Should I close my secured credit card account?

For just about anything you want to get off your chest about credit cards.
8 posts
andy1088
Centurion Member
Centurion Member
 
Posts: 156
Joined: Wed Nov 30, 2011 8:23 pm
Location: New Jersey, United States

Should I close my secured credit card account?

Postby andy1088 » Sun Dec 11, 2011 9:39 pm

I have three (about to be four) credit cards right now.

  • I have a Cap One secured ($300 CL $29 annual fee), cap one rewards for newcomers ($500 cl)
  • Citi Platinum Select ($1,000 CL)
  • Discover More Rewards on its way ($1,000 CL).
  • I have had the secured card about a month longer than the rewards for newcomers. However its becoming a financial burden. It's APR is 24.99% and the annual fee is annoying for such a low credit line.
I spoke to Cap One and they told me that they don't turn secured credit cards into regular cards and don't grant CL increases for them either. I know it hurts to close a credit card account, but should I keep a card that is just being a burden and that I barely use?
My cards
Chase-Sapphire-$5,000 Freedom-$3,000, Amazon rewards-$700, Slate-$600
Citi- Diamond Preferred-$4,000, Thank you-$2,500
Discover IT-$2,500
Bank of America cash rewards-$2,000
Capital one newcomer rewards-$500


sdoonan
Gold Member
Gold Member
 
Posts: 32
Joined: Wed Nov 02, 2011 9:02 am
Location: Hempstead, NY

Postby sdoonan » Mon Dec 12, 2011 6:27 pm

Considering that you now have unsecured lines of credit, and that you've got a card you don't use with an annual fee, I would personally close the secured card.
Cards I Carry:

Visa: CitiForward Student (1k CL, 15.24%), Capital One Student Journey Rewards (.5k CL, 19.8%)
Discover: More Student (1k CL, 17.99% regular, current rate 1.9% through 3/6/12) (Primary card at this time)
AMEX: Blue Cash Everyday (2k CL, 21.25%)

ooxs
Centurion Member
Centurion Member
 
Posts: 304
Joined: Sat Aug 13, 2011 9:38 am
Location: Michigan

Postby ooxs » Mon Dec 12, 2011 8:26 pm

You can but being your oldest card, i recommend keeping it for a while. But as indicated by sdoonan, secure cards are to help you obtain unsecure cards, which you now have. However it will boil down to your willingness to pay 29 dollars.

andy1088
Centurion Member
Centurion Member
 
Posts: 156
Joined: Wed Nov 30, 2011 8:23 pm
Location: New Jersey, United States

Postby andy1088 » Mon Dec 12, 2011 9:51 pm

My problem isn't exactly the $29.. I just feel it's not worth it to pay that much and only get a $300 line of credit. Plus the worst part is the interest is through the roof (it is a secured credit card) and there are NO rewards.

I just wish Capital One had more leniency with credit line increases as both of my other two cards including Discover have $1,000 credit lines but they won't give me more than $500.
My cards
Chase-Sapphire-$5,000 Freedom-$3,000, Amazon rewards-$700, Slate-$600
Citi- Diamond Preferred-$4,000, Thank you-$2,500
Discover IT-$2,500
Bank of America cash rewards-$2,000
Capital one newcomer rewards-$500

jeffysdad
Centurion Member
Centurion Member
 
Posts: 875
Joined: Thu Apr 30, 2009 2:32 pm
Location: Texas

Postby jeffysdad » Mon Dec 12, 2011 11:02 pm

Close it. Don't pay for secured credit you don't need.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

sticf
Centurion Member
Centurion Member
 
Posts: 132
Joined: Mon Jul 18, 2011 10:08 pm
Location: Houston

Postby sticf » Tue Dec 13, 2011 6:20 am

I agree with jeffysdad.

In the short run you might get a ding on your credit score. However, that is not as important as saving the money. Unless you are planning a big credit move in the next year or so (think house or opening a business) you will save money by closing the account. From what I can tell there is not much difference between 10, 20 or 30 years of credit history (ymmv). Average age of account seems to mean more that oldest account. In a few years this average will all kinda level out. Why pay someone $290 (assuming the fee does not increase) over the next 10 years for an account you do not use?

andy1088
Centurion Member
Centurion Member
 
Posts: 156
Joined: Wed Nov 30, 2011 8:23 pm
Location: New Jersey, United States

Postby andy1088 » Tue Dec 13, 2011 10:16 pm

sticf wrote:I agree with jeffysdad.

In the short run you might get a ding on your credit score. However, that is not as important as saving the money. Unless you are planning a big credit move in the next year or so (think house or opening a business) you will save money by closing the account. From what I can tell there is not much difference between 10, 20 or 30 years of credit history (ymmv). Average age of account seems to mean more that oldest account. In a few years this average will all kinda level out. Why pay someone $290 (assuming the fee does not increase) over the next 10 years for an account you do not use?


I 100% agree plus the other Capital One card I have is only like three weeks older. I just feel like the card is wasting my time considering I barely use it and the credit line is so low I really have no need for it. I really feel like Capital One is only for people building credit since they never want to seem to give credit line increases or even help their customers. The secured card at this point is just a financial burden. Do you think if I asked them to combine it with my regular card they would? I could always call and ask and see what could be done and if it could get rid of the annual fee..
My cards
Chase-Sapphire-$5,000 Freedom-$3,000, Amazon rewards-$700, Slate-$600
Citi- Diamond Preferred-$4,000, Thank you-$2,500
Discover IT-$2,500
Bank of America cash rewards-$2,000
Capital one newcomer rewards-$500

jeffysdad
Centurion Member
Centurion Member
 
Posts: 875
Joined: Thu Apr 30, 2009 2:32 pm
Location: Texas

Postby jeffysdad » Wed Dec 14, 2011 8:16 am

I don't think it would hurt to ask them to do what you want, but I wouldn't count on them doing it. Unless there is a compelling reason to keep a credit line that you must pay for the privilege of having -- i.e., you can't get sufficient credit otherwise -- it's frankly crazy to pay for something from which you derive no benefit.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 1 guest