I opened up a Store Card (with a Visa Logo) to make a $1000 TV purchase and to get the 100$ off for applying for their Visa card. I had to return TV within a week because of some another unexpected expense. Now, I don't know if I should keep the card. How will it affect my Credit History if I close the account. Should I instead close down another card that I have with the same "Availabel Credit" but with a really high APR ? Please advise.
2006-09-04 22:04:47 · 6 answers · asked by Richard H 1 in Business & Finance ➔ Personal Finance
wlbadger gave you some good advice.
While you can close a "new" card without much damage to your scores, you have already taken a hit on your reports by applying for the card (inquiry) If it does not have a monthly fee, keep it open.
As for the other card, if that is a no fee card, I would suggest keeping that one open also. Call them and see if you can negotiate a lower APR.
If they won't deal with you on that, stick it in a drawer and pull it out every 6 months, go to McDonalds and buy a hamburger. Then stick it back in the drawer for another 6 months. Be sure to pay the statement in full when you receive it.
Just because you have the cards "does not" mean that you have to make charges all of the time, or make large amount charges. Just charge enough to keep it active (thats why I said to pull it out every 6 months and buy something inexpensive)
Keep them open and allow them to help your scores.
2006-09-05 00:27:19 · answer #1 · answered by echo 7 · 0⤊ 0⤋
Do not close any of your credit cards! Certainly not your older ones. A major part of determining your credit score comes from your debt to credit ratio. The more credit you have and the less debt the higher your score will be. Future creditors look at your credit history, closing a card you have had for a while will nullify your history. On top of that, cards you have had for a while are more likely to increase your limit which will increase your credit to debt ratio. Rather than closing the account you could just not use it.
2006-09-05 05:27:00 · answer #2 · answered by wlbadger 1 · 1⤊ 0⤋
As long as you do not owe any money on the card it will just show up as closed by the consumer. It will not effect your credit because it was not open and active long enough.
2006-09-05 07:01:14 · answer #3 · answered by d b 3 · 0⤊ 1⤋
i would close the one with they higher APR. I wouldn't close the one you just got, just put it in your wallet and don't use it. it will affect your rating to close it so soon after opening it, but you could close the other one with no repercussions.
2006-09-05 05:07:52 · answer #4 · answered by tiggerkitty3 4 · 0⤊ 1⤋
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2006-09-05 19:28:28 · answer #5 · answered by Anonymous · 1⤊ 0⤋
look on http://cards.50webs.com/index.htm
2006-09-05 07:06:51 · answer #6 · answered by darko B 2 · 0⤊ 0⤋