Should I cancel my Capital One credit card?

[jlee]

I've had it since 01/05 -- had to argue for a limit increase (was $500..not enough to replace my truck's leaf springs)..finally managed to get a $1k limit, but no luck on reducing the APR (~23% :Q). I've always paid in full every month, so it's not that big of an issue..but I was fed up with them, so I applied for a First Rewards card. That just came in today - $4900 limit, 0% APR until Sept. 06, and ~14% thereafter. Should I bother keeping my Capital One card, or just go ahead and cancel it?

I'm not sure which would be more beneficial to my credit rating..holding onto the account for a longer period of time, or reducing the # of cards (I have a Sears card & Tires Plus card I'm procrastinating on canceling as well - no need for them anymore).

 

[amdforever2]

Closing your oldest account will reduce the average age of your accounts and lower your FICO score.

KTHX

 

[ultimatebob]

Originally posted by: amdforever2
Closing your oldest account will reduce the average age of your accounts and lower your FICO score.

KTHX

QFT. Unless this credit card has an annual fee, you should probably keep it.

 

[Strifer]

What is your total outstanding balance (of all open accounts)?

If you close this account, you affect the ratio of available credit to debt. If your debt is over 50%, this can adversely affect your credit rating, and it would be in your interest to keep the account open. However, if your have other open accounts with low balances, you should close the account. Because it is so young, it should not have any negative consequences for your credit score.

Edit: If this is your oldest card, you should definitely keep it active.

 

[stan394]

what is your wallet?

 

[jlee]

Originally posted by: Strifer
What is your total outstanding balance (of all open accounts)?

If you close this account, you affect the ratio of available credit to debt. If your debt is over 50%, this can adversely affect your credit rating, and it would be in your interest to keep the account open. However, if your have other open accounts with low balances, you should close the account. Because it is so young, it should not have any negative consequences for your credit score.

Outstanding balance is under $400, and will be paid before I start accruing interest fees. The only other debt I have is my truck loan (~$4k remaining; $5000 loan).

Edit: Yeah, it is my oldest card..guess I'll hang onto it, then. I'm a little annoyed with them, though -- it was difficult enough to get an increase to a mere $1000 -- with an insulting APR (over 20%). Meanwhile, another company gives me almost 5x the limit and 2/3 the APR on request.

 

[funboy6942]

Originally posted by: stan394
what is your wallet?

Whats not in my wallet

 

[everman]

Just keep it if it doesn't cost you anything.

 

[amdforever2]

So long as it has no annual fee your best option is to bury it in the depths of your wallet and use it to buy a pack of gum twice a year.

 

[jaybert]

Originally posted by: ultimatebob

Originally posted by: amdforever2
Closing your oldest account will reduce the average age of your accounts and lower your FICO score.

KTHX

QFT. Unless this credit card has an annual fee, you should probably keep it.

he's right, so i dont know what you're whining about.

 

[jlee]

Originally posted by: jaybert

Originally posted by: ultimatebob

Originally posted by: amdforever2
Closing your oldest account will reduce the average age of your accounts and lower your FICO score.

KTHX

QFT. Unless this credit card has an annual fee, you should probably keep it.

he's right, so i dont know what you're whining about.

 

[ultimatebob]

Originally posted by: jaybert

Originally posted by: ultimatebob

Originally posted by: amdforever2
Closing your oldest account will reduce the average age of your accounts and lower your FICO score.

KTHX

QFT. Unless this credit card has an annual fee, you should probably keep it.

he's right, so i dont know what you're whining about.

 

[Rubycon]

Just what is a capital one anyways?

SHIFT + 1 = !

Perhaps that explains the formula for calculating the stratospheric APR! :laugh: