Thread: Should I close my Cap One?

Newbie here,

Earlier this year (March '12) I opened my first credit card/credit line with Capital One secured card, put down a $49 deposit and received a $200 CL. Decent and I was excited. The annual fee of course was $39, but heck anyone giving me credit was amazing. (I was 19 at the time.)

When I hit my 6 month mark, all good payments, they raised my CL to $300 and I applied for a cc through my bank, 5/3, and received a $300 CL. It has a lower 18% and no annual fee.

With this card, and knowing that my credit score is an average 702, I was wondering if I should close my crummy Capital One 24% card and get my deposit back? I really don't want to pay another $39 annual fee when I know I can get a better deal with my current bank.

Will it hurt my credit score to close it out, even if I wait til March, a little before my annual fee is due?

Keep it for a little while longer. While your credit score is fine, you still have very little credit history. If I was in your shoes, I would pay the $39, pass your one-year anniversary, apply for better cards, get them in my hands, and then think about closing the Capital One secured card. Your $300 5/3 Bank card is nice, but I wouldn't cut my credit line in half just to avoid a fee, and before I knew I looked good to other card issuers.

I agree with Midori

Thanks guys.