topic Re: Cap 1 still secured since 2014?! in Credit Cards

Cap 1 still secured since 2014?!

Anonymous — Wed, 25 Jul 2018 15:03:10 GMT

My husband has a Cap 1 Platinum that started in February 2014 as a $200 secured card....his CL is now $700, but they have not unsecured it. Perfect history, never a missed or late payment and carries minimal balance. He also has a QS1 opened in 2/2016 with a $2k CL, again perfect history. Suggestions on what to do with this platinum card?

Re: Cap 1 still secured since 2014?!

Adkins — Wed, 25 Jul 2018 15:17:47 GMT

I'd close the card and get the deposit back. Secured capital one cards prior to 2016 rarely unsecure, it seems. As long as he has at least three other cards besides this one, it won't hurt his scores at this point.

Re: Cap 1 still secured since 2014?!

Anonymous — Wed, 25 Jul 2018 15:20:09 GMT

@Adkins wrote:
I'd close the card and get the deposit back. Secured capital one cards prior to 2016 rarely unsecure, it seems. As long as he has at least three other cards besides this one, it won't hurt his scores at this point.

He does have other cards, and he is AU on a few of mine as well.

Re: Cap 1 still secured since 2014?!

Anonymous — Wed, 25 Jul 2018 15:24:37 GMT

Close it, unless it’s his oldest card (and even then he may consider it). Capital One often “buckets” it’s cards at creation, limiting the card’s potential growth.

The hypothesis on these forums is that when Cap1 sells a credit card asset backed security, the cards underlying the security are permanently classified as whatever quality they were at the creation of the security.

Re: Cap 1 still secured since 2014?!

Anonymous — Wed, 25 Jul 2018 15:36:06 GMT

@Anonymous wrote:
Close it, unless it’s his oldest card (and even then he may consider it). Capital One often “buckets” it’s cards at creation, limiting the card’s potential growth.

The hypothesis on these forums is that when Cap1 sells a credit card asset backed security, the cards underlying the security are permanently classified as whatever quality they were at the creation of the security.

It is his oldest card, which is why he is leary about closing it. My thought is that we are both in a better place credit wise, and we need to consider dumping these subprime cards.

Re: Cap 1 still secured since 2014?!

Adkins — Wed, 25 Jul 2018 16:20:52 GMT

@Anonymous wrote:
@Anonymous wrote:
Close it, unless it’s his oldest card (and even then he may consider it). Capital One often “buckets” it’s cards at creation, limiting the card’s potential growth.

The hypothesis on these forums is that when Cap1 sells a credit card asset backed security, the cards underlying the security are permanently classified as whatever quality they were at the creation of the security.
It is his oldest card, which is why he is leary about closing it. My thought is that we are both in a better place credit wise, and we need to consider dumping these subprime cards.

Even at his oldest card, he'll keep the credit history for 7-10 years on a CRAs. You are exactly correct, it's time to dump subprime cards once your credit is in a better place.

Re: Cap 1 still secured since 2014?!

Anonymous — Wed, 25 Jul 2018 17:00:31 GMT

@Adkins wrote:
@Anonymous wrote:
@Anonymous wrote:
Close it, unless it’s his oldest card (and even then he may consider it). Capital One often “buckets” it’s cards at creation, limiting the card’s potential growth.

The hypothesis on these forums is that when Cap1 sells a credit card asset backed security, the cards underlying the security are permanently classified as whatever quality they were at the creation of the security.
It is his oldest card, which is why he is leary about closing it. My thought is that we are both in a better place credit wise, and we need to consider dumping these subprime cards.
Even at his oldest card, he'll keep the credit history for 7-10 years on a CRAs. You are exactly correct, it's time to dump subprime cards once your credit is in a better place.

Thank you! I appreciate your advice

Re: Cap 1 still secured since 2014?!

Anonymous — Thu, 26 Jul 2018 02:16:23 GMT

My husband has one from 2016 that doesn't seem to "want" to unsecure and it's also his oldest. The part about closed accts not hurting your score... Experian reported one of my credit cards(not oldest, 0 balance) as closed and my score dropped about 15 points. After disputing it, they reported it as open(as it should have been) and my score went up 5 points...

EDIT: Sorry, just noticed the issue was the credit history, not the score. His history would be fine.

Re: Cap 1 still secured since 2014?!

MakingProgress — Thu, 26 Jul 2018 16:09:53 GMT

I had a cap one secured card opened in 2015. It wasn't unsecuring and I talked to cap one executitive customer service. The way it was explained to me is that when you open a secured card that has the option of being unsecured a code is placed on the account. If at the time you opened it the terms and conditions did not mention unsecuring the card then no code is on the account and it can NEVER be unsecured. If the code is on the account it MAY be unsecured with no definate time frame.

In my case no code was on he account and I closed it, got my deposit back and moved on.

Re: Cap 1 still secured since 2014?!

Shooting-For-800 — Thu, 26 Jul 2018 20:41:54 GMT

I would look at prequals for QS (no AF) and Discover.

Once he gets one or both of those with a decent limit, I would close the secure card then.

With Cap One, he may not get good CLI, but as he credit gets better, better cards with better limits will become available instead.

GL!