Capital One - To Close or Not to Close

[RootDet]

Hi All,

Looking for some opinions here. I opened a capital one account about 12 years ago. It was my first card, and I got chase around the same time (Still got that one).  Over the years I got the Annual Fee removed (was $59), and got the $300 credit limit up to $6500. Capital one happens to be my lowest credit card limit by a long shot (See sig).  I give it random usage, and even go as high as $1k in some months, pay it off pretty quickly and never revolve beyond a month or two at best. CapOne still complains that it isn't enough usuage for a CLI and it has now officially been over a year since i received one. Needless to say the card is bucketed and we know it doesn't go anyways.

I also have a walmart store card ($20k limit) came from the bank swap. Neither banks have ever offered to upgrade it to a MC branded version. FRankly, i never shop at walmart enough either to make that worth it. I use to at least buy Vudu movies from walmart.com with it, but that partnership is coming to an end too since Walmart sold Vudu.

AAOAis 8.1 years, last new card I opened was 4 months ago and 1.3 years ago for the next newest. I just paid off all my CC debt, so I sit at near 0% utilization. 

I have plenty of other cards with better limits, APRs, and rewards. I am now stuck wondering if it is worth it to keep these two cards in the portfolio or if I should let capital one go altogether. I would apply for another card (probably a GM card) but frankly, I dispise the triple pull. I rather put my time into something like BECU or First Tech and add another CU into the mix.  

Thoughts? suggestions? 

[gdale6]

I would cancel the 6500 limit card, closed accounts do not affect AAoA for up to 10 years as that is how long they can remain post the month of closing. The WM card may prove useful to you at some time so I would keep it around. I would also let one card always report a small balance 20 bucks is enough as all cards on the CRA at 0 is a Fico score decrease of some points, it can be over 20 if you are in the higher reaches of Fico.

[chuckwood]

I am sure its card and profile dependant but I have come to the conclusion capital one seems to like alot of spend on there cards for 2-3 months before they give increases. I have played the capital one game along time too and they can be a pain to get increases.

[Anonymous]

I am assuming you are about 30 or 31 years old?

You have some impressive credit lines, so I can see where the $6,500 limit on your Venture One sticks in your craw. But it seems like maybe you are focusing too much on that and forgetting how important and impressive it is to have your first credit card. 

I also have my first credit card open. And, like you, my first credit card was Capital One. My card is 22, and I am now 40 years old. Do you know how incredibly rare it is for an adult to still have their first credit card? Maybe most do not care, but I get off on it. I also do not use my Venture One much (why would we? 1.25 points per dollar is pitiful). But cards like this are great to keep around for its age. Make a few mercy purchases here and there and BAM! the card stays active and continues to age. 

There are two schools of thought here at MyFico. You have the folks that will say, "close it if you aren't using it-it will report for another 10 years anyway" and then you have the sockdrawer crowd "it is not hurting you to keep it open, just use it every 6 months and sockdrawer it." 

Normally, I am the former and advise people to close cards they no longer find useful; but in this case, I would encourage you to keep your oldest trade line. It might not seem like a big deal now, but in 10 years you could have an open, 22 year-old Capital One card or that 22 year-old Capital One trade line will be falling off your bureau. Mind you, your score won't be hurt as long as you continue what you are doing today, but call me crazy, having old trade lines to me is important. 

TL DR : close the Walmart card but keep the Venture One 

[Anonymous]

^^^ can't say I disagree here. My oldest open line is a 13 year old Home Depot card and you can bet I'm keeping it. Wish I still had my M&T Visa, Discover, and Orchard Bank MC  from my first two years in college. They would be 27, 26, and 26 years old now respectively. I'd kill to have that age base on my profile at this point.

[RootDet]

You hit it right on the nail and I am normally right there suggesting to keep it open. Just C(r)ap One seems to be a nowhere street. 

[MrZero]

As long as you're not paying fees you might as well just sock drawer it and only take it out every few months to keep open or pay some subscription service you use with it and have it auto pay every month.

[Gollum]

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@RootDet wrote:

Hi All,

Looking for some opinions here. I opened a capital one account about 12 years ago. It was my first card, and I got chase around the same time (Still got that one).  Over the years I got the Annual Fee removed (was $59), and got the $300 credit limit up to $6500. Capital one happens to be my lowest credit card limit by a long shot (See sig).  I give it random usage, and even go as high as $1k in some months, pay it off pretty quickly and never revolve beyond a month or two at best. CapOne still complains that it isn't enough usuage for a CLI and it has now officially been over a year since i received one. Needless to say the card is bucketed and we know it doesn't go anyways.

I also have a walmart store card ($20k limit) came from the bank swap. Neither banks have ever offered to upgrade it to a MC branded version. FRankly, i never shop at walmart enough either to make that worth it. I use to at least buy Vudu movies from walmart.com with it, but that partnership is coming to an end too since Walmart sold Vudu.

AAOAis 8.1 years, last new card I opened was 4 months ago and 1.3 years ago for the next newest. I just paid off all my CC debt, so I sit at near 0% utilization. 

I have plenty of other cards with better limits, APRs, and rewards. I am now stuck wondering if it is worth it to keep these two cards in the portfolio or if I should let capital one go altogether. I would apply for another card (probably a GM card) but frankly, I dispise the triple pull. I rather put my time into something like BECU or First Tech and add another CU into the mix.  

Thoughts? suggestions? 

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The term "bucketed" as used in this forum usually means a Capital One credit card that never gets a credit limit higher than $750: https://ficoforums.myfico.com/t5/General-Credit-Topics/Credit-Card-Asset-Backed-Securities-ABS-and-w...

You have excellent FICO scores, you have a different bank's credit card the same age as your Capital One credit card, you are already considering closing the Capital One credit card and the Walmart credit card, and you obviously do not need either of those credit cards, so I vote for closing both of them.

You probably don't need a BECU credit card either, but since you're already considering it, then I vote for applying for it.

Edit: The FICO scores (and presumably the credit cards) as shown in your signature are from February 2020, and a lot could have changed for you since then.

[Gollum]

@MrZero,

Instead of your signature stating that it is a work in progress (your signature is pretty complicated), I suggest just not using a signature until you are satisfied/happy with it.

[Rogue46]

Since you opened a Chase card around the same time it wouldn't hurt you to close the CapOne. If you want to keep it around for nostalgia that's something different. 

Personally I would cancel the CapOne and Walmart if they won't get any use.