I was just getting ready to call Visa up to cancel my credit card since I don't use/need it anymore, but today I received my new card in the mail. If I don't renew it, will I get in any sort of trouble with Visa? I was just wondering since this may save me some time with them over the phone.
2006-08-08 11:30:38 · 6 answers · asked by midnightslasher83 1 in Business & Finance ➔ Credit
Cards autorenew usually but why cancel it? Just don't use it. By keeping a card open you "age" the account which will help your credit score.
2006-08-08 12:33:36 · answer #1 · answered by Jim R 5 · 0⤊ 0⤋
To answer your main question, VISA or your bank will not go after you if you do not activate the new card. However, your account won't just go away by not activating the new card either.
Like other's said previously, it's a good idea to keep your old accounts open, even if you aren't using them because two components of your credit score can be affected by closing the account.
1) Credit HIstory Length: 15 percent of your score is based on how long you have had your current accounts opened. Established accounts are look upon highly while new accounts hint at instability and inexperience.
If you close one of your older accounts all that's left to determine credit worthiness are the newer accounts. Your score will take a hit because of that.
2) Amount of credit used: This amounts to a whopping 30% of your score. If you close an account, that lowers the ceiling that you can reach in revolving debt. Your balances on other cards are now comprise a higher ratio of debt/available credit.
So, to conclude, just keep the bankcard account open and you should be fine.
2006-08-09 00:19:50 · answer #2 · answered by Jesse 4 · 0⤊ 0⤋
You wont get into trouble with visa. Not renewing your card in effect just cancels it.
It does effect your credit rating slightly since a small part of your credit rating is the available amount of credit vs what you owe.
But not worth worrying about.
2006-08-08 18:37:15 · answer #3 · answered by mslider2 6 · 0⤊ 0⤋
I would still call and request to the cancel the card. Also, ask for a letter from the credit card company stating that the account is closed. That way if it should somehow still show up on your credit report (because we've all heard of these inaccuracies on the credit bureau reports), you have a letter from the company stating that its closed.
2006-08-12 10:27:22 · answer #4 · answered by Anonymous · 0⤊ 0⤋
According to Suze Orman, it's best that you keep your unused credit card activated because it makes it look like you're not using a lot of your credit limit which is great for your credit score. But going back to your question, no it doesn't matter whether you renew it or not. =)
2006-08-08 18:38:00 · answer #5 · answered by omsgarcia 1 · 0⤊ 0⤋
your account will still be open until you cancel it. if you have the card sitting around and don't use it. your account will still be open. if in 2 months you pick up that card and activate it, it will work unless you call them to cancel your account.
2006-08-08 18:39:14 · answer #6 · answered by anonymous 6 · 0⤊ 0⤋