travel and even amount of travel doesn't necesarily determine how well these programs are suited to an individual. For some spend levels cash back cards are a better fit. Make sure you're runnning the numbers for your spend all the way through and carefully considering. A single high value redemption on international premium cabin travel (i..e just one trip) could potentially justify one program in itself if it happens to work out for an individual.

@Anonymous wrote:
The main reason I got the Green was to get my foot in the door with AmEx.

You don't need to get your "foot in the door". Either you qualify or you don't. If you qualify for the AmEx you want then you probably would have qualified without the Green. That said, carefully compare both the ED and EDP as well as the BCE and BCP. Find the one that maximizes the rewards on your spend and methods of redemption (for the MR cards). I understand you already have MR points but unless you fully considered whether or not MR was a good fit before applying for the Green then don't stick with MR just becuase.

Re: Should a CapOne Secured Ever Be Closed?

Anonymous — Mon, 18 Jan 2016 15:35:07 GMT

Thanks for the amazing advice. I've given it some thought, and I've decided to stick with MR, since it includes most of the airlines I prefer. I'll be delegating most of my spend to the CSP+Freedom combo after your running a few cost/benefit analyses, as you've suggested. Again, thanks for the insight!

Re: Should a CapOne Secured Ever Be Closed?

Anonymous — Mon, 18 Jan 2016 21:04:19 GMT

Close the card after your apps, so it still shows as your oldest account. But yes, you should close it and get your deposit back.