Tuesday, April 7, 2009

I am closing my Capital One

I just got off the phone with the rep. She claims there is nothing I can do to make them review this change. The rate is fixed(technically, it's a variable rate) and it has affected majority of their customers. My current rate is even lower than i thought. It is 7.6% and the want to increase it to 17.9%. Even typing it out it sounds ridiculous. 10% higher and I have done nothing wrong. Simply because of the economic times? Sounds like they are taking the piss to me.
This is the only option I have and I think I am going to take it. I have to think about it a little more (so any opinions are welcome) but I am leaning towards it. I can opt out of this increase by April 17 (thank God I read this letter today) and it will keep my current APR but the account will be closed on May 17. Then I just keep paying until the balance is paid off.
The pros and cons to this I can see are as follows:
  • I won't be able to spend on this card anymore therefore I will be forced to live more within my means.
  • This account will only go down helping my budget reduction plan.


  • There will be less credit available for an emergency. However, my other cards do provide sufficient credit.
  • I've had this card for a while so my credit will take a hit. My credit will also suffer b/c it has a large credit line (12,500). However, your credit score is not the end all be all and it bounces back pretty quickly. I am not trying to buy a house or anything soon so it doesn't play a big factor. The lady over at bouncing back from bankruptcy has a credit score close to mine and she filed for bankruptcy.
  • I get miles on this card and that has been pretty sweet. No hassle miles were great. I guess I will just keep using my other credit cards to get miles although that is tied to specific airlines. I guess I'll redeem the balance for something else.
  • It's just annoying to be put in this situation.

Although there are more cons than pros, I am still leaning to closing the card. That kind of interest rate on such a large balance is really not something I can deal with. It would be a true case of 3 steps forward 2 steps back.



  1. Hey!! I am so sorry about this stupid card! I am actually in the same sittuation.. or worse maybe.
    I have a card with a $7,000 balance.. at... 26.4%. Ummm do you know that as long as it is at 26.4% I will NEVER get it paid off.
    They wont lower it.. and I have had no luck getting a better rate on a different card. I have never been late on a payment in my LIFE, so that is why I think it is so high.. they KNOW that I will pay my bills.
    LOSERS. I hate CC's.

    I would vote to close yours.. that way you dont add to it- and dont give into the new rate.


  2. Close the account to keep the lower rate. You're paying it off and don't need to keep it open, simple as that. Enough shifting and moving stuff around to different rates. Just pay it off and be done with it.

  3. I have been around...just very busy. Just checkin in. I have one CC at 0% until August. So I *need* to pay it off by then. I think I will be able to--it is just fully dependent on me working over the summer.

    I would recommend closing the account also. It will save you money. You'd be better off paying cash for the plane tickets anyway.

  4. Who do you bank with? Like for savings and checking? I got my 0% card from my bank and it really helped to build a relationship with a personal banker in order to do it. Just a thought. I have a high credit score so that probably helped me out too.


Hit me with some tough love