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At what point do I cancel my CAP1 secured CC? NEW to all of this help!

Tnetsirk200
Established Member

At what point do I cancel my CAP1 secured CC? NEW to all of this help!

Hey folks, I have a questions about when a good time to cancel your secured CC is. Let me explain my situation and then you can give me your thoughts of what you would do. Advice is appreciated. 

I am in my mid 30's and brand new to credit. My mom put bills in my name when I was young and when I tried to apply for credit at 18, they said I couldn't because of stuff in collections and to get it off I had to prosecute my mom. Not sure if any of that was true but that's what I was told. So I just left it alone and figured I couldn't have credit and went about my life without it. Guess in hindsight that was good. I was not responsible enough at that age. Well I am at a point in life where I want to be able to finance a vehicle, and eventually buy a house and I know credit is everything. I honestly never even had a bank account until recently, when I found out I had to because eBay was no longer using PayPal to pay you. So I went to chase and got a bank account to continue my online venture and started looking up everything I could to learn about credit, how it works what your supposed to do etc. I started with a CAP1 SECURED and paid $300 to get a $300 limit about 8 months ago. My credit started and about 4 months later I got a credit one it was one of the few I could get accepted for with such new credit and a score of 680. It was for a $300 limit. I only charge $15-30 on each card and pay Ballance in full every month. Cap1 automatically upped my limit to $600 at 6 month mark. My credit was around 694 and only raising 1 point per month. This is vantage score 3.0 I am referring to.  I signed up for experian and my score was 715 but when I paid all my debt down to $0 my fico dropped 25 points to 690. Then 2 months later we went to get my step daughter a bed at mattress firm and I asked about financing and they gave me a line of credit with synchrony for $1000. That shot my score up to 720 until they reported the balance which was $680. I know about the 30% and to stay under that, so I tried to call and pay it they said I couldn't until November 17th when the statement happens. I called everyday to try and pay, and on the 17th I paid $400. The day the statement dropped hoping to beat them before they reported it to the bureaus. I didn't make it on time and it dropped my score down to like 660. I called synchrony and asked why I had a balance due when I paid $400. And I told the rep I was trying to pay before they reported but I didn't do it in time apparently. She said she would apply the payment of $400 towards next month. I got a letter in the mail stating they were updating the credit agencies of the change, and any payments from last month that were "deliquent" they would update the correct info to the bureaus. I was confused because I didn't have any, but they said they would fix it. I  honestly don't know how I got so lucky. They fixed the amount and re-reported only a balance of $260 to all 3 bureaus so I was below the 30%. My score went back up to 706. When I had the score of 715 right after I got the synchrony, and before they reported the large balance, I checked in credit journey I had a pre approved offer from chase for a number of cards. I choose to apply for the freedom and I got a status saying they needed more time to make a decision. I thought I was denied because usually you are when you get that message.  Then next day I logged into my chase bank and saw under checking and savings there was a credit card so apparently I was approved. I got the card in the mail a few days ago. Anyway now to my question. At what point do I cancel the capital one secured card. From browsing on the posts on this forum They say that graduating from a secured and unsecured Is random and not guaranteed. And also that they only give you a one-time CLI. But I've also seen other people saying that after 3 years they graduated their card. Basically I'm wondering what kind of hit closing that account would do to my credit? At what point do I close this card to get my 300 back? Do I call them and ask them if I can graduate my card? Should I try to request another CLI and just see what happens? If I knew they were going to keep giving me CLIs I would be fine with not closing it. But I also don't want to close it too soon and take a bigger hit to my credit that I can't get myself out of. I've done a ton of research and I just want to use credit responsibly to get a good score to be able to finance larger things. So is it worth it to cancel it or at what point do you cancel it? Basically I'm done applying for credit right now and just using it responsibly and getting that last $260 down to $0. I already paid another $30. My vantage score and fico are 705 & 706. All the others experian gives you like morgage and Bank score are 695's. Do I wait a while, ask for a CLI? ask to graduate to an unsecured? At what point do I cancel it to get my deposit back? I appreciate any help or thoughts! Is there something wrong with me obsessing over my credit? I pay for experian and monitor it constantly.  Lol I just really want to do it right and in my spare time in reading this forum and other info to try and learn as much as I can. Thanks for your input. 

Message 1 of 7
6 REPLIES 6
TheFIGuy
Established Contributor

Re: At what point do I cancel my CAP1 secured CC? NEW to all of this help!

Hey @Tnetsirk200,

 

Could you pretty please break this into smaller paragraphs. I honestly would love to help but being candid not going to read all that.

Message 2 of 7
GApeachy
Super Contributor

Re: At what point do I cancel my CAP1 secured CC? NEW to all of this help!

Time is on your side.

Probably the best thing to do at this moment is to let everything age.  When you're at the point to follow the AZEO method to maximize pts.  will be a great help to squeeze out the most pts. for your scores. (do a search for AZEO- don't have all tl's report 0 balance, have 1 tl report at least $10-20 to show you use credit and use it wisely every month)

How old is your oldest cc? (cap1 secured?) Probably best to not cancel until it's over 1 year, unless you really need the money. 

Diversify= having cards with different lenders/networks is a good thing generally.  You've already accomplished that.

Once tl's age you'll gain pts.

Once hp's age you'll recover from those too.

It's a matter of time and good pymt history that will count the most.

If you're not applying for anything else, lock your reports if you can....just to protect yourself from fraud and headaches.

Make sure autopay is scheduled to prevent any slip-ups as well. 

 

As mentioned above, how about breakup this one long paragraph into several to make it easy on the eye.  You'll probably get more responses to all of your questions better that way as well. GL!

 

"My Take Home Pay Don't Take Me Home"
Message 3 of 7
LaHossBoss
Senior Contributor

Re: At what point do I cancel my CAP1 secured CC? NEW to all of this help!


@Tnetsirk200 wrote:

Hey folks, I have a questions about when a good time to cancel your secured CC is. Let me explain my situation and then you can give me your thoughts of what you would do. Advice is appreciated. 

I am in my mid 30's and brand new to credit. My mom put bills in my name when I was young and when I tried to apply for credit at 18, they said I couldn't because of stuff in collections and to get it off I had to prosecute my mom. Not sure if any of that was true but that's what I was told. So I just left it alone and figured I couldn't have credit and went about my life without it. Guess in hindsight that was good. I was not responsible enough at that age. Well I am at a point in life where I want to be able to finance a vehicle, and eventually buy a house and I know credit is everything. I honestly never even had a bank account until recently, when I found out I had to because eBay was no longer using PayPal to pay you. So I went to chase and got a bank account to continue my online venture and started looking up everything I could to learn about credit, how it works what your supposed to do etc. I started with a CAP1 SECURED and paid $300 to get a $300 limit about 8 months ago. My credit started and about 4 months later I got a credit one it was one of the few I could get accepted for with such new credit and a score of 680. It was for a $300 limit. I only charge $15-30 on each card and pay Ballance in full every month. Cap1 automatically upped my limit to $600 at 6 month mark. My credit was around 694 and only raising 1 point per month. This is vantage score 3.0 I am referring to.  I signed up for experian and my score was 715 but when I paid all my debt down to $0 my fico dropped 25 points to 690. Then 2 months later we went to get my step daughter a bed at mattress firm and I asked about financing and they gave me a line of credit with synchrony for $1000. That shot my score up to 720 until they reported the balance which was $680. I know about the 30% and to stay under that, so I tried to call and pay it they said I couldn't until November 17th when the statement happens. I called everyday to try and pay, and on the 17th I paid $400. The day the statement dropped hoping to beat them before they reported it to the bureaus. I didn't make it on time and it dropped my score down to like 660. I called synchrony and asked why I had a balance due when I paid $400. And I told the rep I was trying to pay before they reported but I didn't do it in time apparently. She said she would apply the payment of $400 towards next month. I got a letter in the mail stating they were updating the credit agencies of the change, and any payments from last month that were "deliquent" they would update the correct info to the bureaus. I was confused because I didn't have any, but they said they would fix it. I  honestly don't know how I got so lucky. They fixed the amount and re-reported only a balance of $260 to all 3 bureaus so I was below the 30%. My score went back up to 706. When I had the score of 715 right after I got the synchrony, and before they reported the large balance, I checked in credit journey I had a pre approved offer from chase for a number of cards. I choose to apply for the freedom and I got a status saying they needed more time to make a decision. I thought I was denied because usually you are when you get that message.  Then next day I logged into my chase bank and saw under checking and savings there was a credit card so apparently I was approved. I got the card in the mail a few days ago. Anyway now to my question. At what point do I cancel the capital one secured card. From browsing on the posts on this forum They say that graduating from a secured and unsecured Is random and not guaranteed. And also that they only give you a one-time CLI. But I've also seen other people saying that after 3 years they graduated their card. Basically I'm wondering what kind of hit closing that account would do to my credit? At what point do I close this card to get my 300 back? Do I call them and ask them if I can graduate my card? Should I try to request another CLI and just see what happens? If I knew they were going to keep giving me CLIs I would be fine with not closing it. But I also don't want to close it too soon and take a bigger hit to my credit that I can't get myself out of. I've done a ton of research and I just want to use credit responsibly to get a good score to be able to finance larger things. So is it worth it to cancel it or at what point do you cancel it? Basically I'm done applying for credit right now and just using it responsibly and getting that last $260 down to $0. I already paid another $30. My vantage score and fico are 705 & 706. All the others experian gives you like morgage and Bank score are 695's. Do I wait a while, ask for a CLI? ask to graduate to an unsecured? At what point do I cancel it to get my deposit back? I appreciate any help or thoughts! Is there something wrong with me obsessing over my credit? I pay for experian and monitor it constantly.  Lol I just really want to do it right and in my spare time in reading this forum and other info to try and learn as much as I can. Thanks for your input. 


