topic Re: Bye bye Capital One in Credit Cards

Bye bye Capital One

Howaboutthat — Mon, 25 Jan 2021 17:06:25 GMT

I have 4 Capital One cards all with unacceptable APRs. Two have low balances (under $100) that I'll just pay off and close even though they have no fee. The other two are QS1s with a yearly fee and the APRs are 22% with balances of $1200 and $800. Ive just received 0% B/T offers from PenFed for my PCR and newly acquired Platinum. I don't need any of these Cap1 cards now as they represent such a small part of utilization and they are all bucketed.

So once again I come to seek the My Fico gods opinions, yay or nay!!!

Re: Bye bye Capital One

Rebuild2019 — Mon, 25 Jan 2021 17:12:41 GMT

I am thinking about doing the same thing so I say yay...just my two cents. Good luck whatever you decide.

Re: Bye bye Capital One

Brian_Earl_Spilner — Mon, 25 Jan 2021 17:23:00 GMT

If they don't make sense anymore, close them.

Unless one is your oldest card by a stretch. Keep that one.

Re: Bye bye Capital One

Slabenstein — Mon, 25 Jan 2021 17:33:11 GMT

The QS1's I would close once the balances are off of them. There are plenty of 1.5%+ cb no-AF cards out there, so even if you weren't carrying balances they'd still be money losers. With regards to the other two, whether or not it makes sense to close probably depends on your overall profile. How old are they compared to your other cards? How many bankcards do you have? Are their reward structures useful if you PIF? Since they have no AF, there's no real harm in keeping them open, other than whatever time and attention it takes to put maintenance charges on them and monitor them for fraud, so whether you want to is really just a matter of preference and what purposes, if any, they can still serve in your profile.

Re: Bye bye Capital One

sxa001 — Mon, 25 Jan 2021 17:41:23 GMT

If one of the cards is your oldest then of course keep it open (and if it is a QS1 that is your oldest try to PC to a non AF card if you can). Otherwise if you aren't using them go ahead and close them. Having cards that you don't need for util padding/credit history and you don't think you will need later is just too much work to remember to put spend on them.

Re: Bye bye Capital One

WarthogWrangler — Mon, 25 Jan 2021 20:11:21 GMT

I've never cared about APR since I pay in full. Annual fees are annoying but my Venture card more than pays for itself.

Re: Bye bye Capital One

Anonymous — Mon, 25 Jan 2021 22:33:28 GMT

Good for you. If I don't use it, I close it.

Re: Bye bye Capital One

Anonymous — Mon, 25 Jan 2021 22:58:52 GMT

Killing mine once I have replacement Visa AU cards for my kids. They're AUs on my QS as a backup to their AU Amex cards. I'd like them to have a Visa before I shut this down, either on my FNBO or Navy card.

Re: Bye bye Capital One

Howaboutthat — Tue, 26 Jan 2021 02:30:43 GMT

@Slabenstein wrote:
The QS1's I would close once the balances are off of them. There are plenty of 1.5%+ cb no-AF cards out there, so even if you weren't carrying balances they'd still be money losers. With regards to the other two, whether or not it makes sense to close probably depends on your overall profile. How old are they compared to your other cards? How many bankcards do you have? Are their reward structures useful if you PIF? Since they have no AF, there's no real harm in keeping them open, other than whatever time and attention it takes to put maintenance charges on them and monitor them for fraud, so whether you want to is really just a matter of preference and what purposes, if any, they can still serve in your profile.

My one QS is 5yrs and the other is 6yrs. If I'm correct even if I close them they stay on my account and report for 10yrs. As stated I'm going to transfer the balances of both to 0% balance transfer cards then close them.

I've never missed a payment in 6 years on any of these accounts and don't want to do any business with them again.

Re: Bye bye Capital One

FinStar — Tue, 26 Jan 2021 02:33:35 GMT

@Howaboutthat wrote:
@Slabenstein wrote:
The QS1's I would close once the balances are off of them. There are plenty of 1.5%+ cb no-AF cards out there, so even if you weren't carrying balances they'd still be money losers. With regards to the other two, whether or not it makes sense to close probably depends on your overall profile. How old are they compared to your other cards? How many bankcards do you have? Are their reward structures useful if you PIF? Since they have no AF, there's no real harm in keeping them open, other than whatever time and attention it takes to put maintenance charges on them and monitor them for fraud, so whether you want to is really just a matter of preference and what purposes, if any, they can still serve in your profile.
My one QS is 5yrs and the other is 6yrs. If I'm correct even if I close them they stay on my account and report for 10yrs. As stated I'm going to transfer the balances of both to 0% balance transfer cards then close them.

I've never missed a payment in 6 years on any of these accounts and don't want to do any business with them again.

If you decide to close them, yes. They can remain on your CRs for up to ~10 years and will still be reported and factored into your AAoA until they drop off.

Re: Bye bye Capital One

Brian_Earl_Spilner — Tue, 26 Jan 2021 18:04:52 GMT

@Howaboutthat wrote:
@Slabenstein wrote:
The QS1's I would close once the balances are off of them. There are plenty of 1.5%+ cb no-AF cards out there, so even if you weren't carrying balances they'd still be money losers. With regards to the other two, whether or not it makes sense to close probably depends on your overall profile. How old are they compared to your other cards? How many bankcards do you have? Are their reward structures useful if you PIF? Since they have no AF, there's no real harm in keeping them open, other than whatever time and attention it takes to put maintenance charges on them and monitor them for fraud, so whether you want to is really just a matter of preference and what purposes, if any, they can still serve in your profile.
My one QS is 5yrs and the other is 6yrs. If I'm correct even if I close them they stay on my account and report for 10yrs. As stated I'm going to transfer the balances of both to 0% balance transfer cards then close them.

