Credit One

[Anonymous]

HI, I'm new here! Hello everyone! 

A lil background:

I'm in the market to apply for a mortgage next year in July coming off a chapter 7 bkrtcy over 3 years ago. I have a Credit One card that I have had over a year to establish my credit. But I am sooo over them! I got married last year and they wanted to charge me a fee to change my name with them??! So I want to get rid of them! I have a Capital One Credit card now with $1800 limit and I am good with that. I owe Credit one $200 dollars. So my question is...do I pay them to a 0 balance then cancel immediately or should I let the 0 balance show for a few months or cancel the card then pay it off?

Any help is greatly appreciated! Thanks!

[tcbofade]

It honestly doesn't make much difference...pay it off, then close it, or close it then pay it off....doesn't matter what order you do it in, but DO close it.

[Anonymous]

I would pay the card to a 0 balance, maybe carry the 0 balance for a month or two to make sure it reports that way and then close it. That way you know they reported it the right way and you dont owe any interest. Credit one adds the interest when your statement cuts so even though you paid your balance off you still might owe interest for that month. Also when you do close it make sure you get a letter from Credit One stating the account was closed and with a 0 balance. I have heard of Credit one trying to be sneaky and reporting a small balance when someone closed the card when it was actually at a 0 balance.

[Anonymous]

I also have a credit one that I got in August and plan on closing it in July (before my next AF is due) so I have also been looking into the best way to close it....

[Anonymous]

If you're past the year mark and being charged an annual fee monthly, you need to call and and get a 14 day pay off amount and mail them the payment (certified mail).

They charge interest daily and the monthly fee hits on statement day... and you can't "over pay" on your account to make sure there's no interest.

If less than a year... pay to zero, let it sit for two months to make sure it stays that way, then cancel.

[Anonymous]

Thanks for your input! I will pay it off...give it a month and close it the end of this month. I can't wait! 

[Anonymous]

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@Anonymous wrote:

If you're past the year mark and being charged an annual fee monthly, you need to call and and get a 14 day pay off amount and mail them the payment (certified mail).

They charge interest daily and the monthly fee hits on statement day... and you can't "over pay" on your account to make sure there's no interest.

If less than a year... pay to zero, let it sit for two months to make sure it stays that way, then cancel.

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Ok this is the route I will take...to make sure I cover myself! Thanks!

[Anonymous]

Ok, quick question. My due date is 12/14.....If I pay balance and close today, I should not be charged interest right? Unless they try to be sneaky....But I will request they send me a letter to show I closed the account today.

[bdhu2001]

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@Anonymous wrote:

HI, I'm new here! Hello everyone! 

A lil background:

I'm in the market to apply for a mortgage next year in July coming off a chapter 7 bkrtcy over 3 years ago. I have a Credit One card that I have had over a year to establish my credit. But I am sooo over them! I got married last year and they wanted to charge me a fee to change my name with them??! So I want to get rid of them! I have a Capital One Credit card now with $1800 limit and I am good with that. I owe Credit one $200 dollars. So my question is...do I pay them to a 0 balance then cancel immediately or should I let the 0 balance show for a few months or cancel the card then pay it off?

Any help is greatly appreciated! Thanks!

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If you're wanting to build up to a mortgage, one credit card isn't enough. If there is no fee associated with the card, keep it. I don't recommend paying interest.  So if you can pay off the $200, pay them off. Use your credit one card for an auto pay of a small bill like water. Pay the credit one automatically so that you don't pay interest.

If they charge to change your name, don't change the name on the card. Let that be the card you use over the Internet and to auto pay bills.

Rebuilding credit is a journey, not a sprint. Take the time to make the right decisions for the outcome you'd like to obtain. You didn't mention the credit limit on your Credit One card.  Remember that you need to keep your  utilization below 25% overall and below 25% on each individual card.  If you can keep your utilization below 9%, it's even better.

[Anonymous]

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@Anonymous wrote:

Ok, quick question. My due date is 12/14.....If I pay balance and close today, I should not be charged interest right? Unless they try to be sneaky....But I will request they send me a letter to show I closed the account today.

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Incorrect. Credit One charges interest from date of purchase... it just doesn't post until your statement. If you pay the balance today, your next statement will show the interest compounded through today; still due and payable.