Should I cancel Cap One or open another card first?

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s.jessica
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Should I cancel Cap One or open another card first?

Postby s.jessica » Thu May 16, 2013 10:15 pm

I know lots of people here are down on Capital One, but it seems they are one of the few places who will help people with rebuilding credit. Once upon a time in a land far far away, I was denied a couple of secured cards finding Capital One to be the only place that would give me a card. A few months later, I got in with US Bank and now their card has graduated to an unsecured card with a $500 limit. I boosted my limit with Capital One to $1,500. They did give me a small $300 CLI but the rest is my own money.

I've tried for a few other cards, but keep getting denials. For some reason, Capital One just pre-approved me for a newcomer's card. I was born here in the US so I would expect an instant denial, but they do have a Platinum card with a $19 AF which wouldn't be too hard to swallow. What I'm getting at, when rebuilding credit, it seems first you get crappy secured cards then in a couple of years if you are lucky you might be able to get better secured cards. I'd like to close my Cap1 secured card so I can get my money back and put it someplace that makes sense, but what are the chances Cap1 would give me anyplace close to the $1,500 I have on the secured card? What are the chances of getting a $300 limit? If I know I could get a $1,500 CL it might be worth it.

How bad would I hurt my credit if I close my Cap1 card now? I'm skipping all over with my thoughts because I really need my money back from the secured card and my first though was if I could get the newcomer's card which has a $0 AF, I could have a card for when I close the secured card so I still have a line of credit reporting. My thought there is even if they only give me $500, I wouldn't be in a hurry to close it even if I don't really use it. With the cash rewards on the other hand and the $39 AF, I'd be opening it with the plan of closing it in a year to avoid the AF.

I've also considered trying for the Barclay card for average credit and I might be able to get it on a recon from the information I've been given, but everyone I talk to says they would wait until I can get a better Barclay product.

I know it's sad, but I had to spend over a year working up to the point where I could get a BofA secured card and in order to be able to afford it, I'll need to cancel the Cap1 card and get my money back. I can't say that I really like Cap1 and their high end cards don't really excite me, I hear the Venture card isn't too bad, but I don't fly. The only reason I would app with them again is so I could have a credit line open when I close the secured card, but that's the only reason.

What would you do? I'd be happy with just the USBank card, but after that the focus is to build a higher credit score and get my limits up. It's nice to be able to have a card when on the road, but when you don't have it, you don't have it.


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Postby MemberSince99 » Fri May 17, 2013 6:39 am

It's hard to know for us to say anything. We have no idea what your scores AAoA baddies etc are and what may be holding you back. If you have a bunch of derogs, then the prime banks just are not going to be falling all over themselves to get your business right now.

Since you want to rebuild your credit I think closing Cap One would be a bad idea. You don't seem to be in a position that it would be smart to kill your oldest positive revolving tradeline. You could always ask if they could move to unsecure the card you have - not likely but all they can do is say no so there is nothing to lose.

Again I have NO idea what's holding you back here, you say you apply and get denied, what are the reasons they give you on the denials? I'd look at and try to address those.

When you are in rebuilding mode, you have to start somewhere. It's not a beautiful place unfortunately.

Just remember if you do go for another Cap One they do pull all three bureaus meaning 3 inquiries for one card that is never going to grow with you. If you really need that to get to the next level, then do it, because in a year it won't matter anyway if you can get better then. But keep that in mind. I have no idea what your overall situation is so I can't even give you much in the way of relevant answers.

