ok, I have this "Platinum" Capital One card I got a while back...$300 credit limit...they never raised it after 2 years, they only sent me 2 other "Preferred Platinum" cards, each also with $300 limits...pathetic, I know...what's worse is that the oldest card has a $59 annual fee, and each of the two newer ones have a $29 annual fee each.
Now, I just recently got approved for Providian/Washington Mutual card with a $1000 credit limit, with NO annual fee...I'm paying off all the cards, and I should have all my credit cards down to zero by the end of the month.
Once they're all at zero, should I cancel the $59 annual fee Capital One card? Should I cancel all 3 of the Cap. Ones and just keep the Providian?
I know it's bad to cancel old cards, but is it worth paying a total of $120 annual fees on cards I probably won't use, when I have ONE card that has a higher limit than all 3 combined?
I am going to get into the habit of only using cash, which I've been doing for a while, and just using the cards for small purchases and paying them in full each month...
Exactly. You should call them and tell them you found a much better card somewhere else and see if they can drop your annual fee and reevaluate your account for a CL increase or at least a much more attractive APR.
Here's my background with Capital one at the beginning: I had a cosigned card at 16 with a $300 limit and No AF. At my 18th birthday they upped me to $500 but my mom closed the account and cut me off I reapplied to Capital One and they ten approved me for $7000.
They totally should be able to work something out for you on a credit limit so small and the annual fee. They probably just keep charging you for it because you haven't asked them otherwise. Also suggest that they might possibly merge the lines of credit into the oldest account. I'd hate to cut that card off for the longest credit history you have open, but the fee is the problem if you simply choose to let it lay dormant.
PapiShasho
New Member
posted: Nov. 11, 2005 @ 3:18p
mikesay98 said: How old are you? Or better, were the capital one cards your first ever credit cards?
I'm 21, and yeah those were my first credit cards...not counting the Burdine's card from about 3 years ago that I had that went to collections...
I spoke to someone before regarding the annual fee, and I told them I got approved for the Providian with no annual fee and I wanted to see what they can do...the gy put me on hold and then hung up on me...
do they have a retention department or do the regular reps handle everything?
PapiShasho said: me on hold and then hung up on me...
do they have a retention department or do the regular reps handle everything?
When I needed them to lower my APR again because it jumped up behind my back, they transferred me over to a separate department. There might have just been something wrong with the line.
ask to convert them to cards with no annual fee if they can't do that just cancel. no reason to keep paying annual fees on the otherwise useless card to make you credit history just a little bit longer.
The only reason to keep them would be if you need a perfect FICO score RIGHT NOW. If you are not buying a house in the next few years then a small decrease in your FICO which saves $117 a year is definitely a good deal
mbaker4096
Senior Member - 1K
posted: Nov. 11, 2005 @ 3:58p
Agreed. The only reason to close an existing tradeline is if they are charging you annual fees, maintenance fees, or dormant account fees. Sounds like you've met those criteria.
ThornnSpear's post re: calling them to cancel and letting them know it's because of the fee is right on. Give them the chance to offer you a no-fee account and maintain the relationship, but if they won't do it, show them the door.
Good luck!
PapiShasho
New Member
posted: Nov. 11, 2005 @ 4:11p
yeah...the oldest card with the $59 annual fee is actually already at a $0 balance, and the other two are each at $200 which are pending balance transfers to the new card, so once the BT are done, they will all be at $0 and the new card will be at $400 which I'm already saving to pay on the very first statement.
so should I call now or should I want until the balance transfers are done and all 3 cards are actually at $0?
AstronusX
Member
posted: Nov. 11, 2005 @ 4:40p
Capital One is suck they don't increase CL, and cannot request for it also. Best to talk to them get zero Annual Fee, and stop using it.
summitsix
Senior Member
posted: Nov. 11, 2005 @ 4:41p
While always a good pratice to make sure cards you want to close are paid off ($0 balance) and reported that way to the credit bureaus, it is ESPECIALLY important that you follow this pratice with Cap1. Keep in mind, they will NOT close it until it is $0 and it will take 3 month for the credit bureaus to update.
If ANY charge (e.g. recurring) is made in that window (90-days), the account will remain remain open even though you called to close it, so be very careful.
plz update this with what happens. I have a cap1, first account $500 limit they refuse to up it for the last 4 years although I have no fee for it. I can't close it becasue it's my first card, would hurt my fico. I wonder if you threaten to cancel if they will up the limit..please update us
WhiteGuy said: plz update this with what happens. I have a cap1, first account $500 limit they refuse to up it for the last 4 years although I have no fee for it. I can't close it becasue it's my first card, would hurt my fico. I wonder if you threaten to cancel if they will up the limit..please update us
I recieved a Capital One cc on my 18th birthday. I had $201 credit limit then after 3 month they raised it to $400. I called to get it raised more but they said you can only get it raised once ever 6 month. Unless you have terrible FICO score I don't see why they won't raise your limit. I always pay my bill on time every month with $0 balance...
I must be out of the loop for a while.. Platinum with $300 CL?! D**n, back in the days, Gold actually meant something. Ding it, I'm old.
contemplation
Senior Member - 1K
posted: Nov. 11, 2005 @ 7:40p
I was in the same boat. SAME CARD. Same plan.
Cancel that baby. Capital one, and that card & plan suck.
nhokt
Senior Member
posted: Nov. 11, 2005 @ 7:52p
contemplation said: I was in the same boat. SAME CARD. Same plan.
Cancel that baby. Capital one, and that card & plan suck.
Same thing here!
Cap1 was one of my first cards, after a few years I got a couple new cards with much higher limits and no fees. Cap1 wouldn't drop the annual fee so I dropped them, never looked back and my credit report recovered quickly.
Capital One doesn't report credit limits to credit bureaus. So the low CL won't be hurting your score. The age of the account will help. Cancel if they won't convert it to a no-annual fee card, but otherwise keep the account open, because the longer credit history will help you. Just keep the account open, even if you never use it. Leave the card in your drawer or something. Even years from now, keeping this account open will help your credit score, because of the benefit of aging your accounts on your credit file --- even if you never use that card again.
The collections account is certainly killing your credit score, even if you have paid off the obligation in full.
You should go to www.annualcreditreport.com and get copies of all your credit reports (it's free). Then, dispute any negative information. There's a significant chance that it will get deleted.
www.creditinfocenter.com is a great resource for credit repair.
You also might want to negatiate with the collection agency to get them not to report the account to credit bureaus.
Cut your CRAP One credit cards, and be sure to spit on them too. I would definetely close those accounts. I would start with some new credit cards. You should not pay an annual fee. If your still a student, try getting a student credit card. CRAP one is a horrible company. I once had a CRAP one card, and started with $500 limit, 3 years later I left with a $500 limit. While I was getting 25k limit from AMEX. Go to CREDITBOARDS.com and see how much everybody hates CRAP ONE!
Got Cap One CC over a year ago - started out with $300 limit and now at only $500 (stopped using it - don't remember if it's a regular CC or a student one)
On the other hand, got a Citi student CC around the same time: $3000 limit starting out -> $4200 -> $6400 -> $7600 right now. Also have Providian ($6000 -> $7500) and a few other CCs ($2500 & $800)
Will close down Cap 1 if they start charging me an annual fee (don't really care about them since they don't report limits anyways)
mofowutz
Member
posted: Dec. 16, 2005 @ 6:01p
mgersen said: Capital One doesn't report credit limits to credit bureaus. So the low CL won't be hurting your score. The age of the account will help. Cancel if they won't convert it to a no-annual fee card, but otherwise keep the account open, because the longer credit history will help you. Just keep the account open, even if you never use it. Leave the card in your drawer or something. Even years from now, keeping this account open will help your credit score, because of the benefit of aging your accounts on your credit file --- even if you never use that card again.
The collections account is certainly killing your credit score, even if you have paid off the obligation in full.
You should go to www.annualcreditreport.com and get copies of all your credit reports (it's free). Then, dispute any negative information. There's a significant chance that it will get deleted.
www.creditinfocenter.com is a great resource for credit repair.
You also might want to negatiate with the collection agency to get them not to report the account to credit bureaus.
So would using a capital one card build credit (effectively) since it doesn't report credit limits to the credit bureaus? If C1 doesn't report the CLs, then I'm asuming its safe to go pass 50% of the CL and have no repercussions for that. The only thing it would do to help your credit would be aging your credit report, correct? So wouldn't using a credit card that reported the CL be better for the credit report? What's up with low CL hurting credit anyways
Is it better to pay off account balances before you are billed then (since the balance would show up as zero in the Credit Report), or is it better to pay it off after you are billed?
P.S. Does anyone know how often C1 reports you to the three credit bureaus? THanks so much
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