topic Re: Credit One in Credit Cards

Credit One

Schmoopylicious1 — Tue, 22 Dec 2020 03:25:44 GMT

Long time lurker here. I hope I'm posting in the right spot!

I started rebuilding in February of this year. My first card was a Credit one card with a 300. limit. The limit hasn't budged one iota. I had never been late, never over limit and always paid more than the minimum. I finally got fed up. I paid the card in full last week and waited until it posted to the account. This morning I called to cancel it, and was met with the most unprofessional CSR. He wanted to know why I was cancelling, and I told him exactly why. Lack of cli, annual fee etc...

He had the nerve to tell me I was making a huge mistake. Uh...what???

He looked to see, if after 11 months, I was eligible for an increase. He came back with a big fat no. He said the reason was that my account hasn't been opened long enough. They really didn't offer me anything to stay with them. Didn't even offer to waive the upcoming annual fee. He just repeatedly told me I was making a mistake by closing my account, and tried making me feel guilty about it.

I feel like a weight has been lifted off my shoulders kicking them to the curb. By the way, my fico scores are so close to 700, I can almost touch it. 😄

Re: Credit One

AllZero — Tue, 22 Dec 2020 03:32:50 GMT

Congratulations on your card closure! Onward and upward.

Re: Credit One

Anonymous — Tue, 22 Dec 2020 04:13:44 GMT

Credit One is a subprime lender, sometimes referred to as a predatory lender. You did yourself a favor by dumping them.

Do you have another card or cards, or are you now without any open revolvers?

Re: Credit One

Schmoopylicious1 — Tue, 22 Dec 2020 05:41:39 GMT

I do have other cards. I have cap1 secured, Mission lane and a few store cards. My overall utilization is 19%.

Re: Credit One

Adkins — Wed, 23 Dec 2020 00:24:19 GMT

Congratulations on closing your account! I always recommend to request an official letter, on company letterhead, stating the account is closed with a zero balance. Then put that paper with this year's tax paperwork. Just a CYA in case they try any funny business down the road.

Re: Credit One

HeavenOhio — Tue, 22 Dec 2020 07:48:54 GMT

Welcome, @Schmoopylicious1.

You did the right thing. Credit One will try to tell you that you're harming yourself by closing their card when the reality is that you're doing yourself good. The best advice is to try and avoid Credit One in the first place. The second best advice is to use the card as little as possible and close as soon as possible.

Re: Credit One

rostrow416 — Tue, 22 Dec 2020 15:29:19 GMT

If they weren't trying to keep you, there's no reason to stick with them. They have their purpose but once they aren't working for you, they are time to go. Once they put the annual fee back on my card, I'll be dumping them too, as of right now, they are buried in my sd.

Re: Credit One

Anonymous — Tue, 22 Dec 2020 16:15:47 GMT

Why wait until they hit you with an AF to cancel? Wouldn't it make more sense to just pull the plug before that to avoid it?

Re: Credit One

KJinNC — Tue, 22 Dec 2020 16:49:08 GMT

Closing a card, in general, will not hurt your credit except in specific situations that do not apply in this case. Those situations are:

1 - Closing it reduces your total credit limit significantly and therefore increases your total utilization significantly. For example, if you have a $1,000 card, a $2,000 card and a $5,000 card, closing the $5,000 card would likely increase your utilization significantly.

2 - Closing the card takes you below three cards in total. You get a small scoring bonus with three cards.

Financially, closing a card could hurt you in terms of cash back/rewards if it's a card that benefits you in that way and you can't replace, but this is also not that situation.

Closed positive accounts stay on your credit for ~10 years after closing, so, closing it won't hurt your account age for a long time and won't matter by then.

JMO, good luck!

Re: Credit One

HeavenOhio — Tue, 22 Dec 2020 21:28:15 GMT

If you have a small number of cards (three or fewer or maybe five or fewer), the loss of an open card may cause a small scoring ding. But unless you're trying really hard not to rock the boat, the loss of a couple of points is probably worth being rid of Credit One.

When it comes time to apply for a new card, your potential new lender will like the history of the closed card just as much as it likes the history on open ones.

Re: Credit One

Anonymous — Tue, 22 Dec 2020 19:49:09 GMT

Oh wow. That's unprofessional.

I closed my Credit One right before the annual fee hit 2 months ago. The card served its purpose but there was certainly no need to continue holding a card with such a low limit and high annual fee after improving my credit profile.

Congrats on your score improvement.

Re: Credit One

Anonymous — Wed, 23 Dec 2020 00:15:42 GMT

@Adkins

This is the best advice regarding this thread. Credit One Bank will maybe try some funny biz down the road. I have read reports of them reporting CO's for unknown fees after the account was closed for as little as $30 and destroying someone's credit. Better to be safe than sorry.

Go well on your Credit Kung Fu Adventure!!

Re: Credit One

Papa_Bear — Wed, 23 Dec 2020 01:00:08 GMT

Can't wait to drop them soon. My limit hasn't budged at all either.

Re: Credit One

dunn2500 — Wed, 23 Dec 2020 22:56:20 GMT

they will serve there purpose for me too and i will drop them......its pretty much all i could get

Re: Credit One

Anonymous — Sat, 26 Dec 2020 23:32:17 GMT

Good for you on standing your ground.