Author Topic: Closing a secured creditcard (Read 3178 times)

helpusout · « **on:** July 08, 2013, 02:25:13 PM »

We had to file a bankruptcy and were working to restore our credit.
We got a Capital One secured cc with $200 limit, used it and paid on time for 6 months, and then thankfully got approved for Ink from Chase.
My question is, is it bad for my credit if I close the Capital One card? They have $200 of our money and I dont use the card any more?
How long should I leave it open for?

mordyl19 · « **Reply #1 on:** July 08, 2013, 02:33:06 PM »

It probably helps to leave it open while restablishing your credit score.

Alexsei · « **Reply #2 on:** July 08, 2013, 02:33:28 PM »

You probably pay a anuual fee no?

mordyl19 · « **Reply #3 on:** July 08, 2013, 02:35:41 PM »

Does Capital One have cards with annual fees?

Alexsei · « **Reply #4 on:** July 08, 2013, 02:36:47 PM »

Quote from: mordyl19 on July 08, 2013, 02:35:41 PM

Does Capital One have cards with annual fees?

their secured card has an annual fee

mordyl19 · « **Reply #5 on:** July 08, 2013, 02:39:55 PM »

Is there a way to avoid it with a SM? Or any other way?

helpusout · « **Reply #6 on:** July 08, 2013, 02:40:29 PM »

Yes it has a $29 fee which I paid in October.
I dont really want to pay it again if I am not even using the card

But I guess its my investment into rebuilding my credit, no?

Alexsei · « **Reply #7 on:** July 08, 2013, 02:42:49 PM »

I got the capital one secured as my first credit card, its 3 years now and i paid annual fee only the first year

helpusout · « **Reply #8 on:** July 08, 2013, 02:45:15 PM »

How? Did they ever refund your deposit?

Alexsei · « **Reply #9 on:** July 08, 2013, 02:47:10 PM »

I call them up every year after anniversary date that I was promised my card will become unsecured and it did not, they say there's a back office taking care of that and that they can't estimate when it will be, I ask them to waive the fee and they say it's the last time we are doing it..............

AsherO · « **Reply #10 on:** July 08, 2013, 02:59:20 PM »

Quote from: helpusout on July 08, 2013, 02:25:13 PM

We had to file a bankruptcy and were working to restore our credit.
We got a Capital One secured cc with $200 limit, used it and paid on time for 6 months, and then thankfully got approved for Ink from Chase.
My question is, is it bad for my credit if I close the Capital One card? They have $200 of our money and I dont use the card any more?
How long should I leave it open for?

Ink from Chase won't show up on your credit report and/or count toward your credit score. Pay it off for six months then apply for some Chase personal cards (make sure your utilization is low on your Ink card).

As for your Cr@p1 card, keep it active and spend $5 a month on it, make sure to pay on time.

helpusout · « **Reply #11 on:** July 08, 2013, 03:44:36 PM »

Quote from: AsherO on July 08, 2013, 02:59:20 PM

Ink from Chase won't show up on your credit report and/or count toward your credit score. Pay it off for six months then apply for some Chase personal cards (make sure your utilization is low on your Ink card).

As for your Cr@p1 card, keep it active and spend $5 a month on it, make sure to pay on time.

Thanks for the tips.
My utilization is not low, since I dont have any other cards earning points and my credit line isnt too high. Would that matter towards whether I got a personal card after 6 months.
Also, is it better that I use the Capital One for a small purchase every month instead of it just having a $0 balance?

AsherO · « **Reply #12 on:** July 08, 2013, 04:01:32 PM »

Quote from: helpusout on July 08, 2013, 03:44:36 PM

Thanks for the tips.
My utilization is not low, since I dont have any other cards earning points and my credit line isnt too high. Would that matter towards whether I got a personal card after 6 months.

It's best to have your utilization (reported as) low when you apply, but you might get approved even if this isn't the case.

Quote from: helpusout on July 08, 2013, 03:44:36 PM

Also, is it better that I use the Capital One for a small purchase every month instead of it just having a $0 balance?

I think so.

Lazegotit · « **Reply #13 on:** July 09, 2013, 11:48:40 AM »

Closing a secure card makes a dark mark on your already bad credit. The best option to get away with the annual fee is to call Capital One and tell them that you love the card, just don't wanna be paying an annual fee, and they will prob wave the fee...

hertzinstl · « **Reply #14 on:** November 06, 2013, 07:19:06 AM »

My first CC was a secured card from wells Fargo, I would like to close it.how bad is the impact on your credit score for closing your first CC? (The next one after that, was opened 11 months later)

dsw193 · « **Reply #15 on:** November 06, 2013, 08:06:00 AM »

Quote from: hertzinstl on November 06, 2013, 07:19:06 AM

My first CC was a secured card from wells Fargo, I would like to close it.how bad is the impact on your credit score for closing your first CC? (The next one after that, was opened 11 months later)

Why not convert it to a different card?