Should I cancel my card?

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

Should I cancel my card?

Postby andy1088 » Wed May 02, 2012 12:35 pm

As some of you may have seen around the board I was in a battle with Capital One. Long story short my newcomer rewards card SUCKS. I have a horrible credit line ($500) horrible apr (24.9%) and horrible rewards (1% and 2% on travel, but who travels for less than $500). I really want to cancel the card, but am having second thoughts because it's my oldest (13 months) card and my next oldest card is only 5 months which will kill my AAOA on my credit score. Should I risk lowering my score to avoid keeping this horrible card and horrible company, or should I suck it up and just sock drawer (which I've been doing for 5 months now) the card? Any and all advice is appreciated and wanted.
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


namvet
Centurion Member
Centurion Member
 
Posts: 140
Joined: Mon Dec 26, 2011 4:17 pm
Location: Texas

Postby namvet » Wed May 02, 2012 1:22 pm

andy1088 wrote:As some of you may have seen around the board I was in a battle with Capital One. Long story short my newcomer rewards card SUCKS. I have a horrible credit line ($500) horrible apr (24.9%) and horrible rewards (1% and 2% on travel, but who travels for less than $500). I really want to cancel the card, but am having second thoughts because it's my oldest (13 months) card and my next oldest card is only 5 months which will kill my AAOA on my credit score. Should I risk lowering my score to avoid keeping this horrible card and horrible company, or should I suck it up and just sock drawer (which I've been doing for 5 months now) the card? Any and all advice is appreciated and wanted.


No you don't need to cancel that card at this point in your credit build. Keep all your cards until you have been approved for better cards. It takes time and patience to build a great score and credit card portfolio. Use you cards every now and then to show activity.

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

Postby andy1088 » Wed May 02, 2012 2:16 pm

I have other cards that are great. Capital One at this point to me is utterly useless. I have no plans to touch the card.
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

User avatar
bisbicos
Centurion Member
Centurion Member
 
Posts: 284
Joined: Sun Jul 17, 2011 12:38 am
Location: Newton, MA

Postby bisbicos » Wed May 02, 2012 2:39 pm

Is there an annual fee? If not keep it open
Credit Cards
American Express: Fidelity Rewards (2% cash back) 9.5k
Zync NPSL
Discover: Discover More (5% rotating categories) 12k
Mastercard: Chase Freedom (5% rotating categories) 4.6k
Visa: Citi Forward (5x pts on restaurants) 15.7k
Citi Dividend (5% rotating categories) 5.6
Capital One Journey (1.25% cash back) 1.25k
BofA AAA (5% on gas) 2.5k
PenFed Platinum Rewards (5% on gas 3% groceries) 7.5k

Future Cards
US Bank Cash +
Chase Ink

Starwind
Green Member
Green Member
 
Posts: 7
Joined: Tue Apr 03, 2012 10:53 pm
Location: Indiana

Postby Starwind » Wed May 02, 2012 3:52 pm

andy1088 wrote:As some of you may have seen around the board I was in a battle with Capital One. Long story short my newcomer rewards card SUCKS. I have a horrible credit line ($500) horrible apr (24.9%) and horrible rewards (1% and 2% on travel, but who travels for less than $500). I really want to cancel the card, but am having second thoughts because it's my oldest (13 months) card and my next oldest card is only 5 months which will kill my AAOA on my credit score. Should I risk lowering my score to avoid keeping this horrible card and horrible company, or should I suck it up and just sock drawer (which I've been doing for 5 months now) the card? Any and all advice is appreciated and wanted.


How important is it to really show activity? I have a capital one card I'm abandoning as well. Plan to keep it just cause it's my oldest card but I don't plan on using it.

Moneytalks
Centurion Member
Centurion Member
 
Posts: 438
Joined: Sat Feb 04, 2012 8:22 pm
Location: United States

Postby Moneytalks » Wed May 02, 2012 6:51 pm

andy1088 wrote:As some of you may have seen around the board I was in a battle with Capital One. Long story short my newcomer rewards card SUCKS. I have a horrible credit line ($500) horrible apr (24.9%) and horrible rewards (1% and 2% on travel, but who travels for less than $500). I really want to cancel the card, but am having second thoughts because it's my oldest (13 months) card and my next oldest card is only 5 months which will kill my AAOA on my credit score. Should I risk lowering my score to avoid keeping this horrible card and horrible company, or should I suck it up and just sock drawer (which I've been doing for 5 months now) the card? Any and all advice is appreciated and wanted.


I've been following your story since the beginning and I can definitely understand why you want to cancel and be done with them....BUT, if you want my opinion (which you're asking for) I vote to keep it in the sock drawer, because it will put a dent your average age of accounts depending on how long you've had the card for. Don't cancel to hurt yourself, don't use it to help them, stay neutral and just keep in in the dark corner of your bureau haha
Wallet: Amex BCE & Chase Freedom. (Credit Card dieting since 2014)

Crashem
Centurion Member
Centurion Member
 
Posts: 538
Joined: Fri Mar 09, 2012 9:29 am
Location: San Francisco, CA

Postby Crashem » Wed May 02, 2012 8:46 pm

There are some misunderstandings on Average Age of Accounts. All accounts count including closed and open accounts. There is no hit from closing an account. BUT, in 10 years, closed accounts will disppear off your credit report.

So lets take the Original Poster as an example. I am assuming he has gotten his more recent cards within the last 5 months and the 13 month cap one card he wants to close. When he closes it, it will still figure into his AAoA. In 10 years from now, it will fall off, but by that time his other cards will have aged. You really get hurt closing cards when there is a big gap between accounts and you want to close one of the old accounts which is not the case here.

So that being said here is my advice:

1) Wait till the annual fee is due and close it before then. Why not get some more AAoA out of it since you have already paid the annual fee. Now if it was a really high risk card that charges monthly fees, I would have recommended to close it ASAP.

2) The original poster has 3 other trade lines. He has done a good job of getting better cards quickly (ones that will grow with him for a while which is the most important thing when starting off). If he only had 1 or 2 other trade lines, I would have recommended to keep the Cap One card open until he had 3 other trade lines which is ideal for building FICO (IMHO). Most likely in 6 months to 1 year, assuming the FICO score is there, he should think about some more ideal cards which will grow his CL and rewards.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

Moneytalks
Centurion Member
Centurion Member
 
Posts: 438
Joined: Sat Feb 04, 2012 8:22 pm
Location: United States

Postby Moneytalks » Wed May 02, 2012 9:56 pm

Woah, I definitely misunderstood it, thanks Crashem!
Wallet: Amex BCE & Chase Freedom. (Credit Card dieting since 2014)

Crashem
Centurion Member
Centurion Member
 
Posts: 538
Joined: Fri Mar 09, 2012 9:29 am
Location: San Francisco, CA

Postby Crashem » Wed May 02, 2012 10:08 pm

Although as I thought about it more, there is no hit on AAoA in short term (10 years from now yes). But closing a card can hurt you though. It will hurt if there are any utilization issues as you are reducing your total available credit. Don't think there are any other issues but FICO is a "bit" mysterious.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

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

Postby andy1088 » Thu May 03, 2012 7:10 am

I see. It is my lowest credit line ($500) and I have $4,000 other credit line other there. I only have about a $700 utilization and about $400 of it is coming out next week. My utilization is only 18%
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



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests