the other day i went to Canadian tire and there was a lady there giving out cards that said you get $10 off gas and i blindly signed up. but as it turns out it was for a credit card!!!!
what should i do??
they already mailed me the card.
will this lower my credit rating?
2007-07-31 09:08:42 · 18 answers · asked by zzzzzz 2 in Business & Finance ➔ Credit
Congratulations, you lowered your credit score 5 points. (for the credit inquiry made to open the new account). It's not a big deal. I would call the 800 number on the back of the card, tell them that you want to cancel the card, and then cut up the card. You score will be down 5 points, and recover in a couple of months.
Unless you were right on the cusp of a cutoff and are applying for a big loan (like a mortgage) there's nothing to worry about.
Below is an answer from the FAQ section of myfico.com (the inventor of the FICO score)
"Fallacy: My score will drop if I apply for new credit.
Fact: If it does, it probably won't drop much. If you apply for several credit cards within a short period of time, multiple requests for your credit report information (called “inquiries”) will appear on your report. Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score.
"
2007-07-31 09:21:00 · answer #1 · answered by Michael K 5 · 0⤊ 0⤋
If you've gotten the card, call the 1-800 number on the back of the card. If you don't have a card, find the customer service number on the card company's website. Call and tell them what happened. It shouldn't change your credit rating much. Especially if you don't charge up a huge amount. Actually, if you want to improve your credit rating use the card, keep a SMALL balance ($100 or less) or pay it off each month. But only use it if you think you can handle it. I got myself in some trouble with credit cards in my early 20's. Keeping a credit card responsibly increases your credit score. My score shot through the roof when I started paying off my cards aggressively. I'm 31 and I just bought my first house all by myself! Good luck!
2007-07-31 16:14:47 · answer #2 · answered by Sarah S 2 · 0⤊ 0⤋
You should not close the card because closing credit accounts early will lower your credit score. You should however take the opportunity to build your credit by buying a small amount of merchandise with them every month (Couple of dollars works ok) and then paying off in full. This will cause your credit to increase every month due to the fact you are showing a track record of responsible card utilization, paying creditors, having established accounts.
2007-07-31 16:13:32 · answer #3 · answered by CompLLC 2 · 2⤊ 0⤋
It should have come with a grace period during which you can cancel without any penalty. Read the fine print.
If you keep it and use it at least once, then PAY IT OFF immediately, it will actually HELP your credit rating. But unless you really, really, want a credit card I don't advice keeping it forever. They'll kill you with interest charges and fees.
2007-07-31 16:17:06 · answer #4 · answered by suedeenim 6 · 0⤊ 0⤋
When you receive the card, cancel the account via regular mail (don't phone, don't just cut up the card, don't email) and request written confirmation of the account being closed. Then keep copies of your letter and the confirmation with your important papers.
Immediately closing a new account won't really impact your credit score much and it will rebound quickly.
2007-07-31 16:41:44 · answer #5 · answered by bdancer222 7 · 0⤊ 0⤋
It would actually raise your points since there is no balance on the card. For your own sake, I do advise that you don't use the card at all. Definitely cut it up or put it away. Then depending on how you feel and I can see that you feel strongly, call the company to cancel the card.
It's no big deal , really.
2007-07-31 16:14:21 · answer #6 · answered by casw1 4 · 0⤊ 0⤋
As long as you dont use it you will be ok. I would get ahold of the company and tell them you did not realize it was a credit card and you want to cancel it...make sure they know it was misleading in the presentation...
2007-07-31 16:13:40 · answer #7 · answered by rowdysunsetart 5 · 0⤊ 0⤋
Just don't use the card it will do nothing to your credit unless it has an annual fee.
2007-07-31 16:11:52 · answer #8 · answered by DeputySpade 1 · 0⤊ 0⤋
Call the company and cancel the account.
2007-07-31 16:11:35 · answer #9 · answered by ? 6 · 0⤊ 0⤋
you have to activate the card. if you never activate it will never be on your credit report. unless you accidentally call the number and activate it.
2007-07-31 16:14:56 · answer #10 · answered by cashmaker81 6 · 0⤊ 0⤋