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Hey everyone, recently joined myfico in order to track my progress. I opened a Capital One Secured card nearly two years ago for $350 and got a CLI to $651 a few months later. I have got new credit since then Apple Card with CL of $4000, Paypal Mastercard Cashback $2000 after 2 months received CLI to $3250, and a line of credit through Paypal/Synchrony for $1000 (virtual only). I was trying to see if Capital One would allow me to upgrade but they're not and was wondering if there's any con to me closing the account. I've heard that it stays on my CR for 10 years but don't understand what that means, if anyone could please elaborate that would be a huge help. Just need some input if I have the green light to close it, since at this point it's pretty useless.
@Anonymous wrote:Hey everyone, recently joined myfico in order to track my progress. I opened a Capital One Secured card nearly two years ago for $350 and got a CLI to $651 a few months later. I have got new credit since then Apple Card with CL of $4000, Paypal Mastercard Cashback $2000 after 2 months received CLI to $3250, and a line of credit through Paypal/Synchrony for $1000 (virtual only). I was trying to see if Capital One would allow me to upgrade but they're not and was wondering if there's any con to me closing the account. I've heard that it stays on my CR for 10 years but don't understand what that means, if anyone could please elaborate that would be a huge help. Just need some input if I have the green light to close it, since at this point it's pretty useless.
Age of oldest account is an input into your credit score. But the account and its impact on your age of oldest account do not fall off your credit history when you close the account.
Usually positive information will stay ten years.
The CapOne account does not have big impact on your utilization.
For other people it might but not in your case.
Make a final request to unsecure card then close it.
They may not upgrade that card, but they may approve you for a different card if you apply. That's a personal choice though. As for canceling the card and the 10 years, if it's a positive account, it will remain on your credit for 10 years and you'll still enjoy the positive effects. Of course, the credit limit will no longer be available, so it may affect your utilization depending on whether you carry balances. Also, closing it means it will not affect the age of your credit because it remains on your credit for 10 years. If you feel you should close it since it appears the card is bucketed, then close it. If you're still interested in Cap One then perhaps do some research and decide whether to app for a better quality cap one card.
Thanks for everyone for your input, it's been a great help. I decided to take the chance and applied for another Capital One account, got accepted for the Quicksilver, with a $1k CL. I don't know if it's possible but do you guys think that i’m able to call up and request that they transfer the CL of my secured to my Quicksilver CL?
If there is no AF on your secured card why not leave it the way it is and let age and possibly grow slowly ?
The way I see it, the average wouldn't change much? Since it's now 4 accounts rather than 5. Total account age between all of 4 existing one is 50 months, which evens out to about 12.5 months Average age of Account. With 5 it would be 10, so if I close one It would go back to 12.5 months. Am i calculating that wrong or mistaken in that logic? i'm relatively new to credit so please correct me if i’m wrong
@Anonymous wrote:The way I see it, the average wouldn't change much? Since it's now 4 accounts rather than 5. Total account age between all of 4 existing one is 50 months, which evens out to about 12.5 months Average age of Account. With 5 it would be 10, so if I close one It would go back to 12.5 months. Am i calculating that wrong or mistaken in that logic? i'm relatively new to credit so please correct me if i’m wrong
If you plan opening up new cards, you need to take that into consideration. Personally, with only 5 accounts, I would like a buffer for my AoAA at the cost of having a card I rarely use and putting a charge on it every few months. It really depends how much you value the buffer vs the value your deposit back. Ultimately, that's a personal choice.
So do you feel that having the card as a buffer would serve better for me if I plan to open new credit cards?
@Anonymous wrote:So do you feel that having the card as a buffer would serve better for me if I plan to open new credit cards?
Yes, exactly.
As others have said I would keep it just for your AAOA. I have a old Bloomingdales credit card that I put spend on every so often. I also just like the stuff from Macy's/Bloomingdales. But I keep this card reallt jsut for the AAOA. So if you are going to open another card I would keep the Capital One Secured.