topic Re: Should I close my Capital One? in Credit Cards

Should I close my Capital One?

Anonymous — Sun, 20 Mar 2022 23:42:46 GMT

Just graduating college and have had this card for years. Interest is 28%. I have an American Express at 18% and a Discover offer at 15%. I called Capital One and told them both Amex and Discover give me 5x higher limits and over 10% lower APR. customer service basically told me I was a nobody and to eff off and that they will never lower my APR. How much will it ding my credit to close my account with this trash company? Never missed a single payment in 3 years and have always been employed. What a joke capital one is. Haven't even used the card because they offer no rewards and terrible rates. Mainly concerned about the damage done closing an account as I've never done so.

Re: Should I close my Capital One?

Anonymous — Fri, 18 Mar 2022 21:33:56 GMT

I'd also like to give kudos to American Express. Polar opposite customer service experience with them. I explained the situation about the lower interest offer from discover and they were happy to lower my APR to match that rate. Definitely will be spending my money with them from now on.

Re: Should I close my Capital One?

tortoise_credit — Fri, 18 Mar 2022 21:41:16 GMT

I don't have a card with cap1, but from what I've read everything is decided by computers, so no amount of asking a rep will change anything.

That being said, if you want to close the card, you can as long as you still keep your utilization low across other cards. But you could also keep it open since it's your oldest card as long as you don't mind putting an occasional purchase on it and monitoring for fraud. In either case, it continues to count towards your FICO score for up to 10 years.

Re: Should I close my Capital One?

dragontears — Fri, 18 Mar 2022 21:45:03 GMT

@Anonymous wrote:
Just graduating college and have had this card for years. Interest is 28%. I have an American Express at 18% and a Discover at 15%. I called Capital One and told them both Amex and Discover give me 5x higher limits and over 10% lower APR. customer service basically told me I was a nobody and to eff off and that they will never lower my APR. How much will it ding my credit to close my account with this trash company? Never missed a single payment in 3 years and have always been employed. What a joke capital one is. Haven't even used the card because they offer no rewards and terrible rates. Mainly concerned about the damage done closing an account as I've never done so.

Well....

1. A lender is not "trash" because they won't lower your interest rate. Highly sought after, premium travel cards can operate the same when it comes to APR reductions.

2. The interest you would be charged if you pay the complete statement balance before the due date is $0 since Cap1 has a grace period.

3. You are right, Capital One doesn't care about you. But neither does Amex or Discover or any lender, we are all just a number to them and unless you are spend 6 figures on their card you will always be just a number.

4. Closing a card can affect your scores in several ways and you did not provide information on what balances you have on your cards.

5. You have a younger profile but come off entitled because of 3 years of payment history. You should temper your expectations about credit as you are a higher risk than someone who has 20 years of payment history but the same score and lenders know this.

Re: Should I close my Capital One?

Anonymous — Fri, 18 Mar 2022 22:49:41 GMT

I have newer "premium" cards with higher interest rates than some of my older accounts. APR is irrelevant unless you're carrying a balance, which is better done on a zero % intro bonus anyway...

I tend to get a card based on cash back or benefits. The interest rate isn't a factor to me. In the event I need to carry a balance, I stick it on a new card with 0% for a year, or a strategic balance transfer.

Closing the card will reduce your overall available limit. If you have decent limits on other cards then that won't matter. If it's a big part of your total limits then it may. The account stays on your credit file for 10 years after closing, so it'll still help your age of accounts for FICO purposes (though Vantage scores immediately remove it).

As others said, don't take it personally. We're just numbers to them. They don't feel guilty about charging us interest and fees, so we don't feel guilty getting sign up bonuses and cash back. Just keep good habits (pay on time, keep utilization low, don't go crazy with new accounts) and enjoy the game.

Re: Should I close my Capital One?

