Cancelling credit card?

[J.M.]

I applied for a credit card and got approved for it but I haven't received the card in the mail yet. I was told I would get it in between 5-7 days. I regret applying for it because I don't really want/need it anymore.. :banghead: :facepalm:

Would it be a bad idea to close the account before I even get the card? Or should I wait until I get the card in the mail then just cancel it without ever activating it?

[JustinMCS]

http://www.bankrate.com/finance/credit-cards/should-you-cancel-an-unused-credit-card.aspx

[J.M.]

Thanks :thumbsup:

[dj_rice]

As stated, cancelling a credit card is bad for your credit score and looks bad on your credit report when lenders take a look.

Being that this is a card with no credit history on it yet, I'd run a credit report and see what your score at is currently and see if its feasible to cancel and then try to re-bring it back up by paying your balances on your other credit cards for the next year.


If not, throw it in the safe or sock drawer and don't use it. Depending on what company it is, they may charge you a in-activity fee so maybe once a month, go to the loonie store and buy some gum with it and then pay it off.

[roopi]

I've never heard of a card charging an inactivity fee. But as mentioned if there is no annual fee or inactivity fee just keep the card and don't use it. It's better than cancelling it.

[kenny]

Cancelling a credit card with zero history will have next to no effect on credit score. Go and cancel it.

It only matters when you're cancelling a credit card with years of history or one that has a huge credit limit as it'll mess up your ratios.

[JLau]

Originally posted by kenny
Cancelling a credit card with zero history will have next to no effect on credit score. Go and cancel it.

It only matters when you're cancelling a credit card with years of history or one that has a huge credit limit as it'll mess up your ratios.

exactly. If you have other established credits already, this is not gonna affect you in any way. If you dont have other established credits, keep the card to build up your credit

[roopi]

Originally posted by kenny
Cancelling a credit card with zero history will have next to no effect on credit score. Go and cancel it.

It only matters when you're cancelling a credit card with years of history or one that has a huge credit limit as it'll mess up your ratios.

I wasn't aware of this. However what's the point of cancelling the card? You applied and were accepted. Just don't use it instead of 6-12 months down the road you decide you do need another card and then have to reapply resulting in them checking your credit history again.

[msommers]

Originally posted by kenny
Cancelling a credit card with zero history will have next to no effect on credit score. Go and cancel it.

It only matters when you're cancelling a credit card with years of history or one that has a huge credit limit as it'll mess up your ratios.

This is interesting as I asked this specific question to someone at Scotia about cancelling a VISA I have and she actually went and checked with someone else, coming back saying that cancelling has no effect on your score at all. Now I'm more confused as what she told me was the opposite of what I was expecting!

[J.M.]

I just pulled my credit report and the CC company made an inquiry about my score. I'm going to cancel it right now.

[SpecR-Motorsports]

Originally posted by J.M.
I just pulled my credit report and the CC company made an inquiry about my score. I'm going to cancel it right now.

How else did you think they would issue you a cc?

[flipstah]

Originally posted by SpecR-Motorsports


How else did you think they would issue you a cc?

Derp.

[J.M.]

Originally posted by SpecR-Motorsports


How else did you think they would issue you a cc?

Sorry, bad choice of words. Don't know what I was thinking when I posted that.. Card has been cancelled and I've learned my lesson with these store credit cards.

[FraserB]

Didn't look at last posts.

[revelations]

There are cases where cancelling a CC may hurt your FICO score, but help your debt-equity ratio ..... no straight answers it seems:banghead:

[EK69]

There is no negative to having a credit card and never using it, right?

[Mitsu3000gt]

Originally posted by EK69
There is no negative to having a credit card and never using it, right?

Not if it has a yearly fee like many of them do. Then you're paying for nothing afaik.