Close first Credit card? Useless to me, low CL plus annual fee.

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Kionts
 
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Close first Credit card? Useless to me, low CL plus annual fee.

Postby Kionts » Sat Dec 27, 2014 4:23 pm

Hello, I've been a lurker for a while and would appreciate some help.

My first CC is a Platinum Capital One, when I had no credit history. It has a $750 limit with no benefits, haven't used it in years. I want to get rid of it because of the $30 or so annual fee. The problem is that it is my first credit card.

I have an offer to upgrade it to a Quicksilver One, not much better and still has annual fee.
I asked for a CL increase but it was denied due to no usage. I have a 750 credit score. So I know my history is not an issue.

I only see two options
Close it and take the hit.
or upgrade it and probably not use it anyway.

I'm thinking on just closing it, I didnt get another card until 2 years later, so I'm not sure how much is that going to affect my score.


Brad Bishop
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Postby Brad Bishop » Sat Dec 27, 2014 6:43 pm

Just close it and don't worry about it.

p51
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Postby p51 » Sun Dec 28, 2014 1:38 pm

Kionts wrote:


I'm thinking on just closing it, I didnt get another card until 2 years later, so I'm not sure how much is that going to affect my score.


I'm somewhat in the same boat. Opened a secured Cap One in 2012. Have since gotten 3 unsecured cards. Scared to close the Cap One & take a credit hit due to Average Age of Accounts. Not sure what to do.
Capital One secured opened May 2012 -- $1401 ($1200 of my own money to increase limit) I will be closing this as soon as I qualify for an AMEX Simply Cash business card (hopefully this summer).
Amex PRG opened Nov 2014 -- No preset spending limit
Chase Freedom Nov 2014 -- $4000
Bank of America Cash Rewards Nov 2014 -- $2500

oldsoldier
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Postby oldsoldier » Sun Dec 28, 2014 1:54 pm

Cap one more than likely will give you an auto cli after you upgrade your card and use it a few times. I would say if you don't plan on using it the best thing to do is to close the card out.
BoA Cash Rewards $13,000
Chase Sapphire Preferred $14,000
BoA Better Balance $12,000
Amex Every Day $24,000
Discover It $17,000
NFCU Platinum Visa $25,200
Barclay Arrival WMC $10,000
Cap One QuickSilver WMC $6,200
WF Cash back Visa Sig $11,000
Citi Thank You Premier $11,600

popamode72
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Postby popamode72 » Sun Dec 28, 2014 5:15 pm

Kionts wrote:Hello, I've been a lurker for a while and would appreciate some help.

My first CC is a Platinum Capital One, when I had no credit history. It has a $750 limit with no benefits, haven't used it in years. I want to get rid of it because of the $30 or so annual fee. The problem is that it is my first credit card.

I have an offer to upgrade it to a Quicksilver One, not much better and still has annual fee.
I asked for a CL increase but it was denied due to no usage. I have a 750 credit score. So I know my history is not an issue.

I only see two options
Close it and take the hit.
or upgrade it and probably not use it anyway.

I'm thinking on just closing it, I didnt get another card until 2 years later, so I'm not sure how much is that going to affect my score.


If you can't get something through the EO, then definitely close it out.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)

takeshi
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Postby takeshi » Mon Dec 29, 2014 8:13 am

Kionts wrote:The problem is that it is my first credit card.

How is that a problem? Is this your only card?

Kionts wrote:I'm thinking on just closing it, I didnt get another card until 2 years later, so I'm not sure how much is that going to affect my score.

The major immediate impact due to closure is to your utilization. You can calculate utilization before and after closure to aid you in your decision making. AAoA is not affected until the accounts falls off your reports and that's typically 10 years after closure. For optimal scoring purposes at least 2-3 are recommended. It's up to you to decide using that information and your specific needs/wants.

p51 wrote:I'm somewhat in the same boat. Opened a secured Cap One in 2012. Have since gotten 3 unsecured cards. Scared to close the Cap One & take a credit hit due to Average Age of Accounts. Not sure what to do.

AAoA includes closed accounts. You don't reduce AAoA by closing accounts. You reduce AAoA by opening accounts.

ingramjuan
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Postby ingramjuan » Tue Dec 30, 2014 1:21 am

Have the same problerm, but decided not to close because it was my first card and the next card I got came 5 years later.
CARDS:
Capital One Platinum (2001) |Capital One QuickSilver World (2002) | Amex Gold Delta (2013) | Best Buy Visa (2013) |Discover It (2015) | Amex Platinum (2015)

Gardening Since: June, 2015

Next Cards:
Personal: Chase Freedom Unlimited
Business: Amex Plum
Store Card: Lowes

p51
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Postby p51 » Tue Dec 30, 2014 10:14 pm

takeshi wrote:How is that a problem? Is this your only card?


The major immediate impact due to closure is to your utilization. You can calculate utilization before and after closure to aid you in your decision making. AAoA is not affected until the accounts falls off your reports and that's typically 10 years after closure. For optimal scoring purposes at least 2-3 are recommended. It's up to you to decide using that information and your specific needs/wants.


AAoA includes closed accounts. You don't reduce AAoA by closing accounts. You reduce AAoA by opening accounts.


Thank you for the clarification. I'm VERY new to the good credit game. If i close the Cap One, how do i calculate utilization?
Since getting the new cards I probably won't use the Cap One at all.
Cards: Amex PRG, B of A Simply Cash-$2500, Chase Freedom--$4000
Capital One secured opened May 2012 -- $1401 ($1200 of my own money to increase limit) I will be closing this as soon as I qualify for an AMEX Simply Cash business card (hopefully this summer).
Amex PRG opened Nov 2014 -- No preset spending limit
Chase Freedom Nov 2014 -- $4000
Bank of America Cash Rewards Nov 2014 -- $2500

popamode72
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Location: Atlanta, GA

Postby popamode72 » Tue Dec 30, 2014 10:16 pm

p51 wrote:Thank you for the clarification. I'm VERY new to the good credit game. If i close the Cap One, how do i calculate utilization?
Since getting the new cards I probably won't use the Cap One at all.
Cards: Amex PRG, B of A Simply Cash-$2500, Chase Freedom--$4000


I think you have enough credit there to the point where your utilization won't be affected too much. Also charge cards aren't factored into utilization for the FICO score. I'm sure you can also get something way better than that Cap One card in the future. You'e already have a solid line up of a cards so far.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)

Kionts
 
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Location: Norfolk Virginia

Postby Kionts » Wed Dec 31, 2014 1:33 am

Yes, thanks for all the information. I've decided to close the Capital one.
I was concerned since you always read/hear "do not close your first credit card", and I thought that as soon as I closed that one, that history would be gone as it never happened, and bring down my credit score with it.

Not my only card though, at the moment I have a Credit union cc, Amazon chase, Amex PRG, and the Capital one. I received an Amex Platinum mail offer, but I don't travel enough. Aiming at the Chase Freedom, or one of the Amex CC.



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