s.jessica
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Postby s.jessica » Fri May 17, 2013 11:52 am

an ex friend screwed me over is what happened. We were supposed to purchase a vehicle together and I filled out the loan application and was approved but he wanted a different vehicle than what we agreed on so I backed out and he got this nice shiny new 4x4 truck which was promptly repossessed. I didn't even know anything about it for months until he called me and told me I owed the collections department and I needed to call them ASAP. He missed 3 payments, the finance company took the truck back, sold it at auction and he owed the difference between what it sold for and what he still owed on it which was $18,000. They threatened to sue him and he told me he kept telling them to get the money from his co-signer and they told him he didn't have a co-signer. Almost 6 months after the truck was sold at auction I get a collection letter from the finance company demanding I send $18,000 in certified funds via priority mail within 10 days of receipt of the letter to avoid being sued. This was the first contact this place had with me. I tried calling, but they just wanted their money and wouldn't accept any other answer. The gave me a number to call but I just got a recording and it said this office does not return calls concerning payment disputes. I called several times and kept getting the same recording. When I called the first lady back, she just got nasty with me, "If you're not calling to make payment, then what is the purpose of this call?"

Getting noplace fast, I called my lawyer and he wrote them a nice little letter. He requested they send proof I owed the money to his office and all they had was a loan application. Right after the application was approved, the bank was bought out by a different bank and the actual loan was taken on the new bank. That bank has since been bought out by Wells Fargo. I think that's how it went, I know a big bank bought out the bank the loan was made on.

What now shows on my credit report is "credit charge off - reported as uncollectable by creditor" The really bad thing is, in a recent denial letter from JCPenny, they said I had an $18,000 uncollectable debt and it wasn't dated so they had no idea how old it was. I'm still trying to figure out how this fell in the hands of Wells Fargo since I never applied for credit with them and the bank selling out is the only thing I can think of because the bank we talked to way back when isn't there anymore, it's now a different bank. Is there a way to get this completely off my reports?

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Postby MemberSince99 » Fri May 17, 2013 12:54 pm

That you will probably need legal help for. You can try to goodwill it with whoever put that on your report, but if you get nowhere with that, which is probably what will happen, your only option is to complain to the BBB and the FTC (probably a complete waste of time) and then find a good NACA attorney to take this on. Good luck, this system is not at all friendly to consumers.

s.jessica
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Postby s.jessica » Fri May 17, 2013 4:31 pm

Anyhow, I really regret giving Crap1 $900 of my money for a secured card. The story I have from another forum, I'm stuck in the garden for 3 to 5 years with that card and Crap1 keeps my money interest free that whole time. I had a chat with Crap1 and they said it's not likely they will add any more unsecured funds to that account, not a chance of the card graduating and they can't just refund part of my money. My only option would be to close the card and apply for a new card.

They did say I was pre approved for a newcomer's card with a $0 AF, I'm not crazy about the 3 hard pulls and when taking the chance might only get a $300 CL. With no AF, I could always just make a $10 purchase every few months and keep the card open for years. With the secured card I'm going to close it to get my money back and if not today and I'm stuck with the card for 5 years, I'm still closing it. I could always hope with $1,500 credit on a secured card for a year they would give me another $1,500 on a newcomer's card, then if it increased to $2,000 after 6 months, I would be very happy.

I would avoid Crap1 at all costs if I could, but they seem to be my only hope at this point. Credit Karma has my score at 647, but we all know it's a total fake and I don't want to pay to see a real score. A little over 6 months ago Ally Bank denied me an online account because they said my score was 550 and I don't think it could have jumped 100 points in 6 months.

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FastSRT8
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Postby FastSRT8 » Fri May 17, 2013 4:36 pm

Cap one sounds like a scary company to deal with. Stay far away.
Carpe diem quam minimum credula postero!

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Postby MemberSince99 » Fri May 17, 2013 4:48 pm

Try a local Credit Union they may be more generous.

BofA offers a secured card that will graduate. I'd say in a way you have little to lose by apping for the Crap One no annual fee card. An extra credit line will boost your score, and the sting of the inquiries will quickly fade.

I suggest saving what you need for the BofA secured I think 99 bucks can get you 500 and after a year it can unsecure and you can get a CLI. Then once you get that drop the Cap One secured and keep the unsecured and BofA cards for a year. I bet at that time your score will be better and you can try for better cards. GE is one you can try for too - even if you only get store cards they will help your cause and those cards do grow.

In terms of that whole legal mess I think only a lawyer who specializes in the field can really help you there.



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