Cancel Capital One credit card account or not?

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koontek
 
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Cancel Capital One credit card account or not?

Postby koontek » Tue Mar 01, 2011 3:37 pm

Hey Guys,
Should I cancel my Capital One Credit card? This is my first Credit card so its been open since OCT 9, 2001. But has a lower limit and a apr of 20.99 percent! So i have not used it in years! but i heard it was good to leave it open since its been open so long ? is this true? what is best for my credit history score? close it or leave it open? Thanks guys!


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Blue Moon
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Postby Blue Moon » Tue Mar 01, 2011 8:11 pm

If you don't have an annual fee, leave it open and use it for a small purchase once every few months. Closing it will shorten your credit history. Some people say that you should never close a credit card. I wouldn't necessarily go that far, although I think you need to have a good reason to close one, but I do say to never close your oldest card. Three factors come into play - 1. It's your oldest revolving credit account. 2. It weights your average credit length in your favor. 3. Although it may have a low limit, it is still giving you additional credit, which will benefit your debt to credit ratio. If you close it, you could end up hurting your credit score.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Fri Mar 04, 2011 10:23 pm

I would not cancel my Capital One credit card if it had a 10 year account history and was my first card. Going further, I would recommend using it once in a while. If you haven't used it in years than you might risk having the account canceled involuntarily and you don't want that to happen. Take it out and dust it off once in a while by making a purchase.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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sdfinch
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Postby sdfinch » Thu Mar 17, 2011 2:49 pm

Do not cancel it ifthat is your first card and it's still open. That card is where your credit history begins. If you close it, your history picks up with the next card you opened afterwards. 15% of your credit score is based on history. I would use that card so they do not close it on you. That would be bad also !

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Close My Capital One?

Postby DarkLabel » Fri Jul 22, 2011 12:07 am

Hello all!

I applied about 1 month ago for a Capital One Journey card. I was accepted with a 500$ credit limit. However, I recently was accepted for a Chase Freedom card for about $1,000 CL.

I already have a Citi Forward card and a Macy's Credit Account (I get a discount for working there and pay in full so I don't wish to close the account).

I was wondering should I keep the Capital One open just to look good or close it now to get it out of the way? I don't see myself ever using that card honestly.

Meltdownblitz
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Postby Meltdownblitz » Fri Jul 22, 2011 10:22 am

DarkLabel wrote:Hello all!

I applied about 1 month ago for a Capital One Journey card. I was accepted with a 500$ credit limit. However, I recently was accepted for a Chase Freedom card for about $1,000 CL.

I already have a Citi Forward card and a Macy's Credit Account (I get a discount for working there and pay in full so I don't wish to close the account).

I was wondering should I keep the Capital One open just to look good or close it now to get it out of the way? I don't see myself ever using that card honestly.


If there is an annual fee close it, if not leave it open even if you don't use it.

DarkLabel
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Postby DarkLabel » Fri Jul 22, 2011 1:44 pm

Meltdownblitz wrote:If there is an annual fee close it, if not leave it open even if you don't use it.


Yeah, I'll probably just leave it open and make the odd purchase of a cup of coffee every month or so.

And the rewards are decent. 1% of every purchase and 25% of the rewards I earn. Can be my gas card whenever my Chase Freedom isn't in the gas category.

HipHopSays
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Should I Close CapOne ....Which Refuses To Do a Credit Limit Increase?

Postby HipHopSays » Tue Jul 26, 2011 6:05 pm

Okay, so I am starting to think I should close my Capital One Visa even though it's the longest opened revolving account I have. For undergrad I had a Discover Card which was clearly more than I was ready to handle.....often ran to the hilt of my limit, paid late (a bit), and basically did not respect the 'score'. Needless to say by 2000 I realized the damage I had done with one card that had been closed by that time. Capital One bought the debt which is how I ended up with the Visa card. The credit limit was set at $1,000 and over the intervening ten years I have paid off the initial debt I owed Discover ($2800ish) and have been a lot better at my credit stewardship -- no late payments, better utilization rate, etc.

