Cap1 Closed all my accounts - question about scoring

[Jon85]

Hi all! Capital One closed both my Venture Card and Quick Silver card with balances of $28,000 and $14,000, respectively. 

My question is - will this negatively effect my credit acore? The balances are now zero. 

some context: some things I have been on a waiting list for since 2022 finally came through, two watches and I also booked a vacation. 

I charged my two watches on my Quicksilver which came to $28,000 and my vacation was $13,800 which I charged to Venture for the travel points. My point in doing this was to get the points and the cash back for each card. 

QS I had for 10 years, Venture for 4 years. I always paid in full on each. After I charged everything within a week, I saw on my app my Cap1 cards were restricted. Two days later I got document saying "we closed your account because this wasn't used for personal, household or family usage" **bleep**? I literally bought myself two watches for myself and a booked a vacation through expedia. And I consistently used both cards all the time for shopping, groceries, uber, everything. I don't own a business or anything so they can't say it was business expenses. 

ANYWAY - same day they closed the accounts, I paid off both accounts in full. 

I don't care about them closing it, I can just use my Amex and other cards. My concern is because they closed it is it going to lower my credit score since they closed it with balances so now when I paid in full and they update, is that going to even matter? 

nothing else changed in my financial life except those big purchases - credit report stayed the same, income same, etc. only thing that was added was a new auto loan two months ago which happens every two years because I lease. 

any insight please in regard to if I should be concerned about CS dropping? All my other cards are always paid in full, so zero debt except for like $120 that I kept on my amex for statement closure so it looks like I have some useage. Thanks in advance as always!!! 

[Rebuild2019]

Sorry this happened to you @Jon85 

[Jon85]

Aww th

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@Rebuild2019 wrote:

Sorry this happened to you @Jon85 

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aww thank you, it's okay. It didn't really hurt me that much as much as it annoyed me because I was so loyal to them. As long as they don't mess with my score, I'm fine lol 

[Rebuild2019]

Just sounds really bad for someone that pays in full. Hope it works out with your score. 

[Blender]

My guess is it just depends when they report it. If they report it closed with balance, then yeah, score will dip and recover by the next report of it having been paid. If they report it after the payment clears then its paid and all you lose is the age of those accounts.

[JoeRockhead]

You'll probably see a score drop being they reported the high balances which would affect your individual card utilization. But, there's nothing you can do about that except wait for them to update with zero balances. The other negative will be the loss of CLs as it pertains to your overall limits. The good news is the positive account history will stay on your reports for 10 years.

Being you don't carry balances, any negative effects these losses cause to your scores should be recovered no more than a few months down the road. 

[Rogue46]

Could be because they saw the 2 watch purchases and got spooked thinking you are on a breakout? That's the only thing I can think of why they shut you down. You will probably see a score dip but that should recover and as mentioned above the tradelines will stay on your report for up to 10 years

[Avenger48c]

Sorry this happened to you - it seems like the large purchases just spooked them. You'd think a card issuer that's willing to give a high limit would actually let you use it, but that's unfortunately not always the reality, especially if the spending is significantly out of your ordinary pattern.

Like others have said, depending on whether Cap 1 reported the closed card with a balance or not, you'll either see a sharp dip (100% utilization on those cards) then a rebound when they're paid or you'll see a slight dip (closed/paid in full).

What are your other cards and what limits do you have? Looking back at your post history, it looks like the Amex is a Gold, which is a no preset limit card and doesn't really count towards your overall limits or utilization, so if the others have small limits you might find yourself with some issues around your total limits relative to monthly spend going forwards. If that's the case, you'll want to try to grow your credit limits as soon as your score rebounds, either through limit increases or through new cards. 

[Anonymous]

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@Rogue46 wrote:

Could be because they saw the 2 watch purchases and got spooked thinking you are on a breakout? That's the only thing I can think of why they shut you down. You will probably see a score dip but that should recover and as mentioned above the tradelines will stay on your report for up to 10 years

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No, I would guess that the assumption (perhaps based on the merchant details) was that these were high priced jewelry type items intended for resale, so not household use.   The closure of the venture would have just been caught up in it.   But a lot depends on previous usage, were both these charges way out of normal range?

[CreditCuriosity]

Strange indeed.  Cap1 should of been salivating thinking you might not be a PIF type of person and getting that interest.  Cap1 usually isn't known to do this type of AA unless as in your case expenses on personal cards are being used for business or person expenses on business cards are being used for personal expenses.  Have seen this a few times.  Not sure what caused them to get spooked other than likely out of the ordinary charge amount.   I am guessing the two watches were what did it as well was that treated as one charged for 28k or two seperate 14k charges?  Sounds like you just got a bit of bad luck, but other lenders such as AMEX likely won't blink an eye at this type of transaction as your income and what you buy appears to support such transactions.  Where Amex can care less if you charge business to personal and personal to business cards as long as they get paid.  Interesting.