Closing Credit Card Accounts

[TrueGeminiNC]

Hi All,

I have 2 Capital One accounts with limits of $500.00 each.  One of the accounts was opened back in 2005 while the other account was opened about a year ago.  I tried for several years to get a CLI on the older account.  Thereafter, I finally took the advice of a customer service representative and applied for a new account.  Despite being approved for the new account, I was hesitant considering I wondered why they would recommend applyig for a new account when they continually declined my request for a CLI on an open account.  

However, I recently applied for a received an AMEX card in addition to a LOC with my bank (Citibank).  The AMEX card does not have a spending limit while the LOC is for $2,500.00.  

Is there a way to figure out how my FICO score will be impacted if  I close the 2 Capital One accounts?  One of my Capital One accounts has an annual fee and too in the past I have been denied credit for having accounts with small limits.  

My oldest credit card account is 16 years old with a limit of $7,800.00.  

Any thoughts?

[Anonymous]

Read the sticky in my signature about closing credit cards.  Some very good information.

[AndySoCal]

I have read several posts about people contacting the Capitol One executive office.  Most of the posts have had good sucess in getting a CLI . I cannot find the contact info to call or email. Maybe some one can provide this if you are interested.

[TrueGeminiNC]

Yes, I emailed the CEO earlier this week with no success.  

I also called customer service and was transferred to a US based representative who was very open and honest.  She suggested that Capital One is not a traditional lender and typically only offers smaller credit lines with higher interest rates.  She also suggested that Capital One only allocates so much for credit line increases at any given time so that the company can remain solvent.  I suppose only their best or top tier customers receive CLI.  Each time that I have requested a CLI, the response is always something about Capital One not accpeting customer initiated CLI at this time.  

But, now that I have a new AMEX card in addition to a LOC from Citibank, I don't really see much need for my Capital One cards.  I have actually removed them from my wallet and only carry the AMEX and 2 other Citibank credit cards.  

There was some really good information in the link from the post above and I beleive that I will move forward and close the Capital One accounts right before the annual fee is charged.  By then, my AMEX and LOC will have been added to my credit with several months of history.  

[Anonymous]

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@JAY305 wrote:

Hi All,

I have 2 Capital One accounts with limits of $500.00 each.  One of the accounts was opened back in 2005 while the other account was opened about a year ago.  I tried for several years to get a CLI on the older account.  Thereafter, I finally took the advice of a customer service representative and applied for a new account.  Despite being approved for the new account, I was hesitant considering I wondered why they would recommend applyig for a new account when they continually declined my request for a CLI on an open account.  

However, I recently applied for a received an AMEX card in addition to a LOC with my bank (Citibank).  The AMEX card does not have a spending limit while the LOC is for $2,500.00.  

Is there a way to figure out how my FICO score will be impacted if  I close the 2 Capital One accounts?  One of my Capital One accounts has an annual fee and too in the past I have been denied credit for having accounts with small limits.  

My oldest credit card account is 16 years old with a limit of $7,800.00.  

Any thoughts?

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Will closing your Cap one's hurt your util?  I believe in my case. LOC from bank (for overdraft protection) did figure into my revolving account util.  Do you have any other credit card than the 16 years old one you mention?  Would be good to have more than just 1 credit card.

I also have a question, you mentioned that you have been denied credit for having accounts with small limits?  This was a stated reason for denial?

[TrueGeminiNC]

The Capital One accounts only have limits of $500.00 each.  The Citibank LOC, is actually the Citibank Checking Plus/Overdraft account.  I have never overdrew my checking account nor do I plan to use the LOC.  I simply want to build upon my banking relationship with Citibank to increase my chances of being approved for a mortgage in the coming months.  But, the LOC greatly exceeds the credt limits of the 2 Capital One accounts so I am not really worried about the utilization piece.  

Yes, a card that I currently have with Citibank is actually my oldest card with 16 years of history.  I will be keeping this account.  The Capital One cards were opened in 2005 and 2012 respectively.  

In the end I will have 2 Citibank cards, an AMEX and a LOC; all with decent credit lines (excluding the AMEX which does not have a preset limit).

Lastly, yes.  I can't remember which card I applied for.  But, in the response it specifically suggested that one of the reasons  for being declined was because I had accounts with relatively small balances.  

[dddewdrop]

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@JAY305 wrote:

The Capital One accounts only have limits of $500.00 each.  The Citibank LOC, is actually the Citibank Checking Plus/Overdraft account.  I have never overdrew my checking account nor do I plan to use the LOC.  I simply want to build upon my banking relationship with Citibank to increase my chances of being approved for a mortgage in the coming months.  But, the LOC greatly exceeds the credt limits of the 2 Capital One accounts so I am not really worried about the utilization piece.  

Yes, a card that I currently have with Citibank is actually my oldest card with 16 years of history.  I will be keeping this account.  The Capital One cards were opened in 2005 and 2012 respectively.  

In the end I will have 2 Citibank cards, an AMEX and a LOC; all with decent credit lines (excluding the AMEX which does not have a preset limit).

Lastly, yes.  I can't remember which card I applied for.  But, in the response it specifically suggested that one of the reasons  for being declined was because I had accounts with relatively small balances.  

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      That response comes out of an experidian plus model if I remember it. The basic fico score models dont return a response like that because the actual number of one's credit limit does not directly affect credit score. It may indirectly affect it by changing your utilisation percentage if you carry balances.

[Anonymous]

I had a similar issue recently with capital one and first premier. Your Fico score will probably not be drastically effected because your oldest account is so old. It will however change you EX score because it takes into account your averaged credit limits. I've actually come to realized that a lot of loan companies actually use the EX score. But as long as its not your oldest account it won't matter. Stay away from any card that won't give you a respectable limit.