Advice please!

For just about anything you want to get off your chest about credit cards.
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vjane89
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Advice please!

Postby vjane89 » Mon Mar 10, 2014 12:13 am

When I was in college, my credit report got dinged because PG&E charged me a $7 fee to close my account and they never gave me any type of notice of this charge. I disputed it, but nothing came of it. It is what it is, so now I have this negative association on my credit report. As a result I was never able to get approved for a credit card.

2 years ago I got a secured Capital One cc to build my credit. A few months ago, I applied for a Chase Freedom card and was approved (yay!), but for only $500.

I am going to cancel my secured Capital One credit card at the end of this month. Yes, I know it will have a negative impact on my credit score, but I hate paying the yearly fee.

A few days ago I decided to apply for a Discover cc and was denied due to "serious delinquency." I assume they are referring to my $7 fee from years ago because I pay my other cc's in full every month…I never carry a balance.

Here is my question: Should I attempt to apply for another credit card before I cancel my Capital One card and risk getting denied for another card, or should I just stick with what I have (which will only be the Chase Freedom card after I cancel Capital One)? If you think I should just keep my one credit card for now, how long should I wait until I apply for another one?

Thanks in advance for the advice/help. The credit card world is just so uncertain sometimes!


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otter
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Postby otter » Mon Mar 10, 2014 4:30 am

vjane89 wrote:I am going to cancel my secured Capital One credit card at the end of this month. Yes, I know it will have a negative impact on my credit score, but I hate paying the yearly fee.


It will only affect your credit score negatively if it affects your utilization.

vjane89 wrote:A few days ago I decided to apply for a Discover cc and was denied due to "serious delinquency." I assume they are referring to my $7 fee from years ago because I pay my other cc's in full every month…I never carry a balance.


Don't assume anything when you can know for sure. You were denied credit, you have the right to check your credit report for free to see why. I've had other people's accounts on my report before. I've also had "unreturned library books" on my credit report before.

vjane89 wrote:Here is my question: Should I attempt to apply for another credit card before I cancel my Capital One card and risk getting denied for another card, or should I just stick with what I have (which will only be the Chase Freedom card after I cancel Capital One)? If you think I should just keep my one credit card for now, how long should I wait until I apply for another one?

I wouldn't apply for any cards until you see what's on your report. If it's just the $7 charge, I would try to get it taken off the report.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

MemberSince99
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Postby MemberSince99 » Mon Mar 10, 2014 6:58 am

This is a great example of why our system is so totally f'd up. First of all charging you 7 dollars to turn off service? Please. What next, charge you for the oxygen consumed by their rep as they set your account to close in the system too? Or maybe that was what they charged you for.


I'd like to see the system changed so that when companies like PG&E do this, and say fail to return your deposit because they "forgot" or whatever, you could do the same thing to THEIR corporate credit, and sic vulture agencies on THEM as well. What's the difference? Actually I'd just settle for making it harder for them to do things like this in the first place - it's totally ridiculous.


Anyway, I think most of us who are reasonable agree our system is one of total abuse to consumers and that's another topic altogether. As far as other cards, obviously Discover isn't in the cards (bad pun) right now. I'm a bit surprised Chase approved but the 500 limit is likely a direct result of the delinquency but you did well to get in.


I would say get one other prime card (one without an annual fee from a prime lender) before you close Cap One. You could apply now, you just never know who might let you in. We can all sit here and try to predict but none of us to my knowledge is Nostradamus so none of us really knows for sure. (Honestly if I could predict that, I'd use my powers to predict the winning lottery numbers and escape the insanity of working for the hell known as Corporate America forever, instead of telling you which card to apply for). So hang onto it and bite the fee for now.


Work to try to get that 7 dollar delinquency removed. Then you'll find yourself in great shape. Also it will come off in time. Again I think the whole thing is ridiculous but the system is set up for corporate America to do whatever they please and the rest of us to just deal with the results of that, and this is what we get. They buy our government fair and square so I guess they should have the right to run it for their own profit and ROI.

takeshi
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Postby takeshi » Mon Mar 10, 2014 7:21 am

otter wrote:I wouldn't apply for any cards until you see what's on your report. If it's just the $7 charge, I would try to get it taken off the report.

+1 It's clear that the derog is holding the OP back and the OP needs to work to address it.

vjane89
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Postby vjane89 » Wed Mar 12, 2014 10:10 pm

Thanks for all the good advice! Isn't it ridiculous that I have to go through all this trouble because of a $7 charge that I was never given notice of!? OH WELL!

The last time I was in my bank (WF) they told me I was approved for a credit card if I wanted one. I refused it because I was sure hoping I would be able to get a Discover cc. I think I will just head back to WF and get that cc so that I can build my credit.

linuxmachine
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Postby linuxmachine » Wed Mar 12, 2014 10:16 pm

You should really check your credit report. It's free and you can view it online immediately. No reason not to. Annualcreditreport.com

PowerMan572
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Postby PowerMan572 » Thu Mar 13, 2014 1:01 am

I had a Capital One secured credit card as well. I closed it and a few days later applied for the Venture card. To my surprise, I was approved for $5k! You may want to think about going for a Cap1 card as long as you were good with Cap1 the entire time you had your secured card with them.

vjane89
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Postby vjane89 » Thu Mar 13, 2014 2:42 pm

I considered applying for Capital One, but I didn't want to ruin my chances of getting the WF cc if I get denied for the Capital One (and I just got denied for Discover a week or so ago). How much of an impact would another denial 'cost' me if I happened to get denied by Capital One?

PowerMan572
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Postby PowerMan572 » Thu Mar 13, 2014 2:47 pm

vjane89 wrote:I considered applying for Capital One, but I didn't want to ruin my chances of getting the WF cc if I get denied for the Capital One (and I just got denied for Discover a week or so ago). How much of an impact would another denial 'cost' me if I happened to get denied by Capital One?


I had my Capital One secured card just as long as you. As long as you paid every single month and paid in full or carried very little balance, I would say give it a shot. You've proved to them that you can handle an unsecured card now. I was utterly shocked when they came back with a $5k limit and my secured card was only $451.

I too had a denial on my card when I applied. I first applied for Barclaycard and got approved. I then approved for the Marriott card and got declined. I then applied for Cap1 and got approved :-)

As long as you've been good since you've had that secured card, I would say go for it.



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