Northern Lights Posted November 7, 2005 Report Share Posted November 7, 2005 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? Link to comment Share on other sites More sharing options...
LNY Posted November 7, 2005 Report Share Posted November 7, 2005 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. Link to comment Share on other sites More sharing options...
Anonymous Posted November 7, 2005 Report Share Posted November 7, 2005 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. Link to comment Share on other sites More sharing options...
LNY Posted November 7, 2005 Report Share Posted November 7, 2005 Grim, you stole my line! At least give me a credit!! Link to comment Share on other sites More sharing options...
Anonymous Posted November 7, 2005 Report Share Posted November 7, 2005 Grim, you stole my line! At least give me a credit!!There you go. I knew I was snagging someone's line but I totally forgot who and I was too lazy to search. Link to comment Share on other sites More sharing options...
LNY Posted November 7, 2005 Report Share Posted November 7, 2005 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!!!! Link to comment Share on other sites More sharing options...
Anonymous Posted November 7, 2005 Report Share Posted November 7, 2005 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. Link to comment Share on other sites More sharing options...
LNY Posted November 7, 2005 Report Share Posted November 7, 2005 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. Link to comment Share on other sites More sharing options...
Anonymous Posted November 7, 2005 Report Share Posted November 7, 2005 That could be the case. This bank prez is very "old school". He rarely writes a loan without seeing and talking to the person first. The thought of paying Crap1 17-19% interest though just to fake a credit limit... eee gads. Link to comment Share on other sites More sharing options...
LNY Posted November 7, 2005 Report Share Posted November 7, 2005 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! Link to comment Share on other sites More sharing options...
Northern Lights Posted November 7, 2005 Author Report Share Posted November 7, 2005 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 highAt 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? Link to comment Share on other sites More sharing options...
LNY Posted November 7, 2005 Report Share Posted November 7, 2005 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. Link to comment Share on other sites More sharing options...
Recovering Attorney Posted November 7, 2005 Report Share Posted November 7, 2005 I agree with LNY. If you can't get them to waive the fees, keep the older of the 2 and close the other. Make sure you request the closure in writing and say " Please report to the CRAs that this account was closed at the consumer's request." Link to comment Share on other sites More sharing options...
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