Credit one

[Newbie2018]

I would like to know if I should close my credit one account.

The account was closed and over the credit limit from September to January.
I paid my minimum balance and in the course of a months time I've finally paid them down to $0 yesterday.

I looked at my statement and some other documents online and they have upped my interest rates to 25 point something. I'm also reaching my one year mark next month and will be getting charged another annual fee this time instead of 75 it will be $99 billed at $8.25 per month.

I goodwilled them beginning of February to remove the lates and reopen my accounts. It took them forever to do so but as of now they have opened back up for my Equifax and Experian and Transunion. I want to close this card because I'm truly sick of Credit one and there Interest. They are slow to report. How is it my balance on one report $45 and the other reports $50 because they decided to charge Interest. I had paid the balance down to $45 before the cut off date and they added Interest to it a few days later. How is that even possible. They waited all late to report even though I literally should have only received my statement for $45.

Anyways. I don't want to mess up my score but I need some advice as to what to do. If I stick it in a sock drawer I'll still have to worry about the $8.25 a month they plan on using for the annual fee and potentially drawing interest. I don't like their reporting time frame either. Also if I was to close my account so soon after good willing for them to say oh we're adding the lates back to your account. Also worried that because they take so long to report. When I close the account I may not see that reflect on my report for a while because they are so slow and they may hit me with the annual fee anyway before they finally report it closed.

[Anonymous]

Yes, when you have another credit card account open, you should get rid of Credit One as soon as possible.

[Newbie2018]

I have several cards reporting.
AU on Cap one
BofA cash rewards
Credit union secured
Discover secured not reporting yet
3 store cards that haven't reported yet.

What are the odds of them adding the good willed late remarks back to my report?

[Sixburgh79]

Not to derail as my question is basically in the same ballpark but yea I'm curious about if credit is just credit, or if having something like credit one taints things a bit? I have a credit one card as it was really the only way back into the door at the time, I've gotten a lot of decent cards since but credit one helps with age of credit currently. Is it still wise to just keep the account, unused of course, just for age of credit?

[Anonymous]

Luckily, even after accounts closing, they continue to age on the FICO model. So if I opened an account exactly one year ago, but closed it six months ago, today it would show as one year old, even though it's closed. So we can close old accounts and not have to worry about paying the annual fees just to keep them reporting.

One thing to note, is the VantageScore model does not follow this rule. So if you follow your scores on credit karma, you will indeed see the age drop. I recently combined two cards, which basically reported on credit karma as a credit line increase to one card and the second card being closed. My AAoA did drop, but my actual score (on CK) went up by a point. That was the only effect it had. The "worst" impact is just that I can't see what AAoA banks/companies see, unless I order my FICO scores. 

[simplynoir]

IMO having a lender like Credit One is not one to have because of the associated fees and predatory APRs they give to customers. Depending on how soon you were able to receive decent cards since then closing your Credit One account will do minimal damage to your credit since closed accounts can still be reported up to 10 years. In the end it's your choice but I would recommend closing cards like that to avoid any pitfalls like unanticipated fees from popping up.

[Snipper117]

That’s great that you had success with the goodwills to them in removing late payments. Did you receive a letter in the mail stating this also?

I closed both of my credit one cards yesterday. They actually were one of the only ones who gave me credit when my scores were poor. When I called to close they actually offered me 7 months no fees and a cli. I declined the offer.

Perhaps they may offer you something similar and if you can keep the balance at zero it may be worth it especially if this card is significantly helping your overall credit utilization.

[iv]

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@Anonymouswrote:

One thing to note, is the VantageScore model does not follow this rule. So if you follow your scores on credit karma, you will indeed see the age drop. I recently combined two cards, which basically reported on credit karma as a credit line increase to one card and the second card being closed. My AAoA did drop, but my actual score (on CK) went up by a point. That was the only effect it had. The "worst" impact is just that I can't see what AAoA banks/companies see, unless I order my FICO scores. 

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No, no, no.  VantageScore follows the same rule on closed/open account age as FICO - both count for AAoA.

It's just that CK's broken "helpful" info section only calculates AAoOA instead.  But that is not an accurate representation of VS scoring rules.

CK has been displaying that same broken AAoA calc for at least three different sets of scoring models (TU NAS, TU VS2, and TU/EQ VS3).  It's been wrong for at least two of them.

And you don't need to pay for FICO scores to see your real AAoA - you could use Experian's free score+report service that displays "real" AAoA, or just calcuate it yourself... it's not exactly complex.

[joltdude]

Every time a Credit One account is closed, a credit angel gets their wings -J

As long as its paid off.. and theres no trailing interest... CLOSE IT.. it still will factor into your score positively for a few years. id say 7 or so but Credit None has been known to stop reporting early....(not the full 10 years)  Youve moved on.....

-J

[Newbie2018]

I've gotten mixed answers. Some say remove it some say SD it. Lol.