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URL:  http://boards.fool.com/ive-been-had-14065131.aspx

Subject:  I've been had Date:  1/9/2001  12:19 AM
Author:  Kazim Number:  53481 of 312188

Well, Capital One is trying to rip me off to the tune of $29 per year and I am wondering whether to accept it or fight it. I know that sounds like a silly amount to worry about on this board, where some people are trying to pay off tens of thousands of dollars at 15% interest or more, but it's the principle of the thing that bugs me.

Let me explain. I have good credit. My wife has more or less nonexistent credit. I want her to improve her credit, so I decided that the best thing would be for her to get a low limit credit card that we pay off every month. I've had good experiences with my Capital One Platinum card, though I know some people on this board don't like cap1 very much. Anyway, I decided to check with Capital One and see what kind of card she could get.

I went to their web site and filled out an online form in her name. My intention was to get an offer, see what kind of terms they could give, and based on that, decide whether to shop elsewhere. When I finished filling out the form, they told me they were sending me a card with a $500 limit, 19% interest rate, and $29 annual fee. "The heck with that," I said, but then I noticed that they said the card would be mailed right away.

I called the card company, and said I made a mistake. They told me that they couldn't cancel the card until it arrives, and my wife will have to call since it's in her name.

So now I have the card, and I am wondering whether I want to go to the trouble of cancelling it. Since we will be paying it off in full, the 19% interest rate shouldn't matter too much, but I don't like or need yearly fees. It also makes me kind of mad that they just sent the card without even asking for a confirmation or anything. However, I am concerned that if I just cancel it without paying, it will hurt her credit. Also, I don't know for a fact that she can do better anyway, until she's improved her standing.

So, as I see it, here are the arguments for keeping it or cancelling it.

CANCEL:
* The fee is unnecessary and a ripoff.
* They sort of conned me into taking it, and I don't appreciate that.

KEEP:
* The card's already here; might as well start using it - it's easier than filling out more applications.
* The interest rate is irrelevant.
* The fee is not really that much.
* Maybe she can't do better anyway.
* It might damage her credit if she just ordered the card and immediately cancels it.


Any more thoughts? Keep or cancel?
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