Should I ditch my old Cap 1 card?

jimbo26

I have had a Cap1 Classic CC for about four years after some financial difficulties. It has served me well, however it's now time to move on. Just been approved for PayPal CC @ 16.9%.

The question is my Cap 1 CC has two late payments, one last year and one two years ago. If I close the account now these will show for the next six years. Should I keep the card for another two years to let those late payments drop off before closing it?

If I keep the card how long will they keep it open with zero activity? I know I could stick a few quid on it each month, but can't be bothered with the hassle.I would rather cut the card up and let it run its course.

Any advice gratefully received.

skyrider007

Everything will stay on your report for six years even after you've closed (settled) your account.

I suggest you keep the card for the benefit of getting two free credit reports a year with Equifax. Cut the card up if you don't want to use it. But using it once a month and set up a direct debit to pay off the bill in full won't hurt and may improve your credit score even further.

PROLIANT

jimbo26 wrote: »

I have had a Cap1 Classic CC for about four years after some financial difficulties. It has served me well, however it's now time to move on. Just been approved for PayPal CC @ 16.9%.

The question is my Cap 1 CC has two late payments, one last year and one two years ago. If I close the account now these will show for the next six years. Should I keep the card for another two years to let those late payments drop off before closing it?

If I keep the card how long will they keep it open with zero activity? I know I could stick a few quid on it each month, but can't be bothered with the hassle.I would rather cut the card up and let it run its course.

Any advice gratefully received.

Keep the card, it will come in handy just incase.

jimbo26

skyrider007 wrote: »

Everything will stay on your report for six years even after you've closed (settled) your account.

I know, but if I keep the card open for two years and then close it it will show green 0's for the last three years. If I close it know it will show 2 status 1's in the last three years.

Bluerover

Then leave it open and spend, only your petrol money on it and set up a direct debit to pay it off in full every month...say approx £45 petrol every month or something simple.
Its what I have done with my Vanquis card. £45 a month petrol DD paid in full 1st every month. Happiness.
The choice is yours.

Karl.H_2

skyrider007 wrote: »

I suggest you keep the card for the benefit of getting two free credit reports a year with Equifax..

What do you mean?
Thanks.

NickX

jimbo26 wrote: »

my Cap 1 CC has two late payments, one last year and one two years ago

A couple of late payments won't really have any detrimental effect on your ability to get credit IMO.

Its when there are continual late payments, defaults and a general impression that the debtor is going to struggle to make repayment when things get tricky.

skyrider007

Karl.H wrote: »

What do you mean?
Thanks.

http://www.equifax.com/consumer/capitalone/en_uk

Don't ditch the card

jimbo26

Thanks, I have reduced the limit to £500, and will use it each month to keep it ticking over.

Karl.H_2

skyrider007 wrote: »

http://www.equifax.com/consumer/capitalone/en_uk

Don't ditch the card

Thanks for that. I have Cap1 and this free service is very useful. :beer: