topic Re: Considering closing Cap One in Credit Cards

Considering closing Cap One

bichonmom — Sat, 19 May 2012 09:18:11 GMT

I'm thinking about closing my $500 Cap One card. It turned 1 year in April. Mostly, I feel like it's cluttering up my credit portfolio with a measly $500 CL, which makes it virtually impossible to use. While I am grateful to Cap One for extending me credit so I could rebuild, I definitely consider this a weed.

My next oldest card, I got in June of last year.

The Pros:

At this point, it's my oldest card (except for Amex backdating).

There is no AF

The Cons:

It has a piddly $500 CL that will probably never go anywhere and makes it impractical to use.

I really don't like Cap One's CS, don't feel valued as a customer, etc.

No rewards

I'd appreciate your thoughts about whether or not I should close it. Thanks!

Re: Considering closing Cap One

OhioCPA — Sat, 19 May 2012 09:55:54 GMT

Since there is no AF and it is your oldest TL, I see no reason to close it. Just SD it and either use it occassionally to keep it open or let them close it from lack of use.

Re: Considering closing Cap One

Anonymous — Sat, 19 May 2012 11:25:49 GMT

Your score is in the 700s and you really do not need it. Cap1 increases CLs very slowly. I have a Cap1 rewards card that started at 500, 6 months later 750 and then it sat at 750 for 2 years before they jacked it up to 3750. I do agree that it looks bad when your account is viewed, does this affect the CLs that you are given by other CCs? It shouldn't, but we can never be sure how they think. If you do close it, it will stay on your report for 10 years and continue to add to the AAoAs until it falls off.

Now if you do not want the card, do not use it and feel it is holding you back, should you close it? Will losing that $500 affect your util? Do you have two other major cards (one you use regularly and one to fall back on incase something happens to the first)? As long as losing the $500 will not cause your util to go up too much and it is not your fall back card, go ahead and close it. Personally I have two Cap1 accts and I am going to close the small one when the AF comes due and thinking about closing the big one as well, even though I will lose a total of $4500 in available credit. Just like you, I feel that Cap1 is a weed that is holding back the present growth of my credit gardent

Re: Considering closing Cap One

marty56 — Sat, 19 May 2012 11:49:32 GMT

I would not close it. A TL is a TL and with no AF and a clean payment history, it will continue to help your FICO score. Closing a card might blacklist you with a CCC and even though you may never want to do business with them again, you may want to do business with someone they underwrite.

Re: Considering closing Cap One

Anonymous — Sat, 19 May 2012 12:01:42 GMT

Mine had a $3350 limit and was my oldest CC - I closed it this week. Before I did, I really grappled with it - and thought I might be doing the wrong thing. After I did it, I felt lighter; one less thing to worry about, no more hearing those scripted explanations about what a great customer I am, but..... And really, I am not one of these people who wants/ or needs a bunch of credit cards in her wallet.

Now, I am down to 2 major cards - Barclay MC and Discover - I do not know about the Barclay - but especially now that Discover has no foreign transaction fees -there simply wasn't anyting Cap 1 could offer me that Discover could not. Not only does Discover offer more, but IT WIL:L grow with me, whereas if I wanted more from Cap 1 I had to apply for another card, for which I did, and was declined. Before closing the Cap 1, I called Discover and asked the rep to remind me of why I would want to keep it overr all other cards -of course I was going to anyway - but when he was done - NO BRAINER! Cap was closed - and I do not miss it at all. By the way, I called Barclay too, but ummm... they were not too sure of much.

Most of the negative suff, including my BK, comes off my CR by the end of the fall next year. That is a great amount of time to really work the Discover and Barclay - maybe get some bonuses like lower APR - CLIs - And we will see if I get a good enough bump in score - to move on to a prime Visa and/or a very low interest / high CL one from my credit union. Move forward and don't look back! You have such great scores; I assume you also have some great cards with worthwhile limits. That Cap 1 sounds like a representation of a place where you USED to be! If it is a Plat MC - I can tell you, it will not go beyond $3000 - Let it go now, and look for and/or feed on greener pastures.

I am not saying that Cap 1 is not good. Trust me, when I was just starting out - and a lot of folks were bad mouthing Cap 1 - I was very grateful because they were being very good to me when I first started rebuilding. I am typing this for those who were in my situation who may read this. There are times in our credit history for some of us when Cap 1 is a big accomplishment, and to read all of the negative about Cap1 puts a damper on your feeling of pride for having gotten one. But the good thing is that with proper credit management, we get to a point where we out grow it ... which is we want to do, isn't it?

Re: Considering closing Cap One

Anonymous — Sat, 19 May 2012 12:06:41 GMT

Well put Changing!!! I agree with you. When I first got Cap1 it was a nice move from Credit First and HSBC. Yet Cap1 does have a flawed business model. It is like they want to keep you in subprime land even when your are a prime customer. If they actually moved people up into prime as they improved their scores I think they would find that they would end up with very loyal customers. They are wasting a lot of good will!

Re: Considering closing Cap One

RyVision — Sat, 19 May 2012 12:13:21 GMT

Bichonmom;

When you say it's your oldest card, is that 3 years or 9? If it's 3 years, with your AMEX TL's, it really doesn't mean much when it comes to AAoA (esp since it will remain there for 10 more years). If it's more like 9 years, then you have reason to think of leaving it open another year (when you're more comfortable with AMEX, being it's obvious you're still unsure about your rebuilt status and credit confidence, not how you handle it, but the way the credit system can do things).

The only positive thing I see for keeping it if any is what I stated above. I know how you feel, I was hesitant to close CreditOne even though it wasn't something I would have got in the first place had I realized it was what it was (instead of a Cap 1 offer). I still have my 2 Cap 1 750s, I'll probably keep them a while, I don't feel they look as bad to manual review as CreditOne or FirstPremier might (not by a long shot lol SO glad I never had FP).

It's really a coin toss on what you feel most comfortable doing. I don't think closing it would have any negative effect at all, but with no AF and if it were over 5 or so years old, you might feel better leaving it another year before deciding.

Re: Considering closing Cap One

Anonymous — Sat, 19 May 2012 14:30:06 GMT

Personally, I'd close it.

#1: It's Capital One.

#2: I have an AMEX, so in about 10 years, when that tradeline comes off from Cap, if the backdating for AMEX is still around, I could just apply for a card, and BAM, instant AAOA all over again.

#3 It's Capital One.

If you had that for a year and it hasn't even moved in the CL, it just might stay there... why, because the fact that you want to close it means that you aren't even using it.

If closing a $500 card burns them so much that they'd never open another card/account/mortgage/loan with you ever again... there's hundreds of more banks out there that would love to have your business.

If it isn't working for you and you aren't making it work for you, no reason to really keep it. You probably won't miss the utilization either.

Re: Considering closing Cap One

ILBrian — Sat, 19 May 2012 18:20:04 GMT

I would say leave it open, let them close it... Backdating helps the average age but doesn't replace the payment history of the card once it falls off.

Re: Considering closing Cap One

Anonymous — Sat, 19 May 2012 22:19:02 GMT

@Anonymous wrote:
Well put Changing!!! I agree with you. When I first got Cap1 it was a nice move from Credit First and HSBC. Yet Cap1 does have a flawed business model. It is like they want to keep you in subprime land even when your are a prime customer. If they actually moved people up into prime as they improved their scores I think they would find that they would end up with very loyal customers. They are wasting a lot of good will!

Agreed! It is as if having not only proven your loyalty, as well as your ability to properly manage credit, means nothing! Why should any customer, who has done EVERYTHING by the book for years per Cap 1's instructions, have to take more risks (HP on THREE CR) just to get a card that is more indicative of their improving credit history? The initial risk on both parties' part was taken - in my case - 4 years ago. In that time, worthiness was proven. They seemed truly unconcerned about good will. When I called to close, there was no attempt whatsoever to even find out why. Beyond my saying I was frustrated with Cap 1, the two CSRs I spoke with had no interest in knowing anything further. The card was closed within 3 minutes, if that.

As for just holding on to cards - It isn't something I am a fan of. Having credit cards is risky enough - The last thing I need is to have one more account out there vulnerable to attack - especially one from which I gain no benefit! Too, I look at it this way, the loss in utilization space, will encourage me to mange my credit card debt even better!

In the OP's case, really - how much is keeping a $500 Cap 1 card open or choosing to close it going to matter to your credit profile? Once again, not to hate on Cap 1 - I really thought and had hoped that I would keep an account with them for the long haul. Don't miss it, though!

Re: Considering closing Cap One

namvet — Sat, 19 May 2012 22:33:11 GMT

Cons you listed are reason enough to close this card. Cap One did it's job for you.

Re: Considering closing Cap One

Anonymous — Sat, 19 May 2012 22:55:39 GMT

It is nice to have a extra card that you don't normally use when something comes up. For instance, your wallet is stolen and you can't use your regular cards for a week, while you get replacements. I would sock drawer it.

Re: Considering closing Cap One

bichonmom — Sat, 19 May 2012 23:04:53 GMT

Well, so far it's even: 4 to open and 4 to close. I was really expecting a resounding answer in one direction. Everyone has made good points! I'm still on the fence, but leaning more towards closing it.

I think some of my hesitancy is from all those years when I couldn't get credit to save my life. So now, I'm reluctant to close any acct., even a $500 cap one.

Re: Considering closing Cap One

Anonymous — Sat, 19 May 2012 23:05:26 GMT

Throw the card high in the air. If it lands face up, keep it. Face down, cancel.

Re: Considering closing Cap One

namvet — Sat, 19 May 2012 23:11:28 GMT

@bichonmom wrote:
Well, so far it's even: 4 to open and 4 to close. I was really expecting a resounding answer in one direction. Everyone has made good points! I'm still on the fence, but leaning more towards closing it.

If you do close it then that will be one less thing on your mind. Your posts indicate to me that you really don't like the card so it's your call. Credit wise i don't think it will be a plus or minus if you close it. I didn't give you my vote in the last post so since it's tied i would vote keep it open and just pull it out once a year give it some use. I've never had a hate/love relationship with a card before but it appears that there are many on this site that do. Good luck.

Re: Considering closing Cap One

bichonmom — Sat, 19 May 2012 23:21:59 GMT

@Anonymous wrote:
Throw the card high in the air. If it lands face up, keep it. Face down, cancel.

lol

Re: Considering closing Cap One

bichonmom — Sat, 19 May 2012 23:24:29 GMT

One concern I have is that none of my cards have gone over a year yet. I closed my other cap one before the AF hit, and my Old Navy just upgraded to a visa at 1 year. So, this would be my only card to have history longer than one year. Maybe that will help my FICO? Is that a factor? Someone did post about the history, which I don't have with my Amex.

Re: Considering closing Cap One

Anonymous — Sun, 20 May 2012 01:08:24 GMT

@bichonmom wrote:
One concern I have is that none of my cards have gone over a year yet. I closed my other cap one before the AF hit, and my Old Navy just upgraded to a visa at 1 year. So, this would be my only card to have history longer than one year. Maybe that will help my FICO? Is that a factor? Someone did post about the history, which I don't have with my Amex.

My guess is the FICO effect is neglible, might make more difference for manual review. IMO, keep it for awhile since you have such short history.

Re: Considering closing Cap One

bichonmom — Sun, 20 May 2012 01:15:35 GMT

@Anonymous wrote:
@bichonmom wrote:
One concern I have is that none of my cards have gone over a year yet. I closed my other cap one before the AF hit, and my Old Navy just upgraded to a visa at 1 year. So, this would be my only card to have history longer than one year. Maybe that will help my FICO? Is that a factor? Someone did post about the history, which I don't have with my Amex.
My guess is the FICO effect is neglible, might make more difference for manual review. IMO, keep it for awhile since you have such short history.

Yeah. I'm thinking that maybe I'll just keep it for another year and then cancel. I'd really like to dump it because it feels like clutter, but since my history is so short, maybe I should keep it for now and just SD it. If they cancel for non-activity, then that's fine.

Thanks, everyone, for the replies!

Re: Considering closing Cap One

LS2982 — Sun, 20 May 2012 01:33:23 GMT

Don't close it!!!!!!!!

You'll make Peggy sad.........................................