Should I ditch Capital One, and get a new credit card?

Question

Hey Guys!

I'm Alex, and really need your advice on this subject. I currently have a Capital One Visa credit card, but seriously thinking about canceling it because I've heard so much BS about that company. That they don't report the right information to the bureaus, and will most likely end up hurting your overall score. Should I ditch them and get a credit card with my bank which is Banner Bank Visa? Would that be a better idea than to stay with these cynical *** holes? What are advantages of owning a Banner bank credit card, is this a good movie? Can I have all your honest opinion's please...no smart remarks. I know that canceling a credit card ruins your score, but what's the point staying with Capital One my score is already ruined right? I want to develop a good rating score for when I need a personal loan/auto loan or whatever it maybe.



Thanks in advance.
Alex

What credit card would you recommend, one is that accpeted everywhere, great rewards, cash back, etc? All your help is appreciated, I wanted an American Express but turns out that is a bad idea?

Answer 1

As much as I dislike Cap One, you might keep it for awhile.
They have had many complaints filed against them for not reporting limits so there is a possibility that by this fall they may start reporting the credit limits.

As for suggestions on what cards you might apply for, that would depend on what your credit file and scores are like.

If you are subprime, you might try with Orchard or HSBC.
If you are inbetween sub and prime, you might try Hooters or Juniper's Carnival card or Juniper's US Air (US Air does have a fee, but it is waived for the first year and you can always try to convert the card into another Juny product)
If you are closer to prime you could try Citi, Discover, Chase (Chase Freedom might be a good start and you can always try conversion to another card if it's not exactly what you want)

Anyway, without knowing your scores and if you have baddies or if your reports are clean, those are ONLY suggestions.

You might click on my profile and click on the last link listed. Then look up on the top right hand side of the page for Credit Pulls, click on that and enter a card are card company to see what people have applied for, what their scores were at the time, if they were approved, etc., etc., etc.

Answer 2

Your concern lies in the fact that Capital One reports your high balance as your credit limit rather than the actual credit limit of the credit card. This may result in a slightly lower credit score, because your debt to limit ratio may be higher.
This may impact your credit score slightly, but it is not going to "ruin" it. The most important thing to building a strong credit score is make ALL of your payments on time. Making late payments will kill a credit score quicker than anything.

Before canceling the credit card, ask yourself this question - how many other credit cards do you have? If Capital One is your only credit card, canceling it will definitely hurt your credit score, as your are taking away your only active trade line. However, if you have 3 other credit cards with no annual fee, and Capital One charges an annual fee, by all means drop Capital One!

If you are interested in applying for another credit card - go here: http://www.creditcards.com - it is a good website. It has info on annual fees, what perks the credit card might have, and what type of credit you need to get approved.

Answer 3

The number of credit cards you have is really irrelevant. What you should really care about is your "credit utilization ratio", which accounts for about 30% of your FICO credit score. Payment history, which accounts for 35% of your FICO scores, is of course important too, but I'll assume you're using these cards responsibly by always paying your balances in full and on time. The problem is most retail credit cards skew consumers' credit utilization ratios because they offer low credit limits. I suggest you determine what your current credit utilization ratio is, and if you're above 30% I would look into getting yourself another credit card. Apply for one jointly with your husband so your credit reports don't only show you as an AU on all the cards. The additional credit limit and positive payment history you build should help improve your credit scores rather quickly.

Answer 4

Who says cancelling a credit card ruins your scores? If you're having problems with Capital One, then by all means either transfer to another card, pay it off and cancel. But don't make your decision based on what others have said.

I had one several years ago. When they let me go over my limit, I was hit with a ton of fees and still took several months to get it under the credit limit.

Now, it's gone. Paid off, done with. And despite what seems to be hundreds of solicitations, I have not returned.

No one card is much better than another from what I've seen.. They all change colors and stripes when they don't get their money on time.

Answer 5

Capital One isn't the greatest credit card out there - but no credit card should harm your record provided you pay on time and keep your balance to about 30 % of your total credit limit.

That being said, American Express is known to have a lot of benefits. Their points / rewards system is hard to match.

The bottom line is that you need to use your credit wisely and you won't get problems on your credit report. You won't be penalized heavily for closing a credit card account provided it's closed in good standing.

Answer 6

You're right... a lot of people have problems with Capital One. If you're thinking about switching, here's a good place to compare other offers:

http://www.asapcreditcard.com

I wouldn't worry to much about cancelling or deactivating your old credit card. YES, it can have a slightly negative impact on your credit score-- but it's not going to "ruin" your credit. If you aren't happy with Capital One, you should get rid of the card-- or at least payoff / transfer the balance.

Hope this helps. GOOD LUCK!

Answer 7

Join a Credit Union and apply for on of their cards and request a balance transfer to pay off Capital One the after you paid it off cut up their card bur do not close the account as the payment history will still reflect on your credit score as positive.

Answer 8

if you want a new card, great.,.. but dont cancel this one= leave it unused, at best but do not cancel.

your credit score can suffer if you do.. becuase your average age of accounts will take a hit.

(pay off the balance one moneth besides $5. teh next month pay off the $5. this will help it report accurately for the purposes of getting your score high.)

i'd advise you to try MBNA if you want a manual review of your app (good if you need to talk to someone and hope for a better Credit line or if you think a computer will not asses you properly) or citibank if you want an auomated approval/decline.

Answer 9

Pay off your card, and cut it up or lock it up somewhere. I had a Capital One card and it took me over an hour to get customer service...and when I do, I have to talk to some foreigner who cant speak English or who floated to this country on a door or other piece of debris!! I got a Discover card, they have excellent cash back benefits. You can check them out at discovercard.com. Alot of places don't take discover, however. A Visa or MasterCard are the most widely accepted.

Answer 10

Just because you hear rumours doesn't mean they are true. Do you know for a fact that your credit rating is ruined? Better to pay off the card you have now, otherwise you will be paying a higher interest rate on a new one later on.

Say....what's in your wallet?