To close or not close?

[Anonymous]

So I have this list of CC’s and I want to get rid of Capital One altogether because it seems I’m in their “bucket” and they aren’t budging on CLI’s.

Sept 2017 Capital One QS1 - 1,000 CL
Feb 2018 Capital One QS - 300 CL
Mar 2018 Fingerhut Advantange - 200 CL
Jun 2018 WSECU Platinum CC - 2,500 CL

I’m coming up in that AF with my oldest card and happens to be Cap1. Should I bite the bullet and keep it and the AF? Tried PC it to something else but they I can’t at the moment.

What to do?

Thanks in advanced!

[K-in-Boston]

Normally it is ill-advised to close your oldest card.  In your case, your oldest card is only a matter of months older.  CapOne cards like most cards, generally stay on your reports for 10 years after closing them and calculate into your AAoA.  At that point, a few months will not matter one bit.  Do you have the option in your CapOne online account to combine your old account's limit into your newer CapOne card?

[HeavenOhio]

I'd combine the QS1 into the QS to create a $1,300 no-fee card with rewards. Combining may not help you with CLIs, but you would have gotten rid of the immediate issues with the cards.

The next card to go should be Fingerhut, but there's no rush. FICO likes it when you have at least three open cards. I'd consider closing it the next time you get a new card.

[Anonymous]

Well the customer service rep at Capital One said I could possibly combine them but nothing was guaranteed. And I wouldn’t be eligible until August 2018 at the earliest.

Plan is to get rid of fingerhut in about a year (when inquiries and accounts have aged) or whenever my baddies come off, whichever comes first. Working on those using the saturation technique.

[pipeguy]

My wife and I have both closed all of our Cap-1 accounts as pretty much worthless and they were NOT AF cards. Granted we have lots of cards and available credit, it's just that Cap-1 no longer fits our needs including their worthless "support". Of course, you have to do what is best for you including trimming cards that no longer fit the need. 

[HeavenOhio]

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@Anonymous wrote:
Well the customer service rep at Capital One said I could possibly combine them but nothing was guaranteed. And I wouldn’t be eligible until August 2018 at the earliest.

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According to the rep, both cards would need to be at least six months old. However, information on Capital One's website says that only the card to be closed needs to have reached the age of six months. Another thing to take note of is that at the time of combination, the donor card has to have a balance of zero.

I'd zero out the balance on the QS1 and start checking online for eligibility. To do that, hit "More Account Services" in the navigation bar near the top of one of your card pages. Then hit "Request an Account Combination," which is located under the heading titled "Control Your Card."

Here's all the info that Capital One provides.

There are several factors that determine eligibility. The most common ones are listed below. These factors may not all apply to you. Please note that this is not a complete list and other factors are also considered.

• At least one of your cards had missed or late payments in the last 6 months; has a balance over its credit limit; or was charged off in the last 12 months meaning, due to a series of missed payments, the account was closed.
• The card you intend to close as a part of the combination has been open for less than 6 months.
• All of your cards have a balance greater than $0 (at least one card must have a $0 balance and no pending transactions).
• Secured cards, co-brand cards (e.g., GM, Union Plus) and private label retail cards (e.g., Kohl’s, Neiman Marcus) cannot be combined at this time.
• Personal cards cannot be combined to create a single credit line greater than $50,000 and small business cards cannot be combined to create a single credit line greater than $100,000.

[Anonymous]

While I am considering that very much, and I appreciate you clarifying everything for me, I’m thinking they will still have me in that “bucket” regardless. The QS was PC’d from a Platinum about a month ago. So I’m almost certain that even if I did combine them, I’d still have a label on me.

Or maybe not?

[HeavenOhio]

@Anonymous, I think you're likely right when you say that there's an excellent chance that your card will be bucketed. But that's something you can deal with down the road. In the short term, you'll have lost the fee. And with the higher limit, your profile is going to look better than it does now.

My suggestion would be to build slowly and methodically, then close the card when the time is right. That time would be when you have at least three cards that are better than this one. That's going to happen soon enough.

One thing you should think about is whether Chase interests you. They have their 5/24 rule, which means likely denials if one has opened five or more cards within the past 24 months. They like to see a bit of file thickness (which you have). They also like your oldest card to be a year old (you're almost there; closed shouldn't matter). And they like a period of gardening. If you leave things alone except for this account combination, you should be in a good position for one of the Freedom cards come November or December.

If Chase doesn't interest you and 5/24 doesn't concern you, you can build a little more quickly. But keep in mind that letting cards age with a good payment history is a good recipe for approvals no matter which bank you choose to deal with.

[tcbofade]

...and there is no reason to close fingerhut... pay it to zero, but leave it open...

Mine sat there for seven years before they closed it.