In 2008 I requested a credit limit increase and was told they couldn't increase my limit but that I should apply for a CapitalOne Mastercard...which I did and was approved for with a $1,000 limit. Six months later, I got an increase to $4,000 and suspect I will get an increase sometime this fall. At the top of the financial crisis I called CapitalOne about possibly lowering the interest rate on my Visa which is currently 20.99% variable rate. I was told nope they couldn't do it. I called and asked again last holiday season about lowering my interest rate, and again was told no go. I have been of the mindset that it's been an issue with my credit score, but because I am about to finish up grad school

I recently picked up my scores from the major bureaus and while there is room to grow with my scores they are not basement levels -- I am around the high 600s and low 700s.

I recently picked up an Amex Blue Everyday which I probably will make my credit backbone. I asked CapOne (Visa) earlier today for another increase only to be rejected again. I am starting to question keeping it open as I rarely use it (currently my balance is $4.95) and it has such a high APR particularly for the utilization rate I am trying to maintain -- around 10-15 percent. Is this just a CapOne thing of not doing a CLI? Am I missing the thing CapOne looks for in customer? Has anyone else had a similar issue with CapOne?

While CapOne (Visa) has shown me they 'value' me as a customer ( I went from a 'classic' card to a 'gold' and to the 'platinum' I have now).....I am thinking that I would be better served to pick up a student visa from a major bank before I finish grad school as I suspect the bank card would 'value' me accordingly as my income increases and my debt (mostly school loans) decreases.

unhappycustomer
 
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Postby unhappycustomer » Tue Jul 26, 2011 7:01 pm

I am experiencing similar concerns but with my Bank of America card. If you people could give me your expert opinions it would be much appreciated! http://creditcardforum.com/finance-charges-apr-compare/2934-cancel-bank-america-credit-card.html

DarkLabel
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Postby DarkLabel » Wed Jul 27, 2011 10:58 am

HipHopSays wrote:Okay, so I am starting to think I should close my Capital One Visa even though it's the longest opened revolving account I have. For undergrad I had a Discover Card which was clearly more than I was ready to handle.....often ran to the hilt of my limit, paid late (a bit), and basically did not respect the 'score'. Needless to say by 2000 I realized the damage I had done with one card that had been closed by that time. Capital One bought the debt which is how I ended up with the Visa card. The credit limit was set at $1,000 and over the intervening ten years I have paid off the initial debt I owed Discover ($2800ish) and have been a lot better at my credit stewardship -- no late payments, better utilization rate, etc.

In 2008 I requested a credit limit increase and was told they couldn't increase my limit but that I should apply for a CapitalOne Mastercard...which I did and was approved for with a $1,000 limit. Six months later, I got an increase to $4,000 and suspect I will get an increase sometime this fall. At the top of the financial crisis I called CapitalOne about possibly lowering the interest rate on my Visa which is currently 20.99% variable rate. I was told nope they couldn't do it. I called and asked again last holiday season about lowering my interest rate, and again was told no go. I have been of the mindset that it's been an issue with my credit score, but because I am about to finish up grad school

I recently picked up my scores from the major bureaus and while there is room to grow with my scores they are not basement levels -- I am around the high 600s and low 700s.

I recently picked up an Amex Blue Everyday which I probably will make my credit backbone. I asked CapOne (Visa) earlier today for another increase only to be rejected again. I am starting to question keeping it open as I rarely use it (currently my balance is $4.95) and it has such a high APR particularly for the utilization rate I am trying to maintain -- around 10-15 percent. Is this just a CapOne thing of not doing a CLI? Am I missing the thing CapOne looks for in customer? Has anyone else had a similar issue with CapOne?

While CapOne (Visa) has shown me they 'value' me as a customer ( I went from a 'classic' card to a 'gold' and to the 'platinum' I have now).....I am thinking that I would be better served to pick up a student visa from a major bank before I finish grad school as I suspect the bank card would 'value' me accordingly as my income increases and my debt (mostly school loans) decreases.


They don't really give CLI and they typically don't lower the APR at all.

Aside from the Venture card, most of CapOne cards is for those with less than ideal credit. As said before, if there is no annual fee, just leave it open, pay off that tiny balance (no use in paying $2 in interest, which I believe is the least they charge) and just sock it. If you don't want it anymore, instead of calling and canceling it, just put it out of mind and check on it a few times to make sure no funny business is going on. Than just let it close out on its own.



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