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Old Aug 20, 14, 12:58 am   #1
 
Join Date: Jul 2014
Location: SoCal LA
Programs: Chase Ink Bold, Amex Gold
Posts: 19
Getting an extra $48 when closing capitalone card!

By a strange concatenation of events, it seems I may be making $48 when closing my capitalone rewards card.

Here are the events:

1) Had no idea about miles/credit cards etc. So had one credit card - capitalone mastercard rewards - 1% rewards (essentially cash back) for everything. Life was simple!

2) Had an upcoming Hawaii trip this month (got back last week) and so booked hotels on this card around June ~ $3200 on this card.

3) Discovered the wild world of FT at the end of July. Got completely addicted in about 2 days. Was reading page 478 of the bluebird thread on day 5 of this discovery!

4) At this point, my cash back for capitalone was around $89. Applied all of it to paying the card. Also, paid the card in full.

5) Applied for a bunch of CCs, most notably Chase Ink Bold. Transferred all spend to various CCs.

6) To meet the minimum spend on CIB, I called up the hotels in Hawaii to refund on capital one and charge on CIB (and others). They accepted. Negative balance on capone around $3200. Rewards balance around -$48. (Not sure how it is -$48, should be somewhere around -$32).

7) Called in to close the card. Agent said they will send a check for the whole amount ~$3200. Checked the account today and it says - account closed, balance $0 and rewards still show -$48.

Will report back when I get the check if the $48 were deducted from it or not.
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Old Aug 20, 14, 2:00 am   #2
 
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If Capital One will let you reopen the account, I recommend doing so.

One of the basis for credit scores is the oldest account. Capital One is a card without an annual fee. It will help your credit score to keep it open.

That is worth much more than $48.

My $0.02.
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Old Aug 20, 14, 5:51 am   #3
 
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Why not just leave your account open and upgrade to Quicksilver? It's just as free and cashback is 1.5%.
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Old Aug 20, 14, 9:04 am   #4
 
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Yea I'm pretty sure they will be taking that back. If not, you made a whole $48. Head over the to the MS forum and get your feet wet.
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Old Aug 20, 14, 10:48 am   #5
 
Join Date: Jul 2014
Location: SoCal LA
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Quote:
If Capital One will let you reopen the account, I recommend doing so.

One of the basis for credit scores is the oldest account. Capital One is a card without an annual fee. It will help your credit score to keep it open.

That is worth much more than $48.

My $0.02.
Quote:
Why not just leave your account open and upgrade to Quicksilver? It's just as free and cashback is 1.5%.
Will they let me reopen/upgrade without a hard pull now ? Also, I have an auto loan and a huge mortgage that I pay on time every month so I thought I'm good with my credit history. Will credit card stuff still matter in deciding my credit score?
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Old Aug 20, 14, 2:14 pm   #6
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Originally Posted by paragffm View Post
Will they let me reopen/upgrade without a hard pull now ? Also, I have an auto loan and a huge mortgage that I pay on time every month so I thought I'm good with my credit history. Will credit card stuff still matter in deciding my credit score?
Yes, credit card stuff matters A LOT in deciding your credit score. Please learn a lot more on this topic before you go hoggish on your new found passion of getting boatload of new cards in very short period of time.

Read this thread to see what could happen:
[Consolidated]Chase closed my CC account(s)

The last few pages should be your eye-opener.

On the mysterious $48 refund, my suspicion is, your 1% Cash Reward Mastercard has the 0.5% annual bonus feature.

When you cancel the card, the system gives you the 0.5% bonus as part of the card closing calculation.

Personally I would call up CapOne and ask the rep what to do with the $48 negative balance in the Reward account just to avoid any potential issue down the road. The last thing you want to see is, CapOne transfers the -$48 to your closed account and then treats it as a Pass Due amount... You never know how bank would do strange thing, especially on a refund that impacts previously redeemed reward. The gist is, when you paid in full, you actually pay with the $32 credit earned from the $3200 charge. Now the $3200 charge was reversed, the $32 credit should also be reversed - but since the redemption is NOT an automatic process, the reversal just sitting on the reward side - until, if there is, an audit on closing account is performed.

I were you I would SM CapOne to clarify the matter and offer to pay back the $32 credit.

If you have the 1% MC card long enough, you would be automatically qualified for the 1.5% QS.

