Author Topic: Credit Card Question  (Read 4280 times)

joshbredmond

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Credit Card Question
« on: November 09, 2014, 02:00:43 PM »
I have a question about one of my credit cards. Growing up I know that the credit score is such a big deal so I have always made a conscious effort to never mess it up. I have 4 credit cards and my first ever is a secured capital one $200 limit Card. Capital One says theres no promoting it to a card with with perks and to up the limit I have to give them $100 for every $100 I want added up to $3,600 if this is the case this cards useless to me with only $200 limit. I want to cancel it and get rid of it but hearing that canceling your oldest card account will impact you score. Should I do it? Or what should I do? I have only had the card for 3 years.

I have 3 other cards 2 with a $2,500 limit and 1 $3,600 limit. I like these cause of there limit and they all have cash back rewards. My capital one doesn't

GizmoTX

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Re: Credit Card Question
« Reply #1 on: November 09, 2014, 02:24:03 PM »
Cancel it; it's so small that it shouldn't have any effect on your score. A secured card is more like a debit card anyway.

frugaliknowit

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Re: Credit Card Question
« Reply #2 on: November 09, 2014, 02:31:37 PM »
If you are not applying for any loans soon, go ahead and cancel it.  You might get dinged for it at some point, but in the long run it shouldn't matter.

joshbredmond

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Re: Credit Card Question
« Reply #3 on: November 09, 2014, 03:24:32 PM »
Great thanks I appreciate it

chucklesmcgee

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Re: Credit Card Question
« Reply #4 on: November 09, 2014, 03:30:01 PM »
There's no annual fee, so why cancel it? The age of your oldest account is a big factor in your score as is your average account age. Not that'll be an enormous hit, but long term it's better to keep it.

Throw it in your dresser drawer and take it out once a year to buy something tiny (50 cent amazon giftcard?).

Calvawt

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Re: Credit Card Question
« Reply #5 on: November 09, 2014, 09:06:46 PM »
the credit history from that card will last at least 7 years once you close it.  Unless you have very low limits on the other cards, you should not see any effect on your score for closing it.

Goldielocks

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Re: Credit Card Question
« Reply #6 on: November 09, 2014, 09:27:39 PM »
There's no annual fee, so why cancel it? The age of your oldest account is a big factor in your score as is your average account age. Not that'll be an enormous hit, but long term it's better to keep it.

Throw it in your dresser drawer and take it out once a year to buy something tiny (50 cent amazon giftcard?).

Most secured cards do have a fee, sometimes a very large one.

Cancel, it has served its purpose of giving you 6 mos to 1 year of perfect credit, (with your diligence) so you can move to the standard card offers.

ChiVolter

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Re: Credit Card Question
« Reply #7 on: November 10, 2014, 12:13:18 PM »
In most cases the front-line customer service agents are not able to do very much. Contact the Capital One Executive Office. They will assign a person to assist you in the review of your account and provide some options.

I suggest this only if you have been a long-time customer in good standing.

I have been able to get a credit line increase, rewards upgrade, and annual fee adjustments with the Executive Office when the call center and automated online system said 'no way.' But I am sure my good history was a key factor in them being able to help me.

If they really are that restrictive with the low-limit secured cards they may have you apply for one of the higher-level accounts. But make sure you choose the one with the rewards and fees that are best for you if you are looking to maximize your rewards.

Left

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Re: Credit Card Question
« Reply #8 on: November 10, 2014, 12:22:22 PM »
discover card does well for you I think, no fee and it auto increases limit to a point ($15k for me, after this I've been asking them to increase it myself yearly). You don't have to use it but having it to "age" credit and it auto-increasing is nice, and it gives a free credit score too. Other cards do the same but I like the customer support with discover card (i've only needed it once but that one time earned them a loyal follower).

but if you are youngish-new starting out, it might be better to work on aging a card then next year get some rewards card, instead of getting at it now unless you spend a lot each year that the few hundred in rewards would make a big  difference. Or just switch capital one to a no fee card then stop using it if credit limit isn't high. You don't get dinged if you close the card, the ding is when you close the account. Changing the card avoids this, or at least I think it does.

a side note, if you prefer those other 3 cards because of the credit limit, you might want to look at your spending. Just making a note that they aren't high credit limits and if you are spending "a lot" proportionally to credit, it dings the score as well. You can kind of get around this too by paying them off early. Like pay them off weekly and it resets the credit limit back to full. You could even "preload" the credit cards to increase spending limit (if you have the extra cash). This is how stores credit your charges to card when you return sometime. This is done by "overpaying" them on a statement and the money stays there as credit against future charges (still earns reward points but you normally get better returns just investing it). The one time I "preloaded" a card was when I went overseas since I wouldn't be back to pay monthly (I don't use autopay).
« Last Edit: November 10, 2014, 12:33:56 PM by eyem »