I've never missed a payment in 6 years on any of these accounts and don't want to do any business with them again.

The issue is, if the next oldest card is 1yr old, when they do drop off, you'll take a 4yrs hit to AAoA. Normally not a big deal as that 1yr old card is now 11, but for credit seekers like on these forums, it can be a huge problem.

Re: Bye bye Capital One

Howaboutthat — Tue, 26 Jan 2021 19:12:30 GMT

I'll be 73 by then and won't care to much😊

Re: Bye bye Capital One

Aim_High — Tue, 26 Jan 2021 19:37:12 GMT

@Brian_Earl_Spilner wrote:
The issue is, if the next oldest card is 1yr old, when they do drop off, you'll take a 4yrs hit to AAoA. Normally not a big deal as that 1yr old card is now 11, but for credit seekers like on these forums, it can be a huge problem.

+1 Excellent point, @Brian_Earl_Spilner. While cards may report for ten more years after closure, I think it's important to look at the overall card collection to see potential impacts to AAoA. I've tried to keep older accounts open for that reason, not just my oldest reporting but multiple accounts. I currently have four that are 20+ years old which help to anchor my AAoA. They've all been product-changed into more useful renditions than the original cards which helps to keep them fresh and relevant.

Re: Bye bye Capital One

Anonymous — Tue, 26 Jan 2021 21:53:44 GMT

@Brian_Earl_Spilner wrote:
The issue is, if the next oldest card is 1yr old, when they do drop off, you'll take a 4yrs hit to AAoA. Normally not a big deal as that 1yr old card is now 11, but for credit seekers like on these forums, it can be a huge problem.

Unless I missed it, I don't believe the OP provided enough information to make that determination. AAoA is a function of all accounts on one's CR. It would be impossible to determine the AAoA drop associated with 2 old accounts falling off unless you knew how many accounts were being factored into that AAoA. The more accounts present on the CR, the less impact to AAoA from old accounts falling off of course.

Re: Bye bye Capital One

Anonymous — Tue, 26 Jan 2021 22:15:15 GMT

@Anonymous wrote:
@Brian_Earl_Spilner wrote:
The issue is, if the next oldest card is 1yr old, when they do drop off, you'll take a 4yrs hit to AAoA. Normally not a big deal as that 1yr old card is now 11, but for credit seekers like on these forums, it can be a huge problem.
Unless I missed it, I don't believe the OP provided enough information to make that determination. AAoA is a function of all accounts on one's CR. It would be impossible to determine the AAoA drop associated with 2 old accounts falling off unless you knew how many accounts were being factored into that AAoA. The more accounts present on the CR, the less impact to AAoA from old accounts falling off of course.

Indeed. I have a 7 year old Capital One card that I have been refusing to close on the basis of its age (my next oldest card is 3 years old) but the truth is that in 10 years I'll have the age of all the accounts I have added since factoring into my AAoA as well. With the thickness of my file right now, each account I add only brings my AAoA down by one month and I'm a month away from three years AAoA again. I'm not convinced that losing that Capital One account would hurt me much with all the 26 accounts I opened after it added in, 18 of which are still open, because all the open accounts will age to ten years too.

Re: Bye bye Capital One

Howaboutthat — Wed, 27 Jan 2021 02:03:53 GMT

@Anonymous wrote:
@Brian_Earl_Spilner wrote:
The issue is, if the next oldest card is 1yr old, when they do drop off, you'll take a 4yrs hit to AAoA. Normally not a big deal as that 1yr old card is now 11, but for credit seekers like on these forums, it can be a huge problem.
Unless I missed it, I don't believe the OP provided enough information to make that determination. AAoA is a function of all accounts on one's CR. It would be impossible to determine the AAoA drop associated with 2 old accounts falling off unless you knew how many accounts were being factored into that AAoA. The more accounts present on the CR, the less impact to AAoA from old accounts falling off of course.

Believe me I'll be ok, all things considered I'm not buying a new home anytime soon, have cars and all the things that are important to me and a pretty good amount of credit available. I've worked hard all my life and won't let a thing like AAOA stop me from doing what I want to do. I know the consequences.

My cards minus the 4 Cap 1s I don't want.

American Express Every Day
Bank of America Cash Rewards
Apple Card
Discover Card
PNC Core card
Mercury Bank*
Credit One Bank *
Comenity Bank*

Co-branded Bank Cards

AAdvantage
Costco
Lowes
Care Credit
Home Depot (Bucketed and getting rid of)

Credit Union Cards

Penfed PCR
Penfed Platinum Rewards

* = soon to be gone

Re: Bye bye Capital One

Anonymous — Wed, 27 Jan 2021 02:10:44 GMT

Yeah, so you've already got 15+ cards. Dropping that down to 10+ wouldn't impact your file much a decade from now when those accounts start to fall off. You'd also have the file-thickening of whatever other accounts you add between now and then to factor in as well.

Re: Bye bye Capital One

SFLSpotter9210 — Wed, 27 Jan 2021 02:43:15 GMT

Cap one was my first card when I was back into the credit game. I'm in the same boat as you high interest rate with a stagnant CL of 6,300 I'll just keep it in the sock draw as it's one of the oldest accounts for the time being. If your in the same boat as me with age of account I wouldn't go closing it either. Just my 2 cents worth.

Re: Bye bye Capital One

Howaboutthat — Sun, 07 Feb 2021 06:21:23 GMT

I've payed off two cards and closed them. Transferred QS1 balance and will close as soon as I get confirmation.

One more QS1 to balance transfer and close.

Re: Bye bye Capital One

Mr_Mojo_Risin — Sun, 07 Feb 2021 15:57:19 GMT

Cool, sounds good! Sometimes you gotta just move on when you feel it's not beneficial anymore.

Enjoy your Sunday!