805orbust — Sat, 19 Mar 2022 04:22:13 GMT

You've gotten great feedback on this post thus far. Cap1 is essentially 2 different credit card companies. 1) a rebuilder company (i.e. low limit or secured Platinum for newbies), and 2) a rewards card company. The starter cards go nowhere... ever. I've read here about product changes or upgrades periodically but not "solid". You said your other limits outdo your Cap1 by many multiples, then if your utilization is low, no issue with closing. The account history will remain for up to 10 years.

My personal feelings? Close Cap1, close it, definitely close it... close it!

Re: Should I close my Capital One?

moto4man — Sat, 19 Mar 2022 11:11:49 GMT

@Anonymous wrote:
Just graduating college and have had this card for years. Interest is 28%. I have an American Express at 18% and a Discover at 15%. I called Capital One and told them both Amex and Discover give me 5x higher limits and over 10% lower APR. customer service basically told me I was a nobody and to eff off and that they will never lower my APR. How much will it ding my credit to close my account with this trash company? Never missed a single payment in 3 years and have always been employed. What a joke capital one is. Haven't even used the card because they offer no rewards and terrible rates. Mainly concerned about the damage done closing an account as I've never done so.

I tend to disagree. Cap1 has been kind to many of us that have struggled early on in our credit lifetime. And have opened the door to other more lucrative offers. They are by far one of the best at giving someone a second chance. While still being respectable about doing it, and they have a reliable system that ensures your payments are reported in a respectable timeframe.

As far as bucketed cards... Yes, I feel your frustration. But those cards are never going to get a lower APR, if anything you might get small CLI's that will do little more than piss you off. I don't see the point in closing them if there is zero AF attached to them. Just sock drawer them...

Re: Should I close my Capital One?

Anonymous — Sat, 19 Mar 2022 13:07:13 GMT

As has been posted numerous times in the MyFico Forum ... there are different lenders for different personal profiles. Some lenders focus more on the high end spenders with long credit histories and then there are lenders for the new person to credit and/or need to do some rebuilding on their credit.

Mercury, Capital One, Credit One are known for helping those who need a help with credit. In reading many posts, they tend to be more cautious and conservative. Sure get that, want to see the person perform and use their products then add a little credit at a time. Good business management. Over the years Capital One has focused on those in need and later on added more every day life type of cards and of late some higher end cards.

Myself due to bank consolidations etc I ended up with eight Capital One personal and business cards. Too many cards for me so I took the hits in the CBs for closing cards with old opening dates and moved on (will tell you the hit in the credit bureaus for closing a card from 2001 was large in my case and it took quite awhile to claw my way back on the average age of accounts and oldest accounts).

After time and reasonable credit usage the CB numbers increase and other lender products open up and rather than wait for the beginning type lenders to shower with higher CLs we seek out lenders that most suit our needs or wants of the time. Truly a personal choice.

Asking questions and shopping lenders is a good way to find cards that best fit us. Closing accounts on a short credit life is not a big hit but closing one that is ten years old will likely make a difference. Speaking with experience here. Good luck on what ever works for you.

Re: Should I close my Capital One?

SouthJamaica — Sat, 19 Mar 2022 13:42:27 GMT

@Anonymous wrote:
Just graduating college and have had this card for years. Interest is 28%. I have an American Express at 18% and a Discover at 15%. I called Capital One and told them both Amex and Discover give me 5x higher limits and over 10% lower APR. customer service basically told me I was a nobody and to eff off and that they will never lower my APR. How much will it ding my credit to close my account with this trash company? Never missed a single payment in 3 years and have always been employed. What a joke capital one is. Haven't even used the card because they offer no rewards and terrible rates. Mainly concerned about the damage done closing an account as I've never done so.

1. I happen to agree with you that Capital One is a trash company.

2. Closing the account won't affect your aging factors at all, because once it's closed it usually sits in your report for many years, typically 10 years or so.

3. If your revolving utilization is low on your other cards, it won't hurt your utilization either.

4. The only thing you're losing is one dependable zero balance-reporting card, so that could cost you a point or two until it's replaced. But I wouldn't let that deter me from getting rid of a useless card.

Re: Should I close my Capital One?

