I learned an interesting fact from a helpful AMEX account rep. I was pleading my case with her about my recent denial. She had my Experian report in front of her and knew all my gory details. She told me that I was a shoe-in for an AMEX Green, if only I had an open trade line over 2 years old. All of my accounts basically turn 2 in Oct-Dec time frame. I started my rebuilding journey in the fall of 1998. What a blessing that nugget of info has become. I was in the process of closing all of my small limit sub-prime cards. Most of which were the ones getting ready to turn 2 years old. So she advised me to keep at least 2 of them open. I had almost made a dreaded error in closing those accounts. I asked her if the fact that they were sub-prime would hold anything against me? And she said of course not. They just wanted to see some long term history. She told me to reapply in the fall and is certain it would be approved. And she also gave me a hint: If you want to be able to "sweet talk" an AMEX account rep into approving you after a denial, then apply for the Optima Platinum. Their reps have account approval override authority. (My guess is they like the higher interest and for you to carry balances) So I will try for that card first in the fall. As you progress into the prime world, remember to not to act too fast into closing those old sub-prime accounts. They do certainly show a long term credit history that is an open trade line! Good Luck, BarryN CreditManiac
RE: Tip about closing accounts Barry - in 60 days it'll be in your mailbox. We know that! AMEX is the best. And you know that too. Dogman
Very Helpful Information Barry, Thanks for the very helpful information. I hate my own subprime cards (although I have others) and have slowly realized that I may need to keep some of them for a few years, both for the external credit history and the internal customer relationship. Some of these banks may give me a good deal in a few years. I just don't know ahead of time which banks will do so, so I need to keep several accounts open and hope for the best.
RE: Tip about closing accounts Thanks once again, Barry, for providing a gem that will be helpful to a lot of people. I'm sure it will help a lot more people if you add this bit of information to the Creditmania website. Your conversation with this customer service rep. has certainly cracked a mystery that has baffled a lot of people.
RE: Tip about closing accounts I am glad that I read the above posts as I gotten two more visas in the mail, and thought about closing the other three visas. I talked with one of the bank rep's friday and he said the same thing...Use the card for a few months, then throw it in the safedeposit box or another place for safety. Then pay down on it or just pay it off. Let it ride for 24 months then call us back to close the account. That way you are showing a strong credit trade-line history. I have a Circuit city card I haven't touched in 6 years and has been showing a open account. That is what has been getting me approved for other credit card offers. Even though I thought I closed the account back in 1996. But CRA's says it is still active...Thank God it shows R-1. (Usually pays within 30 days)
RE: Tip about closing accounts I was gonna cancel my Capital One Card, I guess I will keep it. I had been thinking it was a liability with that "Cap One" name and low limit. Thanks Barry.
RE: Tip about closing accounts Thanks Barry! I nearly close my Capital One card this week... and opted not to.
RE: Tip about closing accounts Damn, Barry! You might not realize this, but you saved Capital One from losing a bunch of accounts this week. I think they should owe you some sort of a bonus for saving their butts ;-)
RE: Tip about closing accounts You're right about that Doris, I was comtemplating closing my account as well. I think I will keep it a little longer. Barry, go get that bonus!
RE: Tip about closing accounts Bonus!?!! These jokers won't even give me one of their $200 limit gold cards........ hehe I have no love loss for them, but I do want you all to be aware of the need for having long-term track record on your reports. Peace, Barry
RE: Tip about closing accounts I just closed my Capital One account (green card) in disgust after six years. No credit line increase for two years and an APR that has creeped upward into the 20+ range on a card with no benefits. Also Cap. One has consistently refused over the years to release the security deposit I paid when the account was opened even though I have maintained an excellent credit history on this partially secured card and my credit is good enough that citibank issued me a platinum card with a good C/L. Anyone interested in building credit would do better with Providian or Orchard. At least these banks won't keep you imprisoned in subprime hell for the rest of your life and treat you as credit impaired even though your circumstances have changed. Also, I was amazed that Capital One never asked me why I was closing the account. They have an automated system for this. Usually, if you say you want to close an account, the bank will want to know why. Not this bank though.
