topic Re: CLose or wait? in Credit Cards

CLose or wait?

afbar1114 — Sun, 21 Oct 2012 02:20:55 GMT

I am wondering what is better to do close a card or wait for them to close it for inactivity?

Re: CLose or wait?

Epcot — Sun, 21 Oct 2012 02:21:59 GMT

Is there an AF? Any reason why you don't care to keep it open?

Re: CLose or wait?

afbar1114 — Sun, 21 Oct 2012 02:23:56 GMT

two of them have an AF. another one will never move from current CL.

Re: CLose or wait?

Revelate — Sun, 21 Oct 2012 06:15:19 GMT

FWIW I'd never let a card close due to inactivity; while FICO might not care, I don't want odd questions during an underwriting phase asking about a card which was "closed by credit grantor."

Re: CLose or wait?

Anonymous — Sun, 21 Oct 2012 06:21:25 GMT

@Revelate wrote:
FWIW I'd never let a card close due to inactivity; while FICO might not care, I don't want odd questions during an underwriting phase asking about a card which was "closed by credit grantor."

this is definitely a good reason not to let them close it due to inactivity, even more if they have an AF.

Re: CLose or wait?

LS2982 — Sun, 21 Oct 2012 11:34:32 GMT

@Revelate wrote:
FWIW I'd never let a card close due to inactivity; while FICO might not care, I don't want odd questions during an underwriting phase asking about a card which was "closed by credit grantor."

I agree.

Appbar, if this is the cap1 account your asking about keep it. I know the AF thing isn't nice but try out the executive office line and see if they can increase you to make it worth it.

Re: CLose or wait?

afbar1114 — Sun, 21 Oct 2012 11:42:39 GMT

If they cant waive it close it?

Re: CLose or wait?

Anonymous — Sun, 21 Oct 2012 13:13:54 GMT

I look at credit all the time... Scores are nice, but really don't tell the whole picture. Someone that has had late payments and closed accounts that say Closed by Grantor and then you look at High credit, Credit limit which may now be lower because they balance chased you, just looks bad.

I pay for USAA credit monitoring and score watch... Because I care about my Credit/Score. Honestly an annual fee is the least of my concerns. Paying my bills on-time and watching my utility and managing spending on 15 different cards is.

I strongly believe that if you are not going to use a card. Sock Drawer it and still log in and check the balance every two weeks and use it once every two months or just close it.

Re: CLose or wait?

afbar1114 — Sun, 21 Oct 2012 13:40:43 GMT

So it seems like i should close it. Havent used it in five or so months anyways. I will never use it again. I hope it doesnt hurt with discover

Re: CLose or wait?

Anonymous — Mon, 22 Oct 2012 11:13:59 GMT

Some interesting discussions in this thread! In the past I've always heard here that you should just let it go on it's own if there is no AF?

Re: CLose or wait?

maiden_girl — Mon, 22 Oct 2012 11:26:38 GMT

If your card has an AF and its not benefiting you...I'd just close the account. A closed account will still be factored into your AAoA for 10 years.

Re: CLose or wait?

distantarray — Mon, 22 Oct 2012 11:28:03 GMT

can't he PC the ones with the AF to ones without?

Re: CLose or wait?

maiden_girl — Mon, 22 Oct 2012 11:32:54 GMT

It depends on the CCC. I'm not entirely sure what card the OP is referring to tho. If its Cap1...they will not PC anything. They simply tell you to apply for another card. Not so sure if they waive AFs.

Re: CLose or wait?

distantarray — Mon, 22 Oct 2012 11:41:37 GMT

@maiden_girl wrote:
It depends on the CCC. I'm not entirely sure what card the OP is referring to tho. If its Cap1...they will not PC anything. They simply tell you to apply for another card. Not so sure if they waive AFs.

capital one the worst company for inquiries and the worst company for AAOA =\

Re: CLose or wait?

laboi_22 — Mon, 22 Oct 2012 11:55:52 GMT

This is also a discussion we've had many times. I would close the account if you feel like you need to close it. There is nothing wrong with closing an account. I think the last time we discussed this you got a bit upset about us telling you that you should keep it open. Your argument was that you don't want to leave a card open, even if it has AF because you had to use it for stuff you didn't need to keep it open. So what has changed about your feelings with closing cards? Here is how it affects you simple and easy. Make your decision based off of this:

1) Closing a card will not directly affect your AAOA right away. It will remain reporting on your CR for the next 10 years as a revolving account that has been closed.

2) It will affect, at least initially, your UTL since that credit amount will no longer be open. As long as your balances on your other accounts are down, you have nothing to worry about here. Also where UTL is concerned, you really don't have to worry about that so much unless you plan on apping again for something new

Simple, easy. Close if you want to. Don't close if you don't want to. Either way there is not much that will affect your score. I do feel like we will discuss this again with you soon though. Hopefully not. Good luck!

Re: CLose or wait?

TiggerDat — Mon, 22 Oct 2012 11:56:10 GMT

@distantarray wrote:
can't he PC the ones with the AF to ones without?

That depends on the company. (I am assuming we are talking about Capone and will approach my answer with what I know about them.) They will tell you to continue to use you card and reviews are made on accounts.

Translation: We review accounts for our Prime Cardholders and others simply have to wait and listen to our rhetoric.

Capone has a policy to simply let you close accounts and reapply. This helps them as they know most people will simply keep the card open and hope for a change. If their limit is low it keeps the score low. If the score is low it takes a much longer time for other companies to grant them credit. If this happens then they must remain a cardholder longer paying fees. If you do reapply and your score is low, then they will have more opportunity to collect fees from you if you accept the second, third, etc. If you default on one then you are more likely to default on another. If you reapply it lowers your score and keeps you with them longer paying fees. I had 2 cards with them, both with a fee and I asked for them to waive my annual fee on one after the second year, they said 'no' I said 'go.' The other one got the AF waived when I asked about it. (Actually, through careful wording and not asking for the AF to be waived, but removed permanently; they offered to waive it and did. They offered that 3 times - Ha Ha to them. I can't be faulted for their silly mistakes, but I encourage you to try it.)

Even if you get the fee removed every year, it is still better to paying it until such a time as they start treating those of us who are doing the right thing, properly. So ask them to remove or waive it. Keep the card open as long as you can, it helps your score. If you PIF then apply somewhere else that might have a high interest rate and no annual fee. Barclays, GE, and WFNNB(Comenity) all have higher interest rates, but offer cards without fees. They will sometimes give you a better credit limit and opportunities to increase your limit over time. I got a good credit limit from Comenity Marathon Visa, but a horrible interest rate. When I got it, my score was boosted about 30 points. (I don't remember for certain, but I do know it was between 20 and 40, but I think it was closer to 40.)

If they waive the fee or PC you then use the card occassionally and simply pay it off. The only PC offer they have given me in 2 years was to lower the interest rate for a 9 month period of time. Even though I PIF, I took the offer. I figured it would help in later offers, although I might be wrong in that. It might mean, knowing them, that all I will get in the future is more offers to lower interest rates for a set period of time. I have sock drawed the card for a while as I am tired of waiting for a CLI and listening to their rhetoric.

For those who have their $39 fee cards, you should be aware that for the vast majority of them, if not all, they don't allow customer initiated credit limit increases. Yeah they tell you that you can ask for one, but it just simply means a letter will be generated telling that and they are reviewing their policies for credit limit increase. I think they have been reviewing that policy for the last six months. I think that is simply more rhetoric as it should never take that long to review a policy.

I dread the day my Household card is fully part of their system. While I am told it is not a subprime card, that might simply be Household rhetoric. It does have no AF, so at least that is a plus.

I hope some of this information is helpful to you.