Getting an extra $48 when closing capitalone card!
#1
Original Poster
Join Date: Jul 2014
Location: SoCal LA
Programs: Chase Ink Bold, Amex Gold
Posts: 91
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.
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.
#2
Join Date: Apr 2004
Programs: AA plt 2 mm, Marriott LTT, HH dia
Posts: 1,215
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.
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.
#5
Original Poster
Join Date: Jul 2014
Location: SoCal LA
Programs: Chase Ink Bold, Amex Gold
Posts: 91
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.
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.
Why not just leave your account open and upgrade to Quicksilver? It's just as free and cashback is 1.5%.
#6
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,767
Read this thread to see what could happen:
http://www.flyertalk.com/forum/chase...account-s.html
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.
#7
Join Date: Apr 2004
Programs: AA plt 2 mm, Marriott LTT, HH dia
Posts: 1,215
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.
#8
Original Poster
Join Date: Jul 2014
Location: SoCal LA
Programs: Chase Ink Bold, Amex Gold
Posts: 91
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:
http://www.flyertalk.com/forum/chase...account-s.html
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.
Read this thread to see what could happen:
http://www.flyertalk.com/forum/chase...account-s.html
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.
#10
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,767
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.
#11
Original Poster
Join Date: Jul 2014
Location: SoCal LA
Programs: Chase Ink Bold, Amex Gold
Posts: 91
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?
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?