Should I close my MasterCard?

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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gpmabob99
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Should I close my MasterCard?

Postby gpmabob99 » Sat Jan 05, 2013 5:33 pm

Hi,

I just joined this site. Among other credit lines, I've had a CapitalOne Platinum MasterCard for about three or four years with a $500 limit. It has never increased nor will customer service offer me any useful explanations when I call. I've read on various other threads relating to this same card that the problem persists and is not worth arguing with them about.

I've never closed an account before and I am 22 years old with only four years credit history. I'm sure the card has helped me in some minimal way at the start of my journey, but as I am becoming more established, I'm faced with this dilemma: I've never closed an account before, nor do I intend to do so with this card per se. I also am not fully educated on the downfalls of doing so, or what the benefit would be to continue using it versus leaving it sockdrawered.

Also, is it at all possible down the line to upgrade the card? Perhaps within the next decade I will apply for a Venture Rewards card. I never wish to hold more than three or four at a time. What would be the best decision for me to make?
Credit Lines:

Wells Fargo Platinum Rewards Visa 4.8k 6/09)
CapitalOne Platinum MasterCard $1000 (2/10)
American Express Green Card NPSL (11/12)
Wells Fargo Personal Line of Credit 5k (6/12)


RewardHop
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Postby RewardHop » Sat Jan 05, 2013 6:07 pm

1. Is there an annual fee or anything of that sort?
2. How many other credit cards do you have? oldest besides this Cap One?
[size=60]
Amex BCE: 3% grocery, 2% gas
Bank of America Better Balance Rewards MC: $25/quarter bonus
Barclaycard Rewards Visa Signature: 2% gas, groceries, utilities
Capital One Quicksilver Visa Signature: 1.5% everything
Chase Freedom Visa Signature: 5% rotating
Citi Forward Visa: 5% restaurants/fastfood, movie theaters, amazon.com
Discover It: 5% rotating
SallieMae MC: 5% Groceries, Gas, Amazon
US Bank Cash+ Visa Signature: 5% electronic stores, restaurants
Sock Drawered: Chase Sapphire, Chase Amazon[/size]

gpmabob99
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Postby gpmabob99 » Sun Jan 06, 2013 9:52 am

There is no annual fee. And I just created my signature for this site so my cards and credit lines should appear below after I submit this post. My Wells Fargo Platinum Visa I've had since I opened it as my first credit line at the age of 18 in June 2009, so it's about four years old. I started with a $1000 limit then and it has steadily increased to its current 3.5k limit, also being automatically upgraded to a Rewards card.
Credit Lines:



Wells Fargo Platinum Rewards Visa 4.8k 6/09)

CapitalOne Platinum MasterCard $1000 (2/10)

American Express Green Card NPSL (11/12)

Wells Fargo Personal Line of Credit 5k (6/12)

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djrez4
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Postby djrez4 » Sun Jan 06, 2013 10:46 am

With no annual fee, stick it in the sock drawer until they close it. It will remain on your reports and count toward average age for up to ten years after they close it.
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]
[/RIGHT]

gpmabob99
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Postby gpmabob99 » Sun Jan 06, 2013 11:36 am

Thank you. So it reflects better to allow the issuer to close the account due to non usage as opposed to opting in to close it prematurely? That is to say, the latter erases your credit history while the former maintains the average for ten years thereafter?
Credit Lines:



Wells Fargo Platinum Rewards Visa 4.8k 6/09)

CapitalOne Platinum MasterCard $1000 (2/10)

American Express Green Card NPSL (11/12)

Wells Fargo Personal Line of Credit 5k (6/12)

RewardHop
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Location: USA

Postby RewardHop » Sun Jan 06, 2013 1:43 pm

You can prevent them from closing it by just making a tiny charge on it every 6 months or heck even 12 months in some cases. I would definitely do this on your oldest card.

gpmabob99 wrote:Thank you. So it reflects better to allow the issuer to close the account due to non usage as opposed to opting in to close it prematurely? That is to say, the latter erases your credit history while the former maintains the average for ten years thereafter?


In both cases, it will stay on the credit report for many years.
Jeremy M. Simon: Canceled credit cards don't leave your credit report quickly
[size=60]

Amex BCE: 3% grocery, 2% gas

Bank of America Better Balance Rewards MC: $25/quarter bonus

Barclaycard Rewards Visa Signature: 2% gas, groceries, utilities

Capital One Quicksilver Visa Signature: 1.5% everything

Chase Freedom Visa Signature: 5% rotating

Citi Forward Visa: 5% restaurants/fastfood, movie theaters, amazon.com

Discover It: 5% rotating

SallieMae MC: 5% Groceries, Gas, Amazon

US Bank Cash+ Visa Signature: 5% electronic stores, restaurants

Sock Drawered: Chase Sapphire, Chase Amazon[/size]

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djrez4
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Postby djrez4 » Sun Jan 06, 2013 3:09 pm

gpmabob99 wrote:Thank you. So it reflects better to allow the issuer to close the account due to non usage as opposed to opting in to close it prematurely? That is to say, the latter erases your credit history while the former maintains the average for ten years thereafter?


Neither erases the history immediately. Your history will report for, at most, 10 years after the account is closed, whether you close it or the lender does. There is no difference in scoring for a lender-closed vs. a borrower-closed account.
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]

[/RIGHT]

MemberSince99
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Postby MemberSince99 » Sun Jan 06, 2013 3:52 pm

It is extremely unlikely they will "upgrade" it, though possible, I'm just talking straight mathematical odds, and the odds say don't bet a cent on that.

It doesn't matter in terms of your score who closes it, it may matter to some analyst who sees they closed your card and asks you why. Any reasonable explanation at all will do.

The "best" decision you can make is if your credit profile, needs and income justify it, get a few better cards, and once they are established, dump the Cap One card. Only you know if that makes sense for you.

Robrus1
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Postby Robrus1 » Sun Jan 06, 2013 9:17 pm

Put it in a drawer and apply for the card you want, assuming you've had good payment history, etc. A word of advice, no more Capital One.
Amex Platinum
Amex BCP 21K
Amex SPG 5K
Barclaycard Arrival Plus WEMC 5K
Chase Sapphire Preferred 23.5K
Credit Union 10K
Discover IT 7.75K

TheLethargicAge
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Postby TheLethargicAge » Mon Jan 07, 2013 11:00 am

Is it the only MasterCard you have? If so, then don't close it. You never know when you might find yourself at a place that only takes MC (Sam's Club, the DMV in Miami, FL...I'm sure there's a few more)
Blue Cash Preferred ($24K), Costco TrueEarnings ($8K), Better Balance Rewards ($6K), CashForward ($15K), Sallie Mae Rewards ($10K), Quicksilver ($17K), AARP Rewards ($15K), Freedom ($15K), Double Cash ($16.5K), It ($28.5K), Fidelity Investment Rewards ($18K), Cash+ ($11K)



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