Will Capital One Close My Credit Card Account?

[Anonymous]

Almost three years ago I missed a few payments in a row on my Cap1 card, which sent it over limit. They closed it out from under me and left me with a balance. The credit limit was $1100 and the balance upon closure was something like $1200. Had probably 10 30+ days late, several 60+ days late, and a couple 120+ days late marked on the account. 

Anyways, the deal was basically that they close it and I pay down the balance as usual, except that I can't use the card obviously (the site says "Account Restricted"). Once the balance hit zero it would automatically close. 

So in order to help my credit history, I decided to just put a few hundred dollars into it and then make slightly over minimum payments (i.e. pay $20 when my minimum is $15). That way I could keep the the account gaining history for my AAoA and slowly remove myself from the late payments over several years of on-time payments. After a number of disputes with them through the CBs, I slowly whittled away the negative history of it as well. For example, I disputed the late payments and they removed a 120+ day late and some 30+ days late. Did it again and they removed the other 120+ day late and a 60+ day late. 

Flash forward several years and I have an "amended" perfect history with them. My CRs now all indicate that the account is 10 years old and has zero negative history. The rub is, however, that no CR makes note that the account was closed. It is still displaying as an open account with a $1200 limit and my (current) $175 balance. 

It's an issue for me because it is now my oldest account at 10 years and displays perfectly. It's a beacon on my credit report. 10 years of on-time payments. Account is still restricted, however. I'm afraid that once the balance eventually hits $0, it will close and I'll start losing the positives of the account. My AAoA will start to deteriorate as the Cap1 account is no longer aging and the credit limit will no longer count toward my utilization. 

Has anyone been in this situation? I'm afraid to call because it may be a mistake or something and they'll say "Oh, that should display as closed" and amend my credit report. Feel like I'm sitting here in a sweet spot and I don't want to ruin it. 

In the meantime I got another Cap1 card that I've been paying on for 1.5 years with perfect history. 

Any suggestions? I would love to just pay this off and let it sit open at $0 and help my AAoA/utilization, but I'm afraid it will just close out when it hits zero. Am I doomed to forever make minimum payments to keep from getting to a zero balance? 

[compassion101]

AAoA is calculated using all accounts on your reports, whether they are closed or open.

So if they already closed it a couple years ago, it should generally fall off 10 years from then. If they close it tomorrow then generally 10 years from tomorrow. By keeping it open you aren't really helping your AAoA other than your score may be a few points higher 10 years from now for an extra couple of months, which IMO isn't worth much.

[Wolf3]

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@Anonymous wrote:

Almost three years ago I missed a few payments in a row on my Cap1 card, which sent it over limit. They closed it out from under me and left me with a balance. The credit limit was $1100 and the balance upon closure was something like $1200. Had probably 10 30+ days late, several 60+ days late, and a couple 120+ days late marked on the account. 

Anyways, the deal was basically that they close it and I pay down the balance as usual, except that I can't use the card obviously (the site says "Account Restricted"). Once the balance hit zero it would automatically close. 

So in order to help my credit history, I decided to just put a few hundred dollars into it and then make slightly over minimum payments (i.e. pay $20 when my minimum is $15). That way I could keep the the account gaining history for my AAoA and slowly remove myself from the late payments over several years of on-time payments. After a number of disputes with them through the CBs, I slowly whittled away the negative history of it as well. For example, I disputed the late payments and they removed a 120+ day late and some 30+ days late. Did it again and they removed the other 120+ day late and a 60+ day late. 

Flash forward several years and I have an "amended" perfect history with them. My CRs now all indicate that the account is 10 years old and has zero negative history. The rub is, however, that no CR makes note that the account was closed. It is still displaying as an open account with a $1200 limit and my (current) $175 balance. 

It's an issue for me because it is now my oldest account at 10 years and displays perfectly. It's a beacon on my credit report. 10 years of on-time payments. Account is still restricted, however. I'm afraid that once the balance eventually hits $0, it will close and I'll start losing the positives of the account. My AAoA will start to deteriorate as the Cap1 account is no longer aging and the credit limit will no longer count toward my utilization. 

Has anyone been in this situation? I'm afraid to call because it may be a mistake or something and they'll say "Oh, that should display as closed" and amend my credit report. Feel like I'm sitting here in a sweet spot and I don't want to ruin it. 

In the meantime I got another Cap1 card that I've been paying on for 1.5 years with perfect history. 

Any suggestions? I would love to just pay this off and let it sit open at $0 and help my AAoA/utilization, but I'm afraid it will just close out when it hits zero. Am I doomed to forever make minimum payments to keep from getting to a zero balance? 

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The account is closed, you have a balance and are still making payments.   So when it goes to $0 it will close and then it will continue to age your AAoA for 10 more years.  So all should be good until past 2022.

So you have turned a negative account into a very good account for your CR for quite a long time.   I image it has cost you hundreds of dollars over that time though.  

[Anonymous]

Definitely worth the money/hassle to make it a good account though. 

Though, I don't see any notation that it is closed ANYWHERE. Not on my real credit reports or my myfico credit report. I have other accounts that are clearly closed by notation on the account. What's up with this? Does it just not display as closed as long as there is still a balance?

[injustifiiable]

That's what it looks like to me...probably not considered "closed" until the balance is paid.

[Anonymous]

any update from the OP on this?

[Anonymous]

Update on what?

[MaRain]

To the OP (xi), if you don't mind sharing, what was the outcome (i.e. did you pay off the balance and is the account now showing as closed on your CR, etc...)?

[b_seeker]

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@MaRain wrote:

To the OP (xi), if you don't mind sharing, what was the outcome (i.e. did you pay off the balance and is the account now showing as closed on your CR, etc...)?

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Date Last Visited ‎10-24-2012 01:55 PM

I wouldn't expect a reply from the OP. Sorry.

[MaRain]

Thanks b_seeker for taking the time to give me a heads up. Thankfully,  I found a similar thread and got an idea of what would happen (account showed as closed with a 0 balance). So far, everyone on these boards have been a great resource and it is awesome to find information from other people who have been/are in similar situations and what the process/outcome was. I wish I could contribute more but am still understanding the credit rebuilding process myself and don't want to give out incorrect info. 

Thanks and I look forward to seeing you around the boards