Is this a good time to close my CapOne?

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
9 posts
Drudai
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Is this a good time to close my CapOne?

Postby Drudai » Sat Oct 05, 2013 7:24 pm

Long explanation...

So, 4-5 months ago, my scam auto insurance company claimed I owed them $90 for cancelling my policy early, and I tried disputing it with the BBB after discovering a lot of people had been scammed out of this false fee, however they sent it to a bill collection agency in the meantime. And of course, the bill collectors they use are also a little shady (google IC Systems complaints/BBB), and called me relentlessly, even though I was trying to explain my side of everything, WHY I cancelled the insurance (they don't pay out if you get into a wreck, their coverage is awful, and on top of all that my truck was in and out of the shop to the point that I drove it maybe once a month). It takes forever to even talk to someone who can handle the situation, because I used an insurance agency who found customers for my insurance company. If I wanted to talk to the company, they would tell me they don't handle these things and redirect me to the agency. And the agency wouldn't help me because they sent it to the collections. And the collections couldn't explain to me why my agency was charging me, because they were just after that final bill.

But last month, the collection popped up on my alerts finally and I was so sick of dealing with all this that I just paid the collection agency. It is still on my report though, I didn't ask for them to remove it (even if they could) only because I was so upset by all this crap-o-la.

My credit report took a lovely 40 point hit, that I am hoping it recovers from as it is "paid", even if it's still reporting for another 7 years. :(

And now I'm not going to even bother with worrying about my score, or running my credit for anything (cards, loans, phone, etc) only because I don't want to deal with rejection. So during this down time, I'm wondering, should I go ahead and close my CapOne?

It is my oldest card, but I haven't used it in 2 months, only because it's my smallest limit and I hate the interest. It's also secured so I could get my deposit back.

TLDR; score is already low, should I take another hit while I am down for the count?

ALSO, be wary of your insurance companies... Just because your friend refers you, doesn't mean it's legit. :/
[size=60]
Chase Freedom: $800
Chase Slate: $500
Discover It: $2000
Sears: $2000
US Bank: $500
AMEX BCE: $2000
[/size]


Midori
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Postby Midori » Sat Oct 05, 2013 8:33 pm

"Hate the interest" or "hate the annual fee"?

One of them, you have control over. The other, you don't.

Your available credit would drop from $5400 to $5100, so it's not that big a drop in the great scheme of things. But you'd have to be clear in your mind as to what the productive result of canceling that card would be. If it's just the interest, not carrying a balance is the simpler way to avoid it than canceling the card itself. If it's an annual fee, go ahead and drop it. Is your biggest desire to get that $300 back?

If you have any military connections, USAA is pretty decent.

Drudai
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Postby Drudai » Sun Oct 06, 2013 9:50 am

Well, I hate both, yes. I mentioned the interest because I like my promotional periods on all my cards that are 0% for another year+. I'd rather use those in the off chance that I can't pay off my cards for whatever reason vs. possibly having to pay on CapOne. Also hate the low limit that will never be raised... and there's no point to use it as I don't get rewards. (Only use my cards for gas and when I go out to eat. Although the 5% quarters have ended (boooo), 1% is better than nothing.

AAoA wise, I'm nervous to take such a hit. But I'd rather not pay $35 in January just because it's an open card.

Sounds like I've already convinced myself, tbh. Just curious if it would truly hurt me too much.
[size=60]

Chase Freedom: $800

Chase Slate: $500

Discover It: $2000

Sears: $2000

US Bank: $500

AMEX BCE: $2000

[/size]

Midori
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Location: TX

Postby Midori » Sun Oct 06, 2013 4:38 pm

If it's the AAoA that you're worried about, it has another 10 years of reporting before it drops off. So, say you got it five years ago... it will continue to age, but ten years from closure, you'll lose a 15-year-old card, even though it's been closed for 10 of those 15 years.

The biggest ding to your AAoA, according to my understanding, happens when you apply for a new card, rather than when you close an old card.

Drudai
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Joined: Sun Dec 16, 2012 8:25 pm
Location: Illinois

Postby Drudai » Sun Oct 06, 2013 8:58 pm

Hm, good to know. Well I don't plan to apply for anything new for a long while, so I think I'll call up CapOne tomorrow and close it.
So looking forward to talking to customer service, ... not.
[size=60]

Chase Freedom: $800

Chase Slate: $500

Discover It: $2000

Sears: $2000

US Bank: $500

AMEX BCE: $2000

[/size]

takeshi
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Postby takeshi » Mon Oct 07, 2013 8:47 am

Drudai wrote:Also hate the low limit that will never be raised...

You never know unless you ask. Some have been able to get their CO secured cards converted.

Drudai
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Joined: Sun Dec 16, 2012 8:25 pm
Location: Illinois

Postby Drudai » Mon Oct 07, 2013 9:41 am

I've received one auto CLI from them, at my 1 year mark. I heard that is a pretty outstanding thing to happen. I suppose I will discuss that when I call them.
[size=60]

Chase Freedom: $800

Chase Slate: $500

Discover It: $2000

Sears: $2000

US Bank: $500

AMEX BCE: $2000

[/size]

Drudai
Platinum Member
Platinum Member
 
Posts: 55
Joined: Sun Dec 16, 2012 8:25 pm
Location: Illinois

Postby Drudai » Mon Oct 07, 2013 9:57 am

Pft, I got "nope nope nope" when I asked. They did check to see if they could "waive" my annual fee but said there wasn't any offers for me.

I am a little shocked they aren't more aggressive to keeping customers, but I suppose they think they're doing just fine with or without small fishes like me.
[size=60]

Chase Freedom: $800

Chase Slate: $500

Discover It: $2000

Sears: $2000

US Bank: $500

AMEX BCE: $2000

[/size]

PallasAthena
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Postby PallasAthena » Fri Oct 11, 2013 3:09 pm

I, too, am surprised that Capital One isn't more aggressive about keeping customers. I've been with them since 2007 and my "big" card has a credit line of $3250 and they haven't increased that in years. That one is a Cap1 Platinum that got converted to a Quick Silver (much to my surprise). I keep getting turned down when I ask for a line of credit increase.
In 2011, that card was upgraded to a Venture One. Stupid me didn't know what that was at the time and I told them to change it back to the Platinum so I can keep getting cash back. :-( They did... and after I found out what a Venture One was, I called them back but they said the card cannot be changed back. Now, it just got changed to a Quick Silver.
My other Cap1 card (the "little one") has a credit line of $1500. It used to be an Orchard Bank card that was converted over to a Cap1 Quick Silver One with an annual fee of $19. They won't merge my two accounts, nor would they give me a credit line. I am hoping that this one can turn into a Venture One.
Or, maybe I should cancel it? I mean my other cards (Priceline rewards Visa by Barclay bank gives me a credit line of $6500, as does my Wells Fargo Platinum) have much higher lines of credit.
I'm thinking that maybe Capital One has served its purpose? I got it a few months after my chapter 7 bankruptcy was discharged.
Dec '16 Fico: 800+
Ch 7 BK in '06, finally dropped off in '16
2 mortgages
paid off car
$0 CC debt (Disc, Citi, and WF Amex)



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