I read your post just fine and there are plenty of people to help, so don't worry about it. I wouldnt rerite it, but good for future reference.

 

There sre a few things: ignore Vantage score 3.0, no creditors use it. Sync bank uses Vantage 4.0 and you can get that score through your account.

 

Most creditors use FICO scores, so the one you get from EX is one I would take seriously. There is also EQ and TU, but at least having 1 Fico score to monitor is a start.

 

When you financed the mattresses, it was om for your score to go down. What is the point of having good credit if you take the scoring hit of opening a new account to just basically pay it off? I assume they had some promo for financing? Your score will fluctuate and that is ok. Especially since you are not applying for anything else, you do not need to keep your credit score maximized at all times. You can "pretty up" your report as needed before making another credit app.

 

When you let all of your credit cards report a $0 balance you get hut with the "all zero penalty" as you found out. Look into AZEO where you let only 1 bank card report a small balance (under 9% of CL) while the rest report $0 to see a boost score-wise.

 

Cap One did not graduate cards for over 2 years, so it was thought to just move on from Cap One, but just within the past week or so they started graduating cards again! You may want to hold off canceling it, as I believe there is no AF weighing you down, it is basically free to keep it open and only helping you whether or not you like the small limit and deposit being held. You cannot ask for a CLI and you cannot ask for graduation. It happens when it happens.

 

You only have a total of 3 CCs, 1 being a store card, so whether or not it graduates, I would keep it open. Score wise, you want at least 3-5 CCs (bank cards, preferably). So if you closed it, you would only have 2 Cards (including 1 store card).

 

Thin files like yours will have scores fluctuate more dramtacially and be less able to absorb changes in your credit profile.

 

I am not saying to run out and get 1-3 more CCs, just do it slowly, if you care to. If not, I certainly would not close the Cap One card.

 

Good luck!




Starting Score: 2•20 | EQ 550 | TU 498 | EX 505
Current Score: 7•21 | EQ [F8 645] [F9 651] [EQ5 684] [VS3 630] | TU [F8 717] [F9 692] [TU4 723] [VS3 643] | EX [F8 714] [F9 675] [EX2 681] [VS3 674]
Goal Score: 670 [X] TU [X] EX

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SO Starting Score: 2•20 | EQ 502 | TU 484 | EX 521
SO Current Score: 7•21 | EQ [F8 670] [F9 622] [EQ5 706] [VS3 639] | TU [F8 676] [F9 673] [TU4 652] [VS3 620] [VS4 598] | EX [F8 707] [F9 711] [EX2 680] [VS3 656]
Goal Score: 670 [X] TU [X] EX




Message 4 of 7
Tnetsirk200
Established Member

Re: At what point do I cancel my CAP1 secured CC? NEW to all of this help!

Thanks I appreciate it! I thought it was too soon, but wondered when a good time was. That all makes sense and from now on I'll try and break it up to make it read easier.

 

I will look up that AZEO and I get the gist of it, besides the mattress firm, which I will pay off soon, I'll keep one reporting below 10%. I had the highest fico when I did that, it reported like 4% and all other ones were $0.

 

I do not need the money from the secured card per say, it been tied up this long, and I'm doing alright so I will just let it be until hopefully they do graduate it. Thanks for everyone's help and sorry I didn't type that better. 

Message 5 of 7
Tnetsirk200
Established Member

Re: At what point do I cancel my CAP1 secured CC? NEW to all of this help!

Thanks so much, I appreciate it. I will look that up and just let everything age. How hard is it to lock and unlock your profiles? I pay for the experian where you see all 3 fico scores every 90 days. I have logged into TU once. I will do some more research on it. Do you know how long it takes to unfreeze it? Do I lock 2 TU &EQ AND leave EX alone? 

The cap1 secured is only 8 months old. I'll just wait I don't need the money right now. I appreciate your reply. 

Message 6 of 7
GApeachy
Super Contributor

Re: At what point do I cancel my CAP1 secured CC? NEW to all of this help!


@Tnetsirk200 wrote:

sorry I didn't type that better. 


Your typing is fine.  You had several really good questions that I didn't touch on until after I hit submit.  Btw, no, you're not over obsessing...it's fun and only you can tweak your reports so why not tweak away, right?!? lol MyFico it Smiley Tongue

Have fun and good luck on that Cap1 card graduating.....at least we now know there's some new hope in it for you and others. (fingers x'd)

 

eta: freezing or locking is up to you.  I lock mine via membership with all 3cb's.  You can probably freeze EQ through Myequifax should that be what you want to do.  I suppose you could just call to freeze all cr's and call to thaw.

"My Take Home Pay Don't Take Me Home"
Message 7 of 7
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