Capital One

edgesphere

I currently have a Capital One Classic card, the limit is £2600 and I am thinking about closing the account as I don't use the card that much any more due to the APR which as of the last statement was in excess of 30%.

I have a Barclaycard on a 0% BT offer for many months to come and a Nationwide card on a reasonably low-ish rate which is where my day to day spending is made and the balance is cleared in full most months unless I make a particularly big purchase and for the sake of a few quid interest I split it across a couple of months.

I appreciate that there is no such thing as a credit score, however as far credit history goes would closing a long term account (open since 2008) that has been managed well cause any issues or look odd to potential future lenders if I decided in the to apply for a card in the future with a different mainstream lender? The only reason I'd probably do that is to shift any large purchases around on 0% balance transfers.

As an aside, is Capital One still considered to be a subprime lender?

AliceBanned

I think it is subprime and won't add anything positive to your credit file if you have one. Any card offering you that rate of interest is probably 'subprime'. I am paying my Cap One card off at the moment before I pay off any other card, then I will close it and not open one again.

TheLondoner

anyone heard of the mbna everyday card? getting a ridiculously good 7.9% with them. Don't ever get charged interest as I pay it off in full, but may help others if they wish to split charges over many months as the OP has stated.

edgesphere

That's pretty much what I had thought given the rate of interest. I got the card just after I started my first job as a teenager, they were the only ones who would lend to me at the time.

I've let it sit there unused for a while though so I'll get in touch with them next week to get the account closed.

edgesphere

It's something I have seen, the rate is a lot lower than the current APR on the Nationwide card I have got.

Not sure what their acceptance rates are like though as I did have a rocky time with credit around 2012/2013 with a handful of missed payments.

TheLondoner

edgesphere wrote: »

It's something I have seen, the rate is a lot lower than the current APR on the Nationwide card I have got.

Not sure what their acceptance rates are like though as I did have a rocky time with credit around 2012/2013 with a handful of missed payments.

Think it's pretty random how they decide who to give these cards too - credit card companies, banks and supermarkets have their own rules. For example I got a credit card from mbna no questions, but just applied for an Amex rewards card but they want to make more checks on my application. Also Tesco rejected me for a current account twice with no overdraft, and halifax clarity gave me a card, no questions.

edgesphere

TheLondoner wrote: »

Think it's pretty random how they decide who to give these cards too - credit card companies, banks and supermarkets have their own rules. For example I got a credit card from mbna no questions, but just applied for an Amex rewards card but they want to make more checks on my application. Also Tesco rejected me for a current account twice with no overdraft, and halifax clarity gave me a card, no questions.

You aren't the only one, Tesco have shunned me on every application I ever made - I suspect it is the late payment markers in my case but the responses are always along the lines of "We've identified some adverse information from Experian" - which is fine, but only if they'd elaborate a bit more then that would be great.

In any case my relationship with Nationwide is fantastic, the Barclaycard is great too especially with the limit increases although I barely tend to use more than 30/40% of the overall limit.

I'll get the Capital One card closed this coming week and I'll have a look at submitting an MBNA application.