Anonymous — Sat, 19 Mar 2022 14:01:47 GMT

Thanks for the advise guys, the capital one account was my first ever card. I've never carried a balance and have always payed off the month before the balance is due on all my cards. I may sound entitled but that was just because capital one customer service was rude and dismissive, I started the conversation very polite and it got rocky with her fast. I kindly asked if there was anything she could do to lower the APR as I've never missed a payment. When I brought up my American Express with much lower rates and much higher cap she got combative and told me I was going nowhere with cap one and that I was a high risk customer. American Express customer service was opposite, totally polite, worked with me to lower APR and had a follow up email. I'm not asking for the best of the best as I'm young, but 28% is highway robbery and loansharking. I'm not going to accept that when I get offers in the mail from Chase for the Saphire Preferred and other Amex cards every day for mid teens interest rates and cash rewards is all. It's not that I plan to lay the interest, it's just the premise of it. I do truly appreciate the feedback, and that is great news that closing it shouldn't be too detrimental. That was my biggest worry.

Re: Should I close my Capital One?

Anonymous — Sat, 19 Mar 2022 14:21:09 GMT

Also I understand Capital Ones point of view better now, I see what you guys mean by bucket cards. So they basically keep their beginner accounts where they stand and you have to get out of that account as you build credit. Cap One did upgrade me to a quicksilver account sometime last year but rates and limit didn't change which is strange. That was done automatically through their app.

Re: Should I close my Capital One?

Remedios — Sat, 19 Mar 2022 14:45:53 GMT

@Anonymous wrote:
Thanks for the advise guys, the capital one account was my first ever card. I've never carried a balance and have always payed off the month before the balance is due on all my cards. I may sound entitled but that was just because capital one customer service was rude and dismissive, I started the conversation very polite and it got rocky with her fast. I kindly asked if there was anything she could do to lower the APR as I've never missed a payment. When I brought up my American Express with much lower rates and much higher cap she got combative and told me I was going nowhere with cap one and that I was a high risk customer. American Express customer service was opposite, totally polite, worked with me to lower APR and had a follow up email. I'm not asking for the best of the best as I'm young, but 28% is highway robbery and loansharking. I'm not going to accept that when I get offers in the mail from Chase for the Saphire Preferred and other Amex cards every day for mid teens interest rates and cash rewards is all. It's not that I plan to lay the interest, it's just the premise of it. I do truly appreciate the feedback, and that is great news that closing it shouldn't be too detrimental. That was my biggest worry.

Hello and welcome to the forums

Whomever you talked to couldn't help you, and unless you received offer for temporary apr reduction, no one there could help you.

So, she wasnt "rocky" or "combative", she was faced with "you people! Amex and Disco gave me this and that"

I mean, could you call Pepsi and ask them to be more like Coke? You think Pepsi rep could help you with that?

I think your perception of what's possible and what you wanted clouded your judgement on responses you were getting. CSR isn't dismissive, they simply don't have the ability. Since they don't have the ability to appease you, how do you think their day is going when they have customer on the phone insisting on something they cannot do, bringing up.other entities etc.

Cards aren't coupons, you don't get to waive Walmart prices at Whole Foods and ask them to match it.

As far as being high risk customer, she wasn't lying. When you applied, you were a high risk customer because of little or no credit history. Because of Cap One's business model, their cards are stuck in time.

Card you have is and will be reflection of your credit when you applied, just like if you applied for a different C1 card now, it would be a reflection of your credit now, not three years ago.

If you never carried balance, then your APRs are completely irrelevant. If you want lower APRs in case you need to carry balance, 18% is still considered bleeding money, so no huge gains there. If you want low APR, go with CUs and use your other cards based on their rewards and not on some perceived APR injustice.

If APRs are this important to you, do your research before applying, go with CUs or lenders that may reduce them on demand.

Closing cards one doesn't want or need is a reasonable course of action.

Getting mad at terms and closing cards because you didn't get what you by your own admission dont need (no balances-apr irrelevant) is setting yourself up for life of feeling wronged.

In your case, closing won't affect aging metrics for a while, it will affect other metrics (albeit temporarily) such as number of accounts with balances, number of revolving accounts with balances, etc.

