topic Re: Open and Close Question in Credit Cards

Open and Close Question

Anonymous — Fri, 29 Jan 2016 02:40:56 GMT

To make a long story short, I had a CAP1 secured card for 1,000. I went to upgrade and they told me that I have to re-apply for a new card and they just dont upgrade. So I applied for a Platinum un secured. Got approved for $500. They told me Im in the credit start program. I got pissed and flipped out on them saying why would I need a $500 card if I have a 1,000 one with them. I ended up canceling my 1,000 secured card which had 5 months history and the 500 one. I then relaized I made a mistake closing the 1,000 one cause its 5 months of work I put it and it went down the drain. I then called them and told them to undo what I did and they couldnt. So I re-opened the 500 one and currently waiting for it in the mail. Should I bother with the 500 card or is it going to f me up cause it will bring down the AA? I recently opened other retail cards also. The 500 card is useless to me but I look at it as a paid account on my report thats going to have perfect payment history for the future, What should I do? I currently have a BOA secured 1,000 card opened the same time as the 1,000 cap1 and 2 auth user tradelines with good age and hi limits. Will the 500 card hurt me or should I keep it and use it? I can still cancel it so it doesnt appear on my report. Another reason I flipped out is because they told me they dont have credit analysts or underwritters I can speak to to get the $500 cards limit increased or have my app manually looked over. That really made me feel I was at a dead end with them.

Re: Open and Close Question

Skye12329 — Fri, 29 Jan 2016 03:12:47 GMT

I am confused why your worrying about a $500 limit. The new account will drop your score some, even if you close the account. It will still report but would only show 1 month history and do more damage than good. Also the $500 line is unsecured line which is a good start. Its going to take time to get higher credit lines, even if you have larger lines with a bank doesn't mean they will match it. It can go higher or lower. I would keep it open and just keep using credit responsibly. Cap1 does not reconsider credit lines. You can ask for an increase, but this early it would be denied. After 6 mos of on time payments your credit line will increase automatically.

Re: Open and Close Question

degs138 — Fri, 29 Jan 2016 03:42:46 GMT

You have to be patience, you're not going to just get all the credit you want. Stop closing accounts. Keep your balances low and PIF. You'll have a 5k card in no time.

Re: Open and Close Question

lindsaydruart — Fri, 29 Jan 2016 04:14:57 GMT

Never make credit decisions based on emotions. Keep and use the $500 card for 6 months and CLI.

Re: Open and Close Question

Anonymous — Fri, 29 Jan 2016 04:41:34 GMT

I dont need this $500 is what im trying to say. I have a BOA $1,000 card that I use as well. Actually just increased it to 1500 to compensate somewhat for the 1,000 i lost with the cap 1 card I cancelled. They pissed me off and I was actually trying to bluff them but it didnt work. They didnt give a **bleep** which made me mad even more cause it shows they dont care about keeping customers. She didnt even try to say "Are you sure" or anything like that. And it was a supervisor. I am scared of this card bringing down my AAOA even thou I have other retail accounts I recently opened but its still one more account. My scores are 650's and I know in a couple months when the inquiries come off, I wont have a prob getting a better card than that pitiful $500. Also I have my new car lease which will be posting in 3 days for the first time and I heard since that is my 1st installment loan, it will rasise my score too. I can be wrong but this is what I heard.

Re: Open and Close Question

Skye12329 — Fri, 29 Jan 2016 07:17:44 GMT

@Anonymous wrote:
I dont need this $500 is what im trying to say. I have a BOA $1,000 card that I use as well. Actually just increased it to 1500 to compensate somewhat for the 1,000 i lost with the cap 1 card I cancelled. They pissed me off and I was actually trying to bluff them but it didnt work. They didnt give a **bleep** which made me mad even more cause it shows they dont care about keeping customers. She didnt even try to say "Are you sure" or anything like that. And it was a supervisor. I am scared of this card bringing down my AAOA even thou I have other retail accounts I recently opened but its still one more account. My scores are 650's and I know in a couple months when the inquiries come off, I wont have a prob getting a better card than that pitiful $500. Also I have my new car lease which will be posting in 3 days for the first time and I heard since that is my 1st installment loan, it will rasise my score too. I can be wrong but this is what I heard.

