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Restricted credit card

By Terry Savage on August 22, 2019 | Credit/Debt

Hi Terry, I have a Capital One credit card acct. (since 1999). Acct. was put on Restricted status after I lost my job 10 yrs. ago and missed a few payments (2 maybe)

Have been on time with payments ever since & called to ask the acct be un-restricted. The help desk “script-reader” said it is restricted, and will remain restricted, and may not become un-restricted even if paid in full.
A transfer to an account manager, who said that decision is made “systematically” (!!!) and couldn’t tell me at what point an offer to re-open the account would be forthcoming, if ever.

My plan is to transfer the balance to a 0% transfer Amex; and have it paid off by Oct 2020.
My question (finally) is what affect will this have on my credit score if my oldest credit Account with a $23k limit goes away? My current credit scores are 807/814. (Trans/Equifax)

thanks..

Terry Says

First of all, you have a GREAT credit score.  I wouldn’t worry about the impact of losing your oldest card.  I have never heard of a “restricted” card –and don’t know how that would show up on your credit report.  But unless you are paying a big annual fee for that Capital One card, you could transfer the balance and leave the card open.  That seems to solve both problems.  Then if you hate paying fees for a card you don’t use, you can close that account later.  If it impacts your score, it won’t matter much — unless you are applying for a mortgage.

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