Re: Should I close my Capital One?

NRB525 — Sat, 19 Mar 2022 15:04:29 GMT

@Anonymous wrote:
Just graduating college and have had this card for years. Interest is 28%. I have an American Express at 18% and a Discover at 15%. I called Capital One and told them both Amex and Discover give me 5x higher limits and over 10% lower APR. customer service basically told me I was a nobody and to eff off and that they will never lower my APR. How much will it ding my credit to close my account with this trash company? Never missed a single payment in 3 years and have always been employed. What a joke capital one is. Haven't even used the card because they offer no rewards and terrible rates. Mainly concerned about the damage done closing an account as I've never done so.

Congrats to your younger self on getting approved for a no-AF Capital One card with no credit history. They've provided you with an account to help you build credit all these years.

CapOne sets up such accounts based on the profile of the person at that time, and doesn't change it even when the circumstances of the person changes.

If you want a better APR and higher limit, apply for another CapOne card. If you don't want to pay interest, pay the entire balance each month. If you don't want to deal with any of that, close the card.

But don't forget they gave you a card when you were early in your adulthood, and that's a valuable thing for a bank to do, for your long term financial health.

Re: Should I close my Capital One?

SUPERSQUID — Sat, 19 Mar 2022 15:54:30 GMT

@Anonymous wrote:
Just graduating college and have had this card for years. Interest is 28%. I have an American Express at 18% and a Discover at 15%. I called Capital One and told them both Amex and Discover give me 5x higher limits and over 10% lower APR. customer service basically told me I was a nobody and to eff off and that they will never lower my APR. How much will it ding my credit to close my account with this trash company? Never missed a single payment in 3 years and have always been employed. What a joke capital one is. Haven't even used the card because they offer no rewards and terrible rates. Mainly concerned about the damage done closing an account as I've never done so.

I had 6 cap 1's before my bk7, they hardly moved in cl or interest. post bk7 i have 3 cap 1's. my platinum is now a QS, my first cli on the card was 300 - 1800. in november i was approved for a savor one no af 3k sl. my first card was the kohls in oct/20 which started out at 300 but now 1500. all my cap 1's are high interest 26.99. I pay in full so i dont care what the interest is. I have to say i am quite happy with my cards with them, i use them regularly. the QS gives 1.5 pct cb, and for groceries i use the savor one 3 pct cb. the kohls card gives some generous coupons.

I only had to call customer service once in the last year and it was for a website glitch. pif is the way to go with them, their cb is easy, quick, and has many options for redemtion.

Re: Should I close my Capital One?

NoMoreE46 — Sun, 20 Mar 2022 13:58:47 GMT

OP,

I get your frustration. Some hate CapOne some love CapOne.

When I got started with them, I had a low limit card with an AF at 25%.
It has been nine years and they still refuse to lower my rate.

However, I have owed and have paid $0.00 to them interest. On the contrary, since the conversion of that platinum card to my non AF Savor, CapOne has rewarded me about $750 cash back....

Re: Should I close my Capital One?

Vuby22 — Sun, 20 Mar 2022 16:25:01 GMT

Yes don't take it personally, as half of the people here have burned or will burn these companies. It's just business. If you don't like the terms then move on to better cards/terms. Pretty simple. You only need optimal scores if you are trying to get the lowest rate on something. If you are then hold onto it til you get it.

Re: Should I close my Capital One?

Crimsonglory — Sun, 20 Mar 2022 18:21:07 GMT

I think it's timing. For a while, if there was an offer going, I could call Cap One and a rep would put me on the offer. (Usually something like 20% or 18% APR for 6 months). This was helpful when forced to carry a balance. I would do this from time to time when I remembered to do it. However, it seems once the pandemic hit, it was nothing. No offers. No help. I was able to pay my bills, but they told me all they offered people who were in dire straits was 1 month not having to pay their bill. That's it. 1 month. Meantime, Discover lowered my APR to 6% for 6 months.

I was getting offers to do a BT on Discover at 0% for 12 months, so I paid off my Discover, transferred my Cap One balance, and called it a day. The balance will be paid by June and all I will do with Cap One is small purchases once in a blue and pay it off the day after charging. I increased my score by 80 points, have had them 11 years and they still won't lower my 25% APR or upgrade me. Like you said, they are absolute trash.

Re: Should I close my Capital One?

SirMilo — Sun, 20 Mar 2022 19:58:31 GMT

Hello OP!

I feel your frustration and have similar feelings about Cap1 and Chase but I also have to give credit where due although I think "trash" might be a little harsh. I might consider Chase trash (explanation below) but lots of people love them. Even though I have a problem with Chase, that doesn't necessarily make them trash.

A little backstory for you... declared BK in 2006 due to the wife becoming disabled and being unable to work which caused us to fall behind quickly on all bills since our income was reduced 50% literally overnight. I ended up having around $5k discharged with Cap1 being my only credit card at the time and using it trying to keep my head above water. Long story short, Cap 1 offered me another card immediately after hosing them for $5K. It had a low credit limit, which is absolutely understandable, but I was very appreciative that they would step up a 2nd time and help me rebuild my credit. This card, received in 2006, has grown $250 in 16 years with a perfect payment history for the last 190 MONTHS. Yes, I could be upset about it and close it but here we are, 16 years later, and the card is still open because I don't carry credit card balances. It is also amusing to me after all these years that it is one of my lower interest rate cards at 9.9%. I've decided that with my next card having been issued in 2016, the AAoA is reason enough to keep the Cap1 open and used occassionally. I realize that your AAoA may not come into play too much if you were to close it since you have a thin profile.

All that I am trying to relay to you is that you are in your credit infancy and things will improve for you as time goes on with responsible use. Never assume that a lender owes you anything. I could be bent amount my Chase Freedom that was opened in 2016 having the lowest credit limit by at least 50% (besides the bucketed Cap1) and over 2x higher interest than all of my other cards (next highest interest is 11.9%) when my FICO credit score was over 800. I keep the Chase card since it has no AF and use it only for the wifes prescriptions for 3% back every month. I reward Chase with less than $5 spend monthly since they felt the need to insult me. Did I deserve better treatment? I thought so but, as others have stated, I am only a number to them. Having said this, Chase owes me nothing so I moved along and found better terms and limits elsewhere. Just give it time.

Re: Should I close my Capital One?

Anonymous — Sun, 20 Mar 2022 20:31:17 GMT

Ended up talking to my dad about it and he echoed what all of you said, he started with a Cap One years ago and he said they wouldn't lower his interest after like 20 years of on time payments. He said cap one is good to start with to build up then you move on. That was nice of them to extend you credit after a BK too, so I suppose at the end of the day it comes down to a different business model. Understandable.

Re: Should I close my Capital One?

Horseshoez — Sun, 20 Mar 2022 21:41:19 GMT

What is unsaid in this thread is, while CapOne does seem to bucket starter cards; the bucketing in and of itself, does NOT mean they won't approve you for a different card with a much higher limit and lower intrest rate. I have read numerous reports here of folks with a $500 bucketed Platinum or Quicksilver card applying for say, a Savor One or Venture One, and being approved for starting limits in excess of $10,000.

I'm actually toying with testing this theory next month when my youngest inquiry (and associated newest CC) age out to 13 months. I currently have a what probably qualifies as a "starter" Quicksilver card (which I got after my Chapter 13 was discharged) and of late CapOne has been sending me numerous E-Mails saying, "To thank you for being a loyal customer with a great payment history, we’ve pre-approved you for a SavorOne Mastercard® offer." I currently only have a total revolving credit limit of $17,800, which is several times more than I spend in any given month, and since I pay everything off prior to each due date, I certainly don't need any more credit; if I do opt to apply I'll report back what kind of limit and interest rate they offer.

While on the subject of interest rates, personally I could care less if the rate was 50%, I still wouldn't pay any interest because, as mentioned above, I pay everything off prior to each due date.