I would keep the CapOne card as it is a no fee card and their customer services actually not bad despite all the bad rep people are giving to CapOne, largely for their handling of the sub-prime low end, and even secured credit cards for people with poor credit scores.
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Old Aug 20, 14, 2:47 pm   #7
 
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Quote:
Originally Posted by paragffm View Post
Will they let me reopen/upgrade without a hard pull now ? Also, I have an auto loan and a huge mortgage that I pay on time every month so I thought I'm good with my credit history. Will credit card stuff still matter in deciding my credit score?
You wouldn't have this many people suggesting you reopen the account if it wasn't worth it.

If it has been less than 30 days, there is a good chance they will reopen it. You can say you saw how valuable the card is, and changed your mind. Ask about the pull if you want. I would reopen regardless. I would also verify that the original opening date was on the account since it is the age of the account that is important to your credit score.

The pull is a short term consequence. This is a marathon, not a sprint. The big picture is more important than the pull here. If they do a pull, then consider it the price for the learning experience. There are worse things that can happen.

Finally, Happy has a good point. $48 is 1.5% of $3200. So if you have the additional 0.5% annual bonus, the entire $48 is probably the cash back from that transaction.
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Old Aug 20, 14, 4:25 pm   #8
 
Join Date: Jul 2014
Location: SoCal LA
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Quote:
Originally Posted by Happy View Post
Yes, credit card stuff matters A LOT in deciding your credit score. Please learn a lot more on this topic before you go hoggish on your new found passion of getting boatload of new cards in very short period of time.

Read this thread to see what could happen:
[Consolidated]Chase closed my CC account(s)

The last few pages should be your eye-opener.

On the mysterious $48 refund, my suspicion is, your 1% Cash Reward Mastercard has the 0.5% annual bonus feature.

When you cancel the card, the system gives you the 0.5% bonus as part of the card closing calculation.

Personally I would call up CapOne and ask the rep what to do with the $48 negative balance in the Reward account just to avoid any potential issue down the road. The last thing you want to see is, CapOne transfers the -$48 to your closed account and then treats it as a Pass Due amount... You never know how bank would do strange thing, especially on a refund that impacts previously redeemed reward. The gist is, when you paid in full, you actually pay with the $32 credit earned from the $3200 charge. Now the $3200 charge was reversed, the $32 credit should also be reversed - but since the redemption is NOT an automatic process, the reversal just sitting on the reward side - until, if there is, an audit on closing account is performed.

I were you I would SM CapOne to clarify the matter and offer to pay back the $32 credit.

If you have the 1% MC card long enough, you would be automatically qualified for the 1.5% QS.

I would keep the CapOne card as it is a no fee card and their customer services actually not bad despite all the bad rep people are giving to CapOne, largely for their handling of the sub-prime low end, and even secured credit cards for people with poor credit scores.
So called the CapOne CSR. They said they cannot reopen the account even to upgrade and I'll need to reapply online or via phone. So seems to me that this'll be treated as a new account anyway. So was thinking it is best to lay low and not apply for any more credit cards.
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Old Aug 20, 14, 4:26 pm   #9
 
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Also, asked them about the -$48. They said they can't do anything about it and not to worry about it.
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Old Aug 20, 14, 4:37 pm   #10
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Originally Posted by paragffm View Post
Also, asked them about the -$48. They said they can't do anything about it and not to worry about it.
Send them a SM to get the reply IN WRITING - this is a precaution I would take to prevent any later issue, because now you would have the confirmation IN WRITING that you would not need to pay back the $48.
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Old Aug 20, 14, 4:51 pm   #11
 
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My post before the post #8 seems to have got lost.
I called them about reopening/upgrading to QS but they said they cannot reopen this account and I would need to reapply for QS (online or on phone). So seems it's just going to be a new account with hard pull. Since I don't need a QS at all, I am thinking of not applying again. Thoughts?
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Old Aug 21, 14, 4:35 pm   #12
 
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Your best shot is to call back and try your luck with a different agent. Other than that, it sounds like the decision has been made for you.
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Old Aug 22, 14, 11:42 am   #13
 
Join Date: Mar 2013
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I would call them and enquire about discrepancy again.
If random audit happens things might not got well.
Don't want anyone come back poking for such a simple thing.
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Old Aug 22, 14, 12:47 pm   #14
 
Join Date: Jul 2014
Posts: 8
If you want the account re-opened, I would also send a secure message asking for that as well. Can't hurt.
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