This is a question about credit behavior.
I asked a credit line in an electronic store to buy a $1,600 TV set under their promotion of no-interest for 3-yrs. They approved my application, but only for $500 limit, thus I did not buy the product. I want to cancel this account but have some questions before:
- An account opening like this one reduces the credit score? I would like to know if an opening like this could have reduced my score.
- If I cancel this account tomorrow, just 2 days after opening it, and without using it, will this affect my score?
Many thanks.
2006-09-05 10:45:09 · 4 answers · asked by jobmz 1 in Business & Finance ➔ Credit
Canceling right away would lower your score some. So does never using the card, because they don't know if you're a good credit risk or not without you using. Also opening too many credit card accounts will hurt your score. What I'd do is just keep it, use it for just small everyday stuff and pay it off every month. They will increase the limit some months in the future if you keep it in good credit. Do make sure not to ask for credit increase a lot though, that hurts the score as well.
2006-09-05 10:53:54 · answer #1 · answered by shadowsonic2004 4 · 0⤊ 0⤋
Just the fact that that store checked your credit rating counts against you.
You should have declined it on the spot. That way you could write to the credit agencies and add a letter to your credit file saying that it was canceled at your request since it was not a good card for you.
If you keep it open and want to get a loan at some future time they will say that you might run out and charge $500 on that card and reduce the ratio of income to debt to below the approval ratio they like. (Sovereign Bank does that on a home equity loan.)
2006-09-05 17:50:07 · answer #2 · answered by Rich Z 7 · 0⤊ 0⤋
do not cancel this new account, keep it and purchase small items to build your credit with this store, about 6 months look for them to offer you a larger credit line[ charge small and pay on time] most stores open with $200.00 so $500.00 is good to start. this will be good for building your credit , keep it and grow slowly
2006-09-08 23:32:46 · answer #3 · answered by walterknowsall 5 · 0⤊ 0⤋
Don't close it. Just keep it open and have no balance on it. There is no effect that way. Close it and there could be an effect.
2006-09-05 17:49:50 · answer #4 · answered by yes_its_me 7 · 0⤊ 0⤋