Its the computer that grants the credit limit, but they grant based on creditworthiness and income. You shouldn't take credit too personally, especially when a low limit is given. One thing to keep in mind, it does matter for what card you apply for. So personally if i applied for the Capital One Quicksilver One card (the MC). I would probably receive a limit in the $300-500 range due to it being more of a rebuilder card. However if i applied for the Venture card for excellent credit. It has a minimum starting line of $5000. Although the requirements are a bit tougher for cards that require more excellent credit.

As i mentioned Cap1 doesn't reconsider the limits given by a computer nor can a regular supervisor manually review a new account to try and increase the limit. Now i am not trying to say this to be mean, but banks don't care about customers personally. They care about money. Imma give an example of myself recently actually. So personally i have credit lines ranging in the $500 - 10k range. My last credit card application was for a Capital One Playstation card. I was approved for a $500 limit. Did this upset me? No, i care about the rewards of the card since DH and I can benefit quite a bit. I also knew with Capital One you can do soft pull credit line increases. So after 2 months, i requested an increase online and was able to increase it by a little extra. Also since my Playstation card started with a lower limit, means i am enrolled in credit steps. So in 6 months, they will automatically bump up my credit line.

You mention retail accounts recently opened. How recent? Because any time a new tradeline or loan reports its going to drop your AAOA. Older credit accounts help thicken your credit report, so the hit isn't major. Also inquiries take 1 year to not affect your score (but still remain on there) and on the 2nd year they fall off your credit report completly. The car lease will raise your score, first you might take a small hit for the new account but since its a car loan it will go up around the 2nd month of reporting IME.

Re: Open and Close Question

Anonymous — Fri, 29 Jan 2016 09:11:33 GMT

@Anonymous wrote:
To make a long story short, I had a CAP1 secured card for 1,000. I went to upgrade and they told me that I have to re-apply for a new card and they just dont upgrade. So I applied for a Platinum un secured. Got approved for $500. They told me Im in the credit start program. I got pissed and flipped out on them saying why would I need a $500 card if I have a 1,000 one with them. I ended up canceling my 1,000 secured card which had 5 months history and the 500 one. I then relaized I made a mistake closing the 1,000 one cause its 5 months of work I put it and it went down the drain. I then called them and told them to undo what I did and they couldnt. So I re-opened the 500 one and currently waiting for it in the mail. Should I bother with the 500 card or is it going to f me up cause it will bring down the AA? I recently opened other retail cards also. The 500 card is useless to me but I look at it as a paid account on my report thats going to have perfect payment history for the future, What should I do? I currently have a BOA secured 1,000 card opened the same time as the 1,000 cap1 and 2 auth user tradelines with good age and hi limits. Will the 500 card hurt me or should I keep it and use it? I can still cancel it so it doesnt appear on my report. Another reason I flipped out is because they told me they dont have credit analysts or underwritters I can speak to to get the $500 cards limit increased or have my app manually looked over. That really made me feel I was at a dead end with them.

WOW! I hope you don't wear your emotions on your sleeve in all your dealings. really, that's being a little thin skinned don't you think?

If you just app'd and were approved for the Platinum card like you said then you need to go right back in and app the QS1 card (they will use the same HP as the Platinum so you'll get 2 cards for the dmaage of 1 HP). It is the Cap1 entry level card that actually gives cash rewards and it doesn't look like you have a rewards card in your wallet now. You will get another $500 limit and another card in the STEPS (not Start) program and that is another great benefit with Cap1. Most people here sya that you'll get your first CLI at or about the 6mth point but the truth is that at about the 4-5mth point you can use the auto system or call in for a CLI adn if you've been using the cards you will more than likely get something then AND the auto CLI at 6mths. The combined effort should have both cards at or close to your desired $1000 CL. Once you get past the 6mth point you can combine the 2 cards and in all you will be MUCH better of than you will be trying it the way you are going about it.

