i have a card from capital one using long time about 7 years ,i thinking to cancel it because interest rates too high 24.6% and need to pay annual fee $39 a year ,(at 2006 i got an other card interest rate is 9.99 and no annual fee)so i did not use my capital one card about a year from 2006 to now and right now need have to pay annual fee $39.(also i got dell perfect card about 2 year interest rate 25...% but no annual fee thinking to cancel it too)but my friend told me do not cancel because have a long credit history from my capital one card )my credit score is 640 no good right.
can someone know cancel it is good for me or not?
which card is good for build up my credit score?
2007-03-13 02:33:58 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
Call Capital One and ask them to change it to a no fee card. Also, ask them if they have a better interest rate.
I did that with one of mine. Got a better interest rate and also got switched to a card that offered rewards (cash back). Most of the time, they don't want to lose you as a customer so they'll change your card to a different type of account.
2007-03-13 02:48:38 · answer #1 · answered by Faye H 6 · 0⤊ 0⤋
if you have a credit card that has a long history like your capital one it looks good on your credit. there must be a reason your credit is only 640. any collections? late payments? how many tradelines do you have?
i would suggest calling capital one and asking if they can upgrade your card to an account without an annual fee. ifyou do not have a balance then the interest rate will not matter. if there is a way you can keep the account open for free that will be the best outcome in this situation.
rule of thumb on revolving cedit (credit card) is to keep your balance to 30% of your limit. that is the most effective way to increase your credit score.
if you can get new cards with better terms and conditions then it really won't make sense to keep the capital one for much longer. maybe the first year that you have your new cards i would suggest to keep the capital one then close it right before the annual fee is due. that is only if they don't drop the fee. (most likely they will)
!!!!BEWARE!! of credit cards with 0% intro rate. they are great for 6 or 12 months but after that the rate WILL adjust almost to the highest it can by LAW. even if you have a great credit score they WON'T care! you will just have to cancel the card and start over which means new inquiries on your credit and new accounts opening and balance transfers new administration fees application fees JUNK fees!
hope i helped
2007-03-13 11:03:43 · answer #2 · answered by aemerson82 1 · 0⤊ 0⤋
At the very least, you must call to have the annual fee eliminated. There is no reason to pay an annual fee in today's credit environment. You should also have the rate reduced by at least 10%. There really should be no problem doing this if you've been a good customer.
If you do decide to cancel your card, your credit score will lower, but it's only due to a limitation of the credit score formula. Let's say you have 2 cards, each with a $5,000 limit and have $0 on one card and $2,500 on the other. Before you cancel your card, you're using 25% of your debt capacity. After you cancel, you're using 50% of your debt capacity. This "increase" is what causes your credit score to drop.
Check out the link that I've included for some more information.
2007-03-13 10:45:08 · answer #3 · answered by curious_george 2 · 0⤊ 0⤋
Most people think that keeping a zero balance on their credit card will make their credit score higher. That's incorrect.
Credit card companies want you to keep a running balance so they make money off from you every billing period with the interest you have to pay. That's what shows you are a good credit risk.
What makes your credit go down is when you exceed your ability to pay more than the minimum balance every month. In short, when you over-extend your credit.
When you cancel a credit card, send a letter that they must sign for and that you will get a receipt for, stating that you are cancelling the credit card without prejudice and want that stated in your credit record. That way when someone requests your credit history they will see that it was YOUR choice to cancel the credit card and not because you were over-extended on your credit.
It's always a good idea to verify that the letter was indeed included in your credit record.
2007-03-13 10:05:31 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You can get credit cards with 0% interest and 0% balance transfers so I'd cancel all of your other cards and transfer the balances onto the new card.
Have a look on the net to see which card would suit you, most of them are 0% for the first 6 or 9 months.
I got a card 0% interest for 6 months then 12.9% after which is good.
2007-03-13 09:51:16 · answer #5 · answered by gandhi1078 3 · 0⤊ 0⤋
THanks for that info.. I will not use that card.
I had the same problem, way to high intrest rate. What I did, I payed off the credit card with another credit card that offered me 0% for a whole year. (I was paying 30%) That helped out a lot!!
2007-03-13 09:49:03 · answer #6 · answered by Mike E 3 · 0⤊ 0⤋
Well, you can cancel, but keep in mind, when you cancel ANY credit card, your credit rating will go down!! Don't know why, even if you pay records are good. I would keep it, but just do not use it. (If you are concerned about your credit rating.)
2007-03-13 09:43:24 · answer #7 · answered by RICH 6 · 0⤊ 0⤋