What to do with Capital One?

[Anonymous]

I have a Capital One Quicksilver card that started out as a platinum and has a fairly low limit and a very high interest rate. Of course Capital One isn't known for lowering interest rates or being generous with CLIs, so I'm tempted to close it. It has no annual fee so I could leave it open indefinitely and just sockdrawer it, but I assume Capital One would eventually close it on their own if I did that?

When I check Capital One's prequalification site, it gives me prequals for both the Venture and the Quicksilver at a substantially lower interest rate (and I'd guess I'd get a much higher limit, too, but that's just a guess).

Does Capital One still allow the combination of credit lines? If I get a new Quicksilver with the better terms, could I merge my current credit line into it? Should I close my Quicksilver and replace it with a new one with better terms? Close it and just be done with Capital One? Try and create a card with a mega limit? 

[Anonymous]

there's no need for a "mega limit" really but they do still combine limits. so if cap1 will be a good card for you in the future then sure, get the newer one and combine limits after 6 months. if you have no real need for it then just SD it or close it and move on

[Anonymous]

You can combine after both cards are six mos old, need zero balance on card you're closing.

[Anonymous]

Just out of curiosity, why is APR so important? It's a rewards card, if you pay interest it completely negates the rewards. 

If if you're unhappy with it, close it. But, that's a pretty good card to close IMO. It should grow in time if that's a point of concern for you.

[Anonymous]

I've never paid interest on any of my cards so far, but I still like to keep my APRs as low as possible, just in case I ever get in a bad situation and end up carrying a balance.

I also have a line of credit at 8% that I've never used, for the same reason. My theory is that if I ever can't pay the full balance on a credit card by the end of the grace period, I can still pay it off with the LOC and save myself a bundle over what the cards charge. But I like to keep as many options as possible, because I know life has plenty of curveballs.

[Anonymous]

How long will Capital One let me keep my account open if I never use it? Will they close it for inactivity after six months or a year?

[Anonymous]

idk the exact time but definitely over 6 months. i went almost a year without using one and it stayed open until i closed it. but, as stated, APR shouldn't matter much. not worth a new tradeline; especially since you have a LOC at 8%... that's a good APR for the "just in case".

[Anonymous]

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@Anonymous wrote:

How long will Capital One let me keep my account open if I never use it? Will they close it for inactivity after six months or a year?

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A while. Not sure on exact time frame. A few people have had theirs open without utilizing it for years and it's still open. If I was you I'd use it once a year to keep it open, but if you want it to grow, you should utilize it more often

[NRB525]

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@Anonymous wrote:

I've never paid interest on any of my cards so far, but I still like to keep my APRs as low as possible, just in case I ever get in a bad situation and end up carrying a balance.

I also have a line of credit at 8% that I've never used, for the same reason. My theory is that if I ever can't pay the full balance on a credit card by the end of the grace period, I can still pay it off with the LOC and save myself a bundle over what the cards charge. But I like to keep as many options as possible, because I know life has plenty of curveballs.

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If the Capital One has no AF, keep it open. Your apping results for a new CapOne card will be much better with an existing, active CapOne card than if you close it now, then try to come back for a CapOne app later.

The LOC interest rate looks OK, but really, with that Discover limit? You should have basic Discover BT offers that include a no-BT-fee 4.99% APR that beats the line of credit, on APR and available credit, and is an easy path to transfer from other cards if you want to move a balance. While you may not have paid any interest on any cards so far, it might be worthwhile just to try a small BT to Discover to see how it works.

Your Capital One has no BT Fee also. I have been using my 10.9% QS for "fun transfers". I transfer $400 from another card to the QS. The QS is on a $212 per month auto payment. The first statement on the QS has no interest cost. The second has less than $2 interest cost, and $212 is paid during this period. The third statement is back to a zero balance, and has no interest cost. So really, the QS can be a "float" source at "low APR" as well, for a few months.

[NRB525]

An easy way to keep your QS active, without actually using it for swipes, and without paying any interest, is to do the following:

Set up the QS with autopayment of some large amount, say $300.

Just after a QS Zero statement cuts (statement #1), arrange a BT from another card for an amount somewhere under that Autopayment amount.

Let's transfer $250 to the QS two days after the QS statement #1 prints.

At the next QS Statement (statement #2), there won't be any interest cost. The statement will indicate an autopayment of $250 will be made on xx date.

The autopayment will occur, for the $250.

When the Statement #3 prints, it will also be zero balance. No interest cost.

A few days later, do a no-fee BT of $250 (or whatever your number is) onto the QS, and start the cycle all over again. Fun!