Two unrelated, but possibly related questions: AMEX and Closing an Account

[KneelBeforeZod]

I was hoping all of you awesome folks could provide me some feedback.  I have two questions which could be related/unrelated:

1.  I recently app'ed and got appoved with AMEX and Discover.  I seem to really like using AMEX for some reason (must be a mental thing).  I like to pay before the statement cuts.   Is there any danger of submitting a payment once more than once before the statement cuts to keep zero balance?  Do they like this, not like this?   Since I got my card a week or so ago, I've already charged about $600 bucks and have paid it off already to retain a zero balance.

2.  I have a Crapitol One account that has a $1000 limit.   Before I got AMEX and Discover, I had to use it for moving expenses.  The statement cut during the frenzy of moving and I racked up a $700 balance that I'm paying in full.  Because of the high usage, I got dinged 12 points on my FICO score.  I know that it'll rebound once it's paid off and stuff.   I'm thinking of closing this account.  It's about a year old, and I can't get anywhere with them giving me a CLI.  I feel like if I use it, I'll perpetually lose points.

My AAOA for accounts is 7 years old.  It's going to change once AMEX and Discover start reporting obviously.  Should I tell Crapitol One to eff themselves and close the account, or should I sock-drawer it and never use it again?  They did PC me to their QuickSilver One card, but the limit makes it very undesirable to want to earn cash rewards.

AMEX gave me a $5,000 limit.  Discover gave me a $10000 limit.  I got the 7-10 day kiss of death message when I appiled for the one, then again for the other thinking I wasn't approved.   And magically, I got both.

Your feedback is greatly appreciated.   If I can provide any additonal details that help, please let me know!

You guys rock!

[mongstradamus]

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@KneelBeforeZod wrote:

I was hoping all of you awesome folks could provide me some feedback.  I have two questions which could be related/unrelated:

1.  I recently app'ed and got appoved with AMEX and Discover.  I seem to really like using AMEX for some reason (must be a mental thing).  I like to pay before the statement cuts.   Is there any danger of submitting a payment once more than once before the statement cuts to keep zero balance?  Do they like this, not like this?   Since I got my card a week or so ago, I've already charged about $600 bucks and have paid it off already to retain a zero balance.

2.  I have a Crapitol One account that has a $1000 limit.   Before I got AMEX and Discover, I had to use it for moving expenses.  The statement cut during the frenzy of moving and I racked up a $700 balance that I'm paying in full.  Because of the high usage, I got dinged 12 points on my FICO score.  I know that it'll rebound once it's paid off and stuff.   I'm thinking of closing this account.  It's about a year old, and I can't get anywhere with them giving me a CLI.  I feel like if I use it, I'll perpetually lose points.

My AAOA for accounts is 7 years old.  It's going to change once AMEX and Discover start reporting obviously.  Should I tell Crapitol One to eff themselves and close the account, or should I sock-drawer it and never use it again?  They did PC me to their QuickSilver One card, but the limit makes it very undesirable to want to earn cash rewards.

AMEX gave me a $5,000 limit.  Discover gave me a $10000 limit.  I got the 7-10 day kiss of death message when I appiled for the one, then again for the other thinking I wasn't approved.   And magically, I got both.

Your feedback is greatly appreciated.   If I can provide any additonal details that help, please let me know!

You guys rock!

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I have never had issues with either amex or discover over paying or paying early. If you are worried about statement cutting while you have something pending that may hit before you can pay it off, you have the option of using your checking account to bill pay whatever amount you want. For example if you have something pending for 75 dollars, and have balance of 100 dollar. You could do bill pay to pay for 175. If you went throught amex site you would only be allowed to pay 100 since it doesn't allow you pay over the balance. I hope that example makes sense. 

As far as your cap one goes , if you close it now it will stay on your credit report for ten years i think it is. I am in minority, but if it has no AF i wouldn't mind keeping it open. You can just sd it and not use it. Just use amexx and discover as your primary cards. Have you tried sp cli your cap one card?

[sexy_kitten7]

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@mongstradamus wrote:

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As far as your cap one goes , if you close it now it will stay on your credit report for ten years i think it is. I am in minority, but if it has no AF i wouldn't mind keeping it open. You can just sd it and not use it. Just use amexx and discover as your primary cards. Have you tried sp cli your cap one card?

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+1 This is the consensus for best practices!

If there is a fee, most people would advise closing it.

[lg8302ch]

Congrats on the Amex and Discover. As for Cap1 I would keep it if you have QS. You can actively play with the luv button..it is a SP and you get free EQ Fico score for it if denied... that is what I did every two months and one day after my 1 year anniversary...bam.. got my CL doubled from 5K to 10K...now no need to touch it anymore and I am fully satisfied with Cap1 

[Anonymous]

If it is the Quicksilver One, doesn't that have an AF, in which case close it given your other card?

IMO Rant:  "Crapital One" was, at most, funny once.

[KneelBeforeZod]

Thanks for your helpful feedback folks.  I got the card in the mail, and it's a Quicksilver One, so yeah..looks like I accomplish nothing by asking for a PC other than getting cash rewards.  I think after getting AMEX and Discover, it's made me jaded a bit thinking that they should bend over backwards for me to keep me as a customer.  But, I think I already made that decision defecting so I'm sure they have no reason to want to keep me in their camp at this point.

The card started off as a credit builder card - it did what it was meant to do.  I guess my needs and expectations with where I'm at now have outgrown the card and possibly what they would do for me.  It went from $300 to $500 to $1000.  It feels like a exercise in futility to buy a soda and let it report and pay off and have to pay to keep the card annually.  Then again, I should be grateful for Capital One playing a vital role in my credit journey - I almost feel bad in a way but will get over it once I hang up the phone with them.

Am I on the right plane of thinking at this point? 

[Anonymous]

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@KneelBeforeZod wrote:

Thanks for your helpful feedback folks.  I got the card in the mail, and it's a Quicksilver One, so yeah..looks like I accomplish nothing by asking for a PC other than getting cash rewards.  I think after getting AMEX and Discover, it's made me jaded a bit thinking that they should bend over backwards for me to keep me as a customer.  But, I think I already made that decision defecting so I'm sure they have no reason to want to keep me in their camp at this point.

The card started off as a credit builder card - it did what it was meant to do.  I guess my needs and expectations with where I'm at now have outgrown the card and possibly what they would do for me.  It went from $300 to $500 to $1000.  It feels like a exercise in futility to buy a soda and let it report and pay off and have to pay to keep the card annually.  Then again, I should be grateful for Capital One playing a vital role in my credit journey - I almost feel bad in a way but will get over it once I hang up the phone with them.

Am I on the right plane of thinking at this point? 

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Yes, there are two schools of thought on the cards, and while I am firmly in the "close" camp, I will admit that there is very little advantage/disadvantage in either approach.

1) Keep all non-AF cards, making small keep-alive purchases from time to time.   This helps AAoA continue to grow (and avoids the 10 year drop off), helps utilization, allows you to negotiate with companies when you want a card and they have concerns (you can offer to close or transfer limits at that point)

2) If you don't need it, close it.   Often, like with you, the cards being considered have small CLs relative to other cards, so the utilization impact is small, who needs to bother with periodic purchases, there is a slight danger of fraud or missing issuer changes (like adding an AF)

No need to feel guilty about closing, the issuer really doesn't care.  You have moved on and don't need this type of card.

But my earlier comment about "crapital one", if they were useful to you in starting/rebuilding, just don't use terms that might put others off who need them in the same situation.

[takeshi74]

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@KneelBeforeZod wrote:

Is there any danger of submitting a payment once more than once before the statement cuts to keep zero balance?  Do they like this, not like this?

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No -- does not matter either way.  Do what works for you.  Creditor in general aren't going to complain that you're paying them.  Some may have limits on number of payments or how often you can make payments through their site.

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@KneelBeforeZod wrote:

 I got the 7-10 day kiss of death message

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7-10 isn't KOD.  It just means a manual review is needed.

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@mongstradamus wrote:

I am in minority, but if it has no AF i wouldn't mind keeping it open.

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Definietly not the minority on myFICO.  Might be the minority on some other sites though.

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@KneelBeforeZod wrote:

Am I on the right plane of thinking at this point?  

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There's no absolute right or wrong.  You need to go with what works for you.  If you don't think you can use it and the impact of closing doesn't bother you then closing it may be the best choice for you.  You can calculate utilization before and after to help you in your decision making but I would guess that losing $1K won't matter much with your other limits.

My CO rebuilders didn't grow with me and I wasn't aware that PC'ing was an option back then so I closed them.  I'm not sure I would have gone through the hassle anyway even knowing what I know now.

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@KneelBeforeZod wrote:

Then again, I should be grateful for Capital One playing a vital role in my credit journey - I almost feel bad in a way but will get over it once I hang up the phone with them.

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You can be grateful but you don't need to feel bad.  They didn't do so for your benefit out of the goodness of their hearts.

[KneelBeforeZod]

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@Anonymous wrote:

But my earlier comment about "crapital one", if they were useful to you in starting/rebuilding, just don't use terms that might put others off who need them in the same situation.

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I do stand corrected on this - they were useful for me and I should not have used this name for them.   Thanks for the firm nudge on this longtimelurker!