topic Re: Capital One Secured considering closing in Credit Cards

Capital One Secured considering closing

Anonymous — Fri, 19 Jun 2020 10:26:00 GMT

Hey everyone, recently joined myfico in order to track my progress. I opened a Capital One Secured card nearly two years ago for $350 and got a CLI to $651 a few months later. I have got new credit since then Apple Card with CL of $4000, Paypal Mastercard Cashback $2000 after 2 months received CLI to $3250, and a line of credit through Paypal/Synchrony for $1000 (virtual only). I was trying to see if Capital One would allow me to upgrade but they're not and was wondering if there's any con to me closing the account. I've heard that it stays on my CR for 10 years but don't understand what that means, if anyone could please elaborate that would be a huge help. Just need some input if I have the green light to close it, since at this point it's pretty useless.

Re: Capital One Secured considering closing

Anonymous — Fri, 19 Jun 2020 13:15:45 GMT

@Anonymous wrote:
Hey everyone, recently joined myfico in order to track my progress. I opened a Capital One Secured card nearly two years ago for $350 and got a CLI to $651 a few months later. I have got new credit since then Apple Card with CL of $4000, Paypal Mastercard Cashback $2000 after 2 months received CLI to $3250, and a line of credit through Paypal/Synchrony for $1000 (virtual only). I was trying to see if Capital One would allow me to upgrade but they're not and was wondering if there's any con to me closing the account. I've heard that it stays on my CR for 10 years but don't understand what that means, if anyone could please elaborate that would be a huge help. Just need some input if I have the green light to close it, since at this point it's pretty useless.

Age of oldest account is an input into your credit score. But the account and its impact on your age of oldest account do not fall off your credit history when you close the account.

Usually positive information will stay ten years.

The CapOne account does not have big impact on your utilization.

For other people it might but not in your case.

Make a final request to unsecure card then close it.

Re: Capital One Secured considering closing

Anonymous — Fri, 19 Jun 2020 12:17:08 GMT

They may not upgrade that card, but they may approve you for a different card if you apply. That's a personal choice though. As for canceling the card and the 10 years, if it's a positive account, it will remain on your credit for 10 years and you'll still enjoy the positive effects. Of course, the credit limit will no longer be available, so it may affect your utilization depending on whether you carry balances. Also, closing it means it will not affect the age of your credit because it remains on your credit for 10 years. If you feel you should close it since it appears the card is bucketed, then close it. If you're still interested in Cap One then perhaps do some research and decide whether to app for a better quality cap one card.

Re: Capital One Secured considering closing

Anonymous — Fri, 19 Jun 2020 13:32:23 GMT

Thanks for everyone for your input, it's been a great help. I decided to take the chance and applied for another Capital One account, got accepted for the Quicksilver, with a $1k CL. I don't know if it's possible but do you guys think that i’m able to call up and request that they transfer the CL of my secured to my Quicksilver CL?

Re: Capital One Secured considering closing

Red1Blue — Fri, 19 Jun 2020 14:09:54 GMT

If there is no AF on your secured card why not leave it the way it is and let age and possibly grow slowly ?

Re: Capital One Secured considering closing

Anonymous — Fri, 19 Jun 2020 14:55:08 GMT

The way I see it, the average wouldn't change much? Since it's now 4 accounts rather than 5. Total account age between all of 4 existing one is 50 months, which evens out to about 12.5 months Average age of Account. With 5 it would be 10, so if I close one It would go back to 12.5 months. Am i calculating that wrong or mistaken in that logic? i'm relatively new to credit so please correct me if i’m wrong

Re: Capital One Secured considering closing

randomguy1 — Fri, 19 Jun 2020 15:36:10 GMT

@Anonymous wrote:
The way I see it, the average wouldn't change much? Since it's now 4 accounts rather than 5. Total account age between all of 4 existing one is 50 months, which evens out to about 12.5 months Average age of Account. With 5 it would be 10, so if I close one It would go back to 12.5 months. Am i calculating that wrong or mistaken in that logic? i'm relatively new to credit so please correct me if i’m wrong

If you plan opening up new cards, you need to take that into consideration. Personally, with only 5 accounts, I would like a buffer for my AoAA at the cost of having a card I rarely use and putting a charge on it every few months. It really depends how much you value the buffer vs the value your deposit back. Ultimately, that's a personal choice.

Re: Capital One Secured considering closing

Anonymous — Fri, 19 Jun 2020 16:01:12 GMT

So do you feel that having the card as a buffer would serve better for me if I plan to open new credit cards?

Re: Capital One Secured considering closing

randomguy1 — Fri, 19 Jun 2020 16:23:06 GMT

@Anonymous wrote:
So do you feel that having the card as a buffer would serve better for me if I plan to open new credit cards?

Yes, exactly.

Re: Capital One Secured considering closing

Rudy1 — Fri, 19 Jun 2020 16:32:13 GMT

As others have said I would keep it just for your AAOA. I have a old Bloomingdales credit card that I put spend on every so often. I also just like the stuff from Macy's/Bloomingdales. But I keep this card reallt jsut for the AAOA. So if you are going to open another card I would keep the Capital One Secured.

Re: Capital One Secured considering closing

Remedios — Fri, 19 Jun 2020 16:42:53 GMT

@Anonymous wrote:
Hey everyone, recently joined myfico in order to track my progress. I opened a Capital One Secured card nearly two years ago for $350 and got a CLI to $651 a few months later. I have got new credit since then Apple Card with CL of $4000, Paypal Mastercard Cashback $2000 after 2 months received CLI to $3250, and a line of credit through Paypal/Synchrony for $1000 (virtual only). I was trying to see if Capital One would allow me to upgrade but they're not and was wondering if there's any con to me closing the account. I've heard that it stays on my CR for 10 years but don't understand what that means, if anyone could please elaborate that would be a huge help. Just need some input if I have the green light to close it, since at this point it's pretty useless.

Close it, it's useless. It's done what it was supposed to do based on your recent approvals.

Having a secured card with them doesnt mean you'd have favorable outcome with future CapOne apps, simply by virtue of having a starter account they hand out like a candy. Also, by the time this card is off your reports, your other accounts will be aged, and really, it's no big deal.

You dont hang onto your toddler shoes because you outgrew them, dont hang onto dead end cards.

It's a pretend card with pretend limit. Its time you stop pretending you need it, you dont.

Capital One loves when these accounts stay open as cardholder's score improve because it raises average score in the particular "portfolio" being sold to the investors.

Not gonna bore you with ABS, but it's their dream for people to hang on these cards.

Re: Capital One Secured considering closing

Ficoproblems247 — Fri, 19 Jun 2020 21:14:29 GMT

@Anonymous wrote:
Thanks for everyone for your input, it's been a great help. I decided to take the chance and applied for another Capital One account, got accepted for the Quicksilver, with a $1k CL. I don't know if it's possible but do you guys think that i’m able to call up and request that they transfer the CL of my secured to my Quicksilver CL?

Congrats on your approval! Unfortunately they will not combine your limits. Since you started with a $1,000 SL, that card likely will have the ability to grow slowly over time with heavy use, and large payments. Good luck on your continued credit journey!

Re: Capital One Secured considering closing

Anonymous — Fri, 19 Jun 2020 22:55:36 GMT

I ditched capital one due to frustrations with this. I started with their secured card and I do appreciate that they helped me when nobody else would, and my credit score has gone up 200 points since those days, I couldn't have done it without them, but I couldn't have done it with them alone, either.

I had a secured platinum that they would not graduate, and another platinum that I had applied for like you in hopes of getting a better credit limit. I closed the secured card, held on to the other one and even got them to upgrade it to a quicksilver with no AF. But they topped out at a measly $950 credit limit. They wouldn't budge on that for over a year, probably because I wasn't using it enough. (Mine started at $500 so maybe you will do better starting at $1000)

Meanwhile chase and Amex and citi each are giving me 3-9k per card and with better rewards. So I closed the quicksilver and moved on from capital one. It's a starter card, a good one, but that's it.

Re: Capital One Secured considering closing

recoveringfrombk7 — Sat, 20 Jun 2020 02:16:45 GMT

Close it and get your money back. There is no point in letting them have your money when you have other options.