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Stu.Padaso

Should I cancel this card?

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My oldest credit line on any of my reports is a Capital One Gold card with a $2500 limit and $59 annual fee. It was opened in Feb 2007, so it's coming up to 3 years old.

 

My 2nd oldest card is my BMO Airmiles MC with a $17500 limit. It was opened in Jan 2008. So it's 11 months younger than the CapOne card. Just last month BMO bumped the credit limit from 12k to the current $17.5k.

 

I have a TD Rebate Rewards card with a $15000 limit which I received a couple months ago. I also have a joint Canadian Tire Gas Advantage card (jointly with my long time girlfriend) with a $3000 limit that we opened up in July 2009. Yeah, the lady at the store entrance peaked my GF's interest, but she was declined likely because she has no verifiable income. So we tried again with a joint account and were approved.

 

All cards are paid in full. I never carry a balance. I might put $1000 on the BMO card a month, and pay it in full a day or two after I check online and notice they cut the statement. The TD Rebate rewards I might spend $100 a month, and I usually pay it full a couple days after the charge hits my account. The Capital One card I used a grand total of 3 times in the last 12 months, and it was for piddly little $20 and $30 online purchases. Once again, once the charge hit the account I generally pay it off.

 

The CanTire card is paid off in full a day or two after the statement is cut and available online. Between my GF and I , we run anywhere from $1000 to $2500 on it in any given month. Where I live, the CanTire gas bar is usually the cheapest in the area. But having this card nets us an additional AND instant 2cents/per litre discount, with higher discounts the more we spend per month (it runs on a month by month basis). I use my CanTire strictly for fuel, but my GF uses it for practically everything she buys. So far, every month but 2 did we reach the highest plateau of a 10 cent per liter discount.

 

(Seriously, the CanTire Gas Advantage MC is the BEST damn CC I've ever had. I like my rewards on the other CC's but this one has instant reward gratification. Just swipe the card at the pump and it instantly discounts the cents/per litre. Then when I'm done pumping the receipt shows how much I saved. When my GF fills up once a week, she generally puts in 50 liters [usually more...I'm being conservative here]. So with our current 10 cents per liter discount, she saves $5 right there. I fill up once a week and put in 40 liters [conservative], so that's $4 savings right there. So, filling up 4 times a month nets us $36 in savings. Right off the bat. No waiting. It's an instant reward. How can you beat that?)

 

Wow, sorry about that. Back on topic....

 

I was also recently approved for an Amex, but I have no idea what the credit limit will be. This happened within the last week.

 

My current FICO scores are 795 with Equifax and 788 with Transunion.

 

Is it going to hurt my score if I cancel the CapOne card? How much will it hurt? I'm thinking of buying a new vehicle this coming spring/summer and might have to finance a portion of the purchase price. I'd like to get the best financing rate possible, so I'd like to keep my score as high as possible.

 

I'm not normally a FICO nazi like some others are on these boards, trying to squeeze every last point out of it as possible, but I'm afraid if I drop the CapOne card it might shave enough points off my score that it might have an effect on the auto loan interest rate.

 

Or am I worried about nothing?

 

Any opinions or advice would be greatly appreciate!

 

(sorry for the rambling nature of this post. I tend to do that. But I'd rather say as much as I can so that the first reply isn't "we need more info!" ahahaha).

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Hmmmm so close to the 3 yr mark! Reading through the US stuff, I'm inclined to think the 3 yr mark is a magic year for your credit scores and length of credit history. Since you've been rebuilding the last few years this card is your longest rebuilding credit. Since your other cards will be aged to 3 yrs before next year's annual fee hits, personally I'd lean toward paying it this year and then canceling before the 2010 fee hits.

 

ETA: I called the other night to cancel my Cap1 card and told them all the reasons I didn't want to keep the card - annual fee, no points, no CLI available, no balance transfers because of the limit, nothing of use to me other than rebuilding and since I have an unsecured card now i really don't need a rebuilder crap card. I'm also tight on finances right now after a separation in July now so the $59 fee really falls outside my budget. I really stressed that if it weren't for the annual fee I wouldn't be making the call because it is handy to have a Mastercard in my wallet in case the Visa system is down. No rebuttals, no attempts to explain the value of keeping the card, just an OK I'll close that for you. Then again they're not making any money off me since I PIF every month and have since I opened the card a year ago. I also never allowed a statement to print with more than 10% of the limit used. So if you decide to cancel, be prepared that they likely won't offer to do anything and will just go ahead and cancel it right away.

 

Just my 2c. :rofl:

 

Q

Edited by Quasei2

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Thanks for the reply. I also seem to think there is something magical about the 3 year mark. I don't know what it is, but I do see it mentioned from time to time in the Credit forum.

 

I mentioned in my other thread about possibly cancelling this CapOne Gold card sometime last week, but I never got around to actually doing it.

 

So I just called them. Not necessarily to cancel it, but to see if 1) they'd waive the annual fee, and 2) see if they'd upgrade me or something if I played the "I don't need this low-limit no-rewards card". I really would rather not cancel it. As I said before, CapOne pulled me up when I was down. I may be a lot of things, and I've done a lot of Chocolate Goodness things in my life, but I like to think of myself as having at least a speck of honour. So deep down I'd hate like hell to dump CapOne like the turd I flushed in the bathroom this morning.

 

Long story short: the guy immediately offered to waive the annual fee. No questions. He just did it. It's due to hit in January. He said it'll hit my account and then I'm to wait a few days and then I'll see the credit come thru and zero it out. He said they can't just stop the annual fee, so it has to hit the account at some point. (Watch, with my luck the $59 annual fee will hit my account the day before the statement runs on the ~23rd of January, forcing me to pay it, then their credit comes thru, and then I'm stuck with a $59 credit that I have use up at some point.)

 

He also went on to say that I'll have to call again next year and ask to waive the fee again. He wasn't as optimistic about getting it waived a 2nd time however. He said that normally CapOne will only waive an annual fee once per account. He said I could try, but "don't be surprised if it's denied".

 

Then, I told him I don't really need the card any more because I have others that offer me much more (credit limit and rewards and such). It was sort of my way of hinting about cancelling/upgrading the card. He quickly looked back in my record and reminded me that CapOne happily gave me a secured card to help me re-establish my credit and then they quickly moved me to a regular card. He said things like "that's what we try to do...help people get their credit rolling" and "I hope we helped you improve your credit worthiness". (Not actual quotes, but close enough.) So yeah, the dude knew how to pull on my heart strings. He must of known about my posts in this forum. Damn you!

 

He offered to upgrade me to a 'better' CapOne card. Or he could give me a credit limit increase on my Gold card. BUT...He said he could not simply "upgrade" me to a no-fee/rewards card with a press of a button. I'd need to re-apply. I didn't really want another inquiry on my report, so I just told him that I really didn't want another card nor a CL increase. I'd make due with what I had for another year.

 

(For the record: the call to CapOne was pleasurable. I was never put on hold and was talking to a live person within about 30 seconds of dialing the toll-free number. And the guy I talked to was very friendly, helpful, and honest.)

 

So, in the end, I got the $59 annual fee waived and I'm going to keep the card. At least until this time next year. If they don't waive the annual fee next year, welp, that's it for Capital One. It's been great CapOne. I appreciate all you've done for me, but it's time you started treating me like a big boy now.

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Wow congrats! I'm glad they were so helpful for you and gave you that extra time so your other accts could age the extra year. :D I thought I'd be more sad that the acct is closed, but I'm really not. I'm finally free of that part of my life, if you know what I mean. Strangely freeing!

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I know it must sound foolish of me to have some sort of sentimental feelings for CapOne, but I can't help it. It's nice to know I get a free year, so I'm happy with that.

 

But next year at this time it's gone. UNLESS CapOne comes up with an offer of an upgraded Card and/or substantially higher credit limit and waive/remove any annual fees. And if they do, their offer will have to literally knock my socks off to keep their card in my wallet.

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haha! I don't think it's foolish at all to have such sentimental feelings for Cap1. In fact, I can't bring myself to destroy the card so it's going in my permanent finance records file folder. It helped me get where I am today financially. In a year or 2 I might even consider looking at one of their other cards. I just don't need the card right now and the deposit was a loan from my ex to get me up and running again. I'm glad to be able to give that back to him. It's one more way that I'm finally standing on my own two feet again!

 

So yeah I totally get the sentimental feelings and if it's foolish well then we both are foolish. LOL

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