topic Re: Done with Capital One - Need advice in Credit Cards

Done with Capital One - Need advice

TeeandDee — Mon, 14 May 2012 16:38:22 GMT

Hi,

This is the second month in a row that Capital One has placed a hold on my payment by not making the funds available. I've had this acccount for almost two years with excellent payment history, and now they start doing this? It's like they sense my credit is better and that I don't need them anymore so they are trying to aggravate me! LOL!! Well, I'm over it!

If I close it, will my AAOA drop? I mean, the account will still be on my Credit Report right? It would be just be listed as "Closed'. I could always just sock drawer it to help with my utlization and not look back, but it's a rebuilder card that has an Annual Fee, so I certainly would not want to pay that again. Or should I wait for the next Annual Fee time (Jan) and then close it?

I am thankful for Captial One for giving me a chance (when no other company would) to improve my credit enough to get the new "prime" credit cards I now have, but I think our relationship has run it's course!

Re: Done with Capital One - Need advice

MarineVietVet — Mon, 14 May 2012 16:43:26 GMT

@TeeandDee wrote:
Hi,
This is the second month in a row that Capital One has placed a hold on my payment by not making the funds available. I've had this acccount for almost two years with excellent payment history, and now they start doing this? It's like they sense my credit is better and that I don't need them anymore so they are trying to aggravate me! LOL!! Well, I'm over it!

If I close it, will my AAOA drop? I mean, the account will still be on my Credit Report right? It would be just be listed as "Closed'. I could always just sock drawer it to help with my utlization and not look back, but it's a rebuilder card that has an Annual Fee, so I certainly would not want to pay that again. Or should I wait for the next Annual Fee time (Jan) and then close it?

I am thankful for Captial One for giving me a chance (when no other company would) to improve my credit enough to get the new "prime" credit cards I now have, but I think our relationship has run it's course!

Closing it will not affect either your AAoA or credit length history. It will continue to report for generally 10 years after closing. You can go here to read more about Closing Credit Cards.

Re: Done with Capital One - Need advice

Anonymous — Mon, 14 May 2012 16:43:46 GMT

You already paid the AF back in January. So, if it were me, I'd pay the account down to $0, SD the card for the rest of the year and then close it in December. The account will still stay on your reports for the next 10 years, so your AAoA won't be affected until then. By that time, you'll have other accounts that will have aged, so the effect should be quite minimal.

Congrats on getting past the rebuilder card stage!

Re: Done with Capital One - Need advice

TeeandDee — Mon, 14 May 2012 16:44:48 GMT

@MarineVietVet wrote:
@TeeandDee wrote:
Hi,
This is the second month in a row that Capital One has placed a hold on my payment by not making the funds available. I've had this acccount for almost two years with excellent payment history, and now they start doing this? It's like they sense my credit is better and that I don't need them anymore so they are trying to aggravate me! LOL!! Well, I'm over it!

If I close it, will my AAOA drop? I mean, the account will still be on my Credit Report right? It would be just be listed as "Closed'. I could always just sock drawer it to help with my utlization and not look back, but it's a rebuilder card that has an Annual Fee, so I certainly would not want to pay that again. Or should I wait for the next Annual Fee time (Jan) and then close it?

I am thankful for Captial One for giving me a chance (when no other company would) to improve my credit enough to get the new "prime" credit cards I now have, but I think our relationship has run it's course!
Closing it will not affect either your AAoA or credit length history. It will continue to report for generally 10 years after closing. You can go here to read more about Closing Credit Cards.

Excellent!!! Thanks MarineViet Vet!

Re: Done with Capital One - Need advice

Anonymous — Mon, 14 May 2012 16:44:52 GMT

No, the closed account will stay on your report up to 10 years after you close it and continue to be a positive for your AAoA. My oldest account is an auto loan I opened in 2001 and paid off in 2006. In theory it should stay on my report till 2016, YMMV.

If you really want to get rid of the card then I would SD it until the next AF. That way you get what you paid for, a year with the AF and it continues to help your util. I am going to be closing one of my Cap1 accts when the AF comes due, unless they give me a massive increase in Jan as well.

Re: Done with Capital One - Need advice

namvet — Mon, 14 May 2012 16:47:26 GMT

Yes it will lower you AAofA if you close the card but it will continue to report on your credit reports for around 10 years. If you are not satisfied with their service and you don't like paying the annual fee then close it. I assume you don't need the credit line?

Re: Done with Capital One - Need advice

bichonmom — Mon, 14 May 2012 16:49:20 GMT

@Anonymous wrote:
You already paid the AF back in January. So, if it were me, I'd pay the account down to $0, SD the card for the rest of the year and then close it in December. The account will still stay on your reports for the next 10 years, so your AAoA won't be affected until then. By that time, you'll have other accounts that will have aged, so the effect should be quite minimal.

Congrats on getting past the rebuilder card stage!

Re: Done with Capital One - Need advice

MarineVietVet — Mon, 14 May 2012 17:00:20 GMT

@namvet wrote:
Yes it will lower you AAofA if you close the card but it will continue to report on your credit reports for around 10 years. If you are not satisfied with their service and you don't like paying the annual fee then close it. I assume you don't need the credit line?

No it won't. Your AAoA is not impacted by a card closure; at least not immediately.

Closing Credit Cards

Re: Done with Capital One - Need advice

TeeandDee — Mon, 14 May 2012 17:36:35 GMT

@Anonymous wrote:
You already paid the AF back in January. So, if it were me, I'd pay the account down to $0, SD the card for the rest of the year and then close it in December. The account will still stay on your reports for the next 10 years, so your AAoA won't be affected until then. By that time, you'll have other accounts that will have aged, so the effect should be quite minimal.

Congrats on getting past the rebuilder card stage!

Thanks tinuviel! It was a long journey and a lot of hard work, and I'm thankful to have finally made progress!

Re: Done with Capital One - Need advice

TeeandDee — Mon, 14 May 2012 17:39:51 GMT

I decided to wait until December before the Annual Fee hits to close the account. In fact, to close both of the Capital One credit cards I have. One will be two year's old by then (Secured cc) and the other will be a year. For now, both will go into the sock drawer.

Re: Done with Capital One - Need advice

namvet — Mon, 14 May 2012 18:54:08 GMT

@MarineVietVet wrote:
@namvet wrote:
Yes it will lower you AAofA if you close the card but it will continue to report on your credit reports for around 10 years. If you are not satisfied with their service and you don't like paying the annual fee then close it. I assume you don't need the credit line?
No it won't. Your AAoA is not impacted by a card closure; at least not immediately.

Closing Credit Cards

You correct that the AAoA won't be impacted immediately but it will when the closed card stops reporting. Even though most closed accounts report for 10 years, there is no guarantee of the reporting time.