Should I close my Capital One?

[Anonymous]

Just graduating college and have had this card for years. Interest is 28%. I have an American Express at 18% and a Discover offer at 15%. I called Capital One and told them both Amex and Discover give me 5x higher limits and over 10% lower APR. customer service basically told me I was a nobody and to eff off and that they will never lower my APR. How much will it ding my credit to close my account with this trash company? Never missed a single payment in 3 years and have always been employed. What a joke capital one is. Haven't even used the card because they offer no rewards and terrible rates. Mainly concerned about the damage done closing an account as I've never done so.

[Anonymous]

I'd also like to give kudos to American Express. Polar opposite customer service experience with them. I explained the situation about the lower interest offer from discover and they were happy to lower my APR to match that rate. Definitely will be spending my money with them from now on.

[tortoise_credit]

I don't have a card with cap1, but from what I've read everything is decided by computers, so no amount of asking a rep will change anything.

That being said, if you want to close the card, you can as long as you still keep your utilization low across other cards. But you could also keep it open since it's your oldest card as long as you don't mind putting an occasional purchase on it and monitoring for fraud. In either case, it continues to count towards your FICO score for up to 10 years.

[dragontears]

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@Anonymous wrote:

Just graduating college and have had this card for years. Interest is 28%. I have an American Express at 18% and a Discover at 15%. I called Capital One and told them both Amex and Discover give me 5x higher limits and over 10% lower APR. customer service basically told me I was a nobody and to eff off and that they will never lower my APR. How much will it ding my credit to close my account with this trash company? Never missed a single payment in 3 years and have always been employed. What a joke capital one is. Haven't even used the card because they offer no rewards and terrible rates. Mainly concerned about the damage done closing an account as I've never done so.

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Well....

1. A lender is not "trash" because they won't lower your interest rate. Highly sought after, premium travel cards can operate the same when it comes to APR reductions.

2. The interest you would be charged if you pay the complete statement balance before the due date is $0 since Cap1 has a grace period. 

3. You are right, Capital One doesn't care about you. But neither does Amex or Discover or any lender, we are all just a number to them and unless you are spend 6 figures on their card you will always be just a number. 

4. Closing a card can affect your scores in several ways and you did not provide information on what balances you have on your cards.

5. You have a younger profile but come off entitled because of 3 years of payment history. You should temper your expectations about credit as you are a higher risk than someone who has 20 years of payment history but the same score and lenders know this.

[Anonymous]

I have newer "premium" cards with higher interest rates than some of my older accounts. APR is irrelevant unless you're carrying a balance, which is better done on a zero % intro bonus anyway...

I tend to get a card based on cash back or benefits. The interest rate isn't a factor to me. In the event I need to carry a balance, I stick it on a new card with 0% for a year, or a strategic balance transfer.

Closing the card will reduce your overall available limit. If you have decent limits on other cards then that won't matter. If it's a big part of your total limits then it may.  The account stays on your credit file for 10 years after closing, so it'll still help your age of accounts for FICO purposes (though Vantage scores immediately remove it).

As others said, don't take it personally. We're just numbers to them. They don't feel guilty about charging us interest and fees, so we don't feel guilty getting sign up bonuses and cash back. Just keep good habits (pay on time, keep utilization low, don't go crazy with new accounts) and enjoy the game.

[805orbust]

You've gotten great feedback on this post thus far. Cap1 is essentially 2 different credit card companies. 1) a rebuilder company (i.e. low limit or secured Platinum for newbies), and 2) a rewards card company. The starter cards go nowhere... ever. I've read here about product changes or upgrades periodically but not "solid". You said your other limits outdo your Cap1 by many multiples, then if your utilization is low, no issue with closing. The account history will remain for up to 10 years.

My personal feelings?  Close Cap1, close it, definitely close it... close  it!

[moto4man]

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@Anonymous wrote:

Just graduating college and have had this card for years. Interest is 28%. I have an American Express at 18% and a Discover at 15%. I called Capital One and told them both Amex and Discover give me 5x higher limits and over 10% lower APR. customer service basically told me I was a nobody and to eff off and that they will never lower my APR. How much will it ding my credit to close my account with this trash company? Never missed a single payment in 3 years and have always been employed. What a joke capital one is. Haven't even used the card because they offer no rewards and terrible rates. Mainly concerned about the damage done closing an account as I've never done so.

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I tend to disagree.  Cap1 has been kind to many of us that have struggled early on in our credit lifetime.  And have opened the door to other more lucrative offers.  They are by far one of the best at giving someone a second chance.  While still being respectable about doing it, and they have a reliable system that ensures your payments are reported in a respectable timeframe.

As far as bucketed cards... Yes, I feel your frustration.  But those cards are never going to get a lower APR, if anything you might get small CLI's that will do little more than piss you off.  I don't see the point in closing them if there is zero AF attached to them.  Just sock drawer them...

[Anonymous]

As has been posted numerous times in the MyFico Forum ... there are different lenders for different personal profiles. Some lenders focus more on the high end spenders with long credit histories and then there are lenders for the new person to credit and/or need to do some rebuilding on their credit.

Mercury, Capital One, Credit One are known for helping those who need a help with credit. In reading many posts, they tend to be more cautious and conservative. Sure get that, want to see the person perform and use their products then add a little credit at a time. Good business management. Over the years Capital One has focused on those in need and later on added more every day life type of cards and of late some higher end cards.

Myself due to bank consolidations etc I ended up with eight Capital One personal and business cards. Too many cards for me so I took the hits in the CBs for closing cards with old opening dates and moved on (will tell you the hit in the credit bureaus for closing a card from 2001 was large in my case and it took quite awhile to claw my way back on the average age of accounts and oldest accounts).

After time and reasonable credit usage the CB numbers increase and other lender products open up and rather than wait for the beginning type lenders to shower with higher CLs we seek out lenders that most suit our needs or wants of the time. Truly a personal choice.

Asking questions and shopping lenders is a good way to find cards that best fit us. Closing accounts on a short credit life is not a big hit but closing one that is ten years old will likely make a difference. Speaking with experience here. Good luck on what ever works for you.

[SouthJamaica]

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@Anonymous wrote:

Just graduating college and have had this card for years. Interest is 28%. I have an American Express at 18% and a Discover at 15%. I called Capital One and told them both Amex and Discover give me 5x higher limits and over 10% lower APR. customer service basically told me I was a nobody and to eff off and that they will never lower my APR. How much will it ding my credit to close my account with this trash company? Never missed a single payment in 3 years and have always been employed. What a joke capital one is. Haven't even used the card because they offer no rewards and terrible rates. Mainly concerned about the damage done closing an account as I've never done so.

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1. I happen to agree with you that Capital One is a trash company.

2. Closing the account won't affect your aging factors at all, because once it's closed it usually sits in your report for many years, typically 10 years or so.

3. If your revolving utilization is low on your other cards, it won't hurt your utilization either.

4. The only thing you're losing is one dependable zero balance-reporting card, so that could cost you a point or two until it's replaced. But I wouldn't let that deter me from getting rid of a useless card.

[Anonymous]

Thanks for the advise guys, the capital one account was my first ever card. I've never carried a balance and have always payed off the month before the balance is due on all my cards. I may sound entitled but that was just because capital one customer service was rude and dismissive, I started the conversation very polite and it got rocky with her fast. I kindly asked if there was anything she could do to lower the APR as I've never missed a payment. When I brought up my American Express with much lower rates and much higher cap she got combative and told me I was going nowhere with cap one and that I was a high risk customer. American Express customer service was opposite, totally polite, worked with me to lower APR and had a follow up email. I'm not asking for the best of the best as I'm young, but 28% is highway robbery and loansharking. I'm not going to accept that when I get offers in the mail from Chase for the Saphire Preferred and other Amex cards every day for mid teens interest rates and cash rewards is all. It's not that I plan to lay the interest, it's just the premise of it. I do truly appreciate the feedback, and that is great news that closing it shouldn't be too detrimental. That was my biggest worry.