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Capital One Leave Open or Close


Northern Lights
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I have a Platinum and Preferred Plus Capital One cards. I just paid off the balances on both cards and received a Visa card from my Credit Union.

Visa reports my limits while Capital one does not. Capital one cards have yearly membership dues.

My idea is to close the Capital one accounts but will that knock down my credit score?

I see no good in leaving the cards open since they don't report the limits plus they are charging the membership dues any thoughts?

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How long have you had the Cap One cards? You don't want to lose nicely aged accounts. Doesn't mean you have to use them, though. I'm all for sockdrawering Cap One cards.

There's every possibility that they will waive at least one of your annual fees as a courtesy. They just waived one $59 annual fee and cut a $29 fee in half for me just because I asked. Give it a try.

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If you call Crap1 and tell them you are cancelling and you are just going to sockdrawer the cards (don't tell them you're sockdrawering though) they will first offer $10 off, then $20, I got my entire annual fee removed by threatening to close one Crap1 card, and I'm going to do the same to the other when the balance is paid off.

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Good boy!! 8)

Anyway, I never threatened Crap One to get the fees waived. I just asked. Of course now that they're waived and I've faked up my "high credit" to a useful level, guess what's in MY sock drawer!!! CRAP ONE!!!! 8-)

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I've seen the postings about faking the high credit, but according to the bank president I worked with to get my motorcycle loan, the highest amount charged doesn't mean squat to credit scoring. He doesn't like Capital One because it does drag down a credit score no matter how it's sliced.

He considers C-1 cards to be "next to worthless" when reviewing a creditors overall picture. His advice was to use Crap1 to get 2-3 years of history and get prime cards and close the account.

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The first time I did it, it made an immediate difference in my score because my artificial utilization of 76% went back down to the actual 5%. They DO use the highest amount charged as the proxy for the credit limit for scoring purposes, so it has a 30% bearing on your score.

On things like motorcycle loans, though, a human is more likely to scrutinize your report... so in that case, your statement would be correct. But credit scoring in general is completely computerized and doesn't know or care if a card is prime or subprime. Credit scoring only knows numbers, dates etc. So creating a higher credit limit for your Capital One card is kinda necessary to help your score.

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Once you're in their trap, you have to make the best of it until you are in a position to get out. ;)

Plus, by doing this, you force them to report your limit--or close to it--whether they want to or not. Then you sockdrawer that sucker. You've repaired your utilization % and they've effectively lost you as a customer. They get nothing from you anymore. Especially if you've sweet-talked them into waiving your annual fees! 8-)

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Both cards are over year old and here is my next problem from myfico scores.

1.The proportion of balances to credit limits (high credit) on your revolving/charge accounts is too high

At the time of the pull I had only two capital one cards and one Citi

financial loan. My other loans are for two cars. Capital one was showing credit limit(high credit) was 306.00 with a balance of 285.00.

Now prior to having any credit cards myfico also had the same listing so now I am wondering if Fico considers my Citi Loan a revolving credit card account.

Any thoughts on this mess and proportion of balances to credit limits?

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Ah, my dear... you've opened the proverbial can of worms now. I've talked this subject into the ground lately, not least of which in this thread. I'd be shot on sight if I went into it again.

Loans are considered installment, not revolving, so I don't know why myfico would have said that. Having paid off your Crap One cards, that message should disappear.

I wouldn't close the cards. They're your only positive, open revolving TLs right now. And there's every chance their limits will be upped now that you've paid them on time for a year (Crap One often does that). Keep them open, throw 20 bucks a month on them, pay in full and basically keep them active and reporting. If you're rebuilding, that's your goal.

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