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Should I close my secured card?

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Anonymous
Not applicable

Should I close my secured card?

I've been rebuilding my credit for the last year and a half. (Tu 626/ ex 627/ eq 621) My first foray into credit cards since my wasted college youth and abject poverty began with two secured cards. One is capital one, the other was first progress.

 

Due to the HD data breach, I closed the first progress when they refused to send a card with a new number. THey would only change the security code and expiration date. (Compromised card was still able to be used after changing the security code and expiration date.) I preferred the hit to my report over paying for potentially fraudulent charges. Both secured cards were opened in dec of 2013.

 

I was (and am) diligent about paying in full each month, no interest accrued and was treated after 6 months on the cap one secured with a 300 credit limit increase from 700 secured to 1000 CL. 9 months after opening, I was asked to apply for a quicksilver visa with cash back, no interest for a year and was immediately approved for 1000. (Oh if only I had known about the recon line back then.)

 

Since Sept 2014, I've been approved for a Children's Place store card (300 CL), amazon store card (800 CL), Chase Freedom (500 CL) and now a Barclay's Reward (1000 CL, thank you recon line). Right now utilization is at 38%, but Barclays was just approved this week, and not showing in total credit limits. I'm paying off the amazon (last reported 648, will report again at 148) and the entire balance of the secured card (887) and partial of the cap one quicksilver (reporting 958, paying off 400). I was also able to purchase my first home in July of 2014.

 

My cap one secured card is my oldest card at a year. I had a car loan and sallie Mae that was reporting as oldest, but when I purchased a new car and naivent switched, it bumped my 5 year history to 1.5 years. Ouch. I had dreams of closing the secured and getting another capital one rewards card, like quicksilver one. BUt everything else is under a year, will closing this secured line knock me even further down? Any suggestions/help is welcome!

Message 1 of 9
8 REPLIES 8
Anonymous
Not applicable

Re: Should I close my secured card?

If it was me, I'd go ahead and close it.  You don't need it any longer and closing it won't affect your AAoA as closed cards stay on your reports for 10 years.  Here's a thread that explains well the closing of cards:

 

 http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/m-p/347190?jump=true

Message 2 of 9
TRC_WA
Senior Contributor

Re: Should I close my secured card?

Closed accounts in good standing stay on your CR for 10 years... so know, it won't drop your AAoA immediately.

 

If they won't unsecure it I would most definitely close it.

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 3 of 9
Anonymous
Not applicable

Re: Should I close my secured card?

I was told by a phone rep that they don't unsecure secured cards. Of course they also said they don't give CLI on secured cards, but obviously they do. Is there a better number than customer service to call to ask about converting it?

Message 4 of 9
Anonymous
Not applicable

Re: Should I close my secured card?


@Anonymous wrote:

If it was me, I'd go ahead and close it.  You don't need it any longer and closing it won't affect your AAoA as closed cards stay on your reports for 10 years.  Here's a thread that explains well the closing of cards:

 

 http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/m-p/347190?jump=true


Does that info fall true for loans, or just credit cards? Sorry if this is all redundant, I'm very new to the forum and credit in general. I'm already kicking myself for the new car since it but me in the rear in terms of credit age. 

Message 5 of 9
Anonymous
Not applicable

Re: Should I close my secured card?


@Anonymous wrote:

I was told by a phone rep that they don't unsecure secured cards. Of course they also said they don't give CLI on secured cards, but obviously they do. Is there a better number than customer service to call to ask about converting it?


Your best route with Capitol One is to email the EO and before you ask for the email, Google it.

Message 6 of 9
Anonymous
Not applicable

Re: Should I close my secured card?


@Anonymous wrote:

@Anonymous wrote:

If it was me, I'd go ahead and close it.  You don't need it any longer and closing it won't affect your AAoA as closed cards stay on your reports for 10 years.  Here's a thread that explains well the closing of cards:

 

 http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/m-p/347190?jump=true


Does that info fall true for loans, or just credit cards? Sorry if this is all redundant, I'm very new to the forum and credit in general. I'm already kicking myself for the new car since it but me in the rear in terms of credit age. 


Yeah, loans stay on your reports typically for 10 years as well.  However, this is just a typical occurrence.  Creditors are free to pull the file at any time.  They don't even have to report if the account is still open, whether it's a card or loan.

Message 7 of 9
Anonymous
Not applicable

Re: Should I close my secured card?


@Anonymous wrote:

@Anonymous wrote:

@Anonymous wrote:

If it was me, I'd go ahead and close it.  You don't need it any longer and closing it won't affect your AAoA as closed cards stay on your reports for 10 years.  Here's a thread that explains well the closing of cards:

 

 http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/m-p/347190?jump=true


Does that info fall true for loans, or just credit cards? Sorry if this is all redundant, I'm very new to the forum and credit in general. I'm already kicking myself for the new car since it but me in the rear in terms of credit age. 


Yeah, loans stay on your reports typically for 10 years as well.  However, this is just a typical occurrence.  Creditors are free to pull the file at any time.  They don't even have to report if the account is still open, whether it's a card or loan.


+1

Message 8 of 9
Anonymous
Not applicable

Re: Should I close my secured card?


@Anonymous wrote:

@Anonymous wrote:

I was told by a phone rep that they don't unsecure secured cards. Of course they also said they don't give CLI on secured cards, but obviously they do. Is there a better number than customer service to call to ask about converting it?


Your best route with Capitol One is to email the EO and before you ask for the email, Google it.


I have it, thank you! I sent off a reasonable email, so now it is sit and wait time. If they say no, then I'll close it and wait for the 6 month mark on the Quicksilver Visa and request a CLI on that one. 

Message 9 of 9
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