When can I cancel my secured card and get my money back?

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s.jessica
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When can I cancel my secured card and get my money back?

Postby s.jessica » Fri Jul 05, 2013 9:17 am

I had to get a Cap1 secured card a little over a year ago because it was the best card I could get at the time. They gave me a $200 CL for a $49 deposit, I added some of my own funds and after 6 months they gave me a $300 CLI. Currently I have a $1,500 CL on the card with $1,049 of it being my money.

About 3 months after getting this card I got a US Bank card which has now graduated and has a $500 CL. I was just recently approved for a Cap1 newcomer's card with a $500 limit. CK shows my credit score as 640 but that's perfectly useless information.

Cap1 gave me a card when I couldn't even get a BofA secured card, but the part I hate is they won't ever graduate a secured card. You basically have to cancel it and apply for a different card and they get to keep your security deposit until you close the card.

What I need to know is (1) how long do I need to wait to close my secured card and (2) how much will it effect my credit score? I could really use my money back. I know if I cancel my secured card I could get another cap1 card with better terms if that helps, but I also know nobody here would agree with that. Basically I got in with Ally Bank because their debit card is by far better than any credit card I've had and with small limits, my cards report as maxed out every month, so now I just use them enough to keep them open and that's it.


MemberSince99
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Postby MemberSince99 » Fri Jul 05, 2013 11:02 am

I agree with you doing whatever is best for you. That's how I operate. And even the FICO fanatics do it, despite their fervent devotion to "gardening" they are stepping out of the precious garden all the time for things. So do whatever is best for you regardless of what people may say - their advice is worth exactly what you paid for it.

Having said that, I'd be sure I actually got these better cards BEFORE you close the secured account. Once you do, by all means close it and get your money back.

Hard to say how much it will effect your score, it depends on how old it is. It's obviously your oldest revolving tradeline so the new inquiries and accounts could drop your score a bit just from that, and closing the secured will probably drop it a bit more. But if you hang in there your score will go up as the new accounts age. Unfortunately one of them is Cap One and we all know how well that will ever grow with you. So you're still in the boat of really needing to get a better card at some point. But it's a marathon not a sprint.

Anyway I just realized you already have 2 cap one cards, so you can't go for another before closing the secured.

I don't know, do you REALLY want another card with those guys? You know it will never grow. It's simply a means to an end - to getting better cards with a better lender. It has no future.

I guess if I was you, and I really needed the money, I'd close the secured card, and just let the two you have age for 6 months to a year and check your scores at that time, and maybe you can venture into primeville then.

I'm still not sure why you haven't considered a GE backed card - they will grow with you unlike Cap One and it's one hard pull instead of 3 for a puny limit that will NEVER EVER increase. That's what helped me get over the hump to 5k is a GE backed card. A Cap One card likely never will. Up to you though.



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