I have a couple of secured cards with higher CL's that are about a year old and I'm getting no where with CLI's or flipping them into unsecured one. From what I've read here over the past few weeks, Cap1 is one of the most generous CC's with respect to CLI's and offering better products down the road.

Also, I think I've read that Cap1 won't turn a secured card into an unsecured one so you would have had to close the unsecured one at some point and app'd for a new card, which is essence what you've done now.

Take the $1000 returned deposit and put it away for a rainy day or go out and have a good time with your sig other. You will be where you want to be in due time and you are not alone. We all get frustrated at times but there are better ways to channel your energy than to blow a gasket.

Blessings to you and stick around these forums. They will be a great resource and source of strength and calm. You can even come here and blow off some of that steam if you want to where it won't affect your financial future. again

Re: Open and Close Question

Anonymous — Fri, 29 Jan 2016 09:30:36 GMT

A $500 capital one platinum card built my credit. I never even requested a cli. App'd for a QS after a year and was approved with a $5k cl. I still have both of those cards and a few others. All thanks to my capone plat.

IMO you dont deserve the platinum card the way you treated the customer service rep.

Re: Open and Close Question

Chris679 — Fri, 29 Jan 2016 09:39:09 GMT

My oldest card was a Capital One Platinum a $500 limit too. Now that card is a QS with a $6000 limit that I only keep around because it's the oldest one I have. I didn't thumb my nose up at it, I looked at it for what it was: a starting point. Fast forward 7 years and Chase just gave me a $22,000 starting limit on Mariott Visa. Everyone starts out that way don't take it personal.

Re: Open and Close Question

Anonymous — Fri, 29 Jan 2016 11:20:12 GMT

When I was young , I made some bad financial decision. My very first credit card (Cap 1) went to collection and was eventually close. I was young, naive and fresh out of high school. I didnt know any better. After educating myself I finally started to work on rebuilding my credit. I started with out with a $500 secured card with BoA. After some time I received a $300 offer from Orchard, which was later absorbed by Cap 1. Then eventually I was given another chance by Cap 1 and offered me a $300 CL. Fast forward a few years, that BoA secured card was upgraded to their regular card. All of my cards credit limit got higher and higher.

I then took the advise members here. I asked my creditors to if it was possible to to upgrade my card with the ones that has rewards. I now have BoA CashRewards. When Orchard was absorbed by Cap 1, I still kept both card since they are my oldest credit. I was able to upgrade one to Quicksilver, and the other to VentureOne. They were also able to take off the annual fee.

Be patient and educate yourself. It takes time.

Re: Open and Close Question

Anonymous — Fri, 29 Jan 2016 12:48:18 GMT

Thanks for the info guys. Im just very frustrated lately with rebuilding my credit. I worked hard geting all my baddies off and spent money on AU tradelines. I appreciate all the time u guys put into responding to my questions.

Re: Open and Close Question

Anonymous — Fri, 29 Jan 2016 13:01:43 GMT

How do I add my CC's to my profile. I see that u guys have all ur cards listed on the bottom of the posts

Re: Open and Close Question

takeshi74 — Fri, 29 Jan 2016 14:15:09 GMT

@Anonymous wrote:
I got pissed and flipped out on them saying why would I need a $500 card if I have a 1,000 one with them.

That's not how it works. Limits aren't set based solely on prior limits or what you think you need. Limits are set based on what your credit profile and income qualify for at time of consideration. If you're upset it's your credit profile that you should be upset with.

@Anonymous wrote:
I then relaized I made a mistake closing the 1,000 one cause its 5 months of work I put it and it went down the drain.

Also not how it works. Your Payment History for that card does not go away when you close it. AAoA is not immediately impacted either. Closed accounts typically remain on your reports for 10 years. What is immediately impacted is revolving utilization.

Calm down and think rationally before making decisions and taking action. Stop taking the decisions of creditors as personal insults. Don't let emotion drive your actions. They're making decisions based on their underwriting criteria and how your credit profile stacks up. It's all risk assessment. For more info on the impact of closing credit cards, read the Closing Credit Cards thread linked in the Helpful Threads sticky.

@Anonymous wrote:
Should I bother with the 500 card or is it going to f me up cause it will bring down the AA?

You've already done the damage. You might as well make use of the account. AAoA is dropped when you open a new account. Closing does not immediately impact AAoA. You will not increase AAoA by closing a new account.

AA is typically used to mean Adverse Action.

@Anonymous wrote:
I can still cancel it so it doesnt appear on my report.

It doesn't work that way. If you apply it will report. Cancelling does not prevent a new account from reporting. Opening an account and immediately closing isn't helping you.

With your profile you're going to be limited in the number of new accounts you can add. Take what you have and build with it. Stop opening new accounts. Make your decision on whether or not you keep an account before applying and not immediately after approval.

Again, limits you qualify for are based on your credit profile and income. The low limits indicate concerns with your credit profile. The actions you've taken so far are not helping your situation as you have quite a bit of new credit for your profile.

@Anonymous wrote:
Another reason I flipped out is because they told me they dont have credit analysts or underwritters I can speak to to get the $500 cards limit increased or have my app manually looked over. That really made me feel I was at a dead end with them.

Stop flipping out. Talking to an underwriter doesn't change your credit. If you want higher limits then carefully review your reports, idenitify deficiencies and work on addressing them.

Building credit is a long, slow process and you're still just in the very early starting stages so get yourself in the right mindset and prepare to be in this for the long haul.

@Anonymous wrote:
I dont need this $500 is what im trying to say.

That does not matter is what we are saying. You qualify for what you qualify for and you've already done the damage to your profile by apllying. You can't decide on need after approval. Yes, it can be difficult to make use of a low limit card but you already have it and might as well use it to build. You can always make mutltiple payments and pay the balance down prior to report date to keep its reported revolving utilization low.

@Anonymous wrote:
My scores are 650's and I know in a couple months when the inquiries come off, I wont have a prob getting a better card than that pitiful $500.

Don't assume that. Inquiries are a relatively small factor. If you're seeing a bigger impact from inquiries then you have bigger issues with your credit that you need to address. Your recent credit seeking activity is a risk factor and a consideration and it's part of the reason why you got a low limit. Inquiries falling off will not change that. You will have issues with other creditors as well. Don't act entitled as it's not helping you and you will just continue to drive your credit profile further into the ground.

@Anonymous wrote:
Also I have my new car lease which will be posting in 3 days for the first time and I heard since that is my 1st installment loan, it will rasise my score too. I can be wrong but this is what I heard.

Credit Mix is typically ~10%. It's a small factor.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

@Anonymous wrote:
If you just app'd and were approved for the Platinum card like you said then you need to go right back in and app the QS1 card (they will use the same HP as the Platinum so you'll get 2 cards for the dmaage of 1 HP).

OP does not need to apply for any new cards. It's not just HP's that matter. The low limits indicate that there are concerns with the OP's credit profile. OP says that a number of new accounts were already opened. Another new account will not help even if it doesn't incur an additional hard pull. Again, hard pulls are relatively small factors despite the obsession over them. The reason they're seen as a bigger deal around here is because there are lot builders and rebuilders. However, those people need to be aware of all factors -- not just HP's. Recent credit activity is also a factor and will have a bigger impact for those in such a situation.

@Anonymous wrote:
Im just very frustrated lately with rebuilding my credit. I worked hard geting all my baddies off and spent money on AU tradelines.

Understandable but don't let it get to you. Why did you spend money on AU TL's? Don't rely too much on being an AU to help. Such TL's are not always considered.

@Anonymous wrote:
How do I add my CC's to my profile. I see that u guys have all ur cards listed on the bottom of the posts

There's a sticky in Smorgasboard.

Re: Open and Close Question

degs138 — Fri, 29 Jan 2016 13:46:50 GMT

The last thing you want to do is get too many cards. Get a few cards and make payments. Don't get to many cards at once or you can start losing track of payment dates. I tend to only get one card every 6-12 months so that I can hit spend bonuses and then old inquires fall off before I make new ones.