How can I close a new credit card without effecting my credit?

Question

I got a new credit card in the mail through an airline. I didn't know I was applying for a card, I thought I was joining the frequent flyer club.

I have not activated the card. I thought about keeping it in a drawer for emergencies, but the interest is outrageous, so I want to cancel it. If I call to cancel, will that show up on my report as a closed credit card account, or would it not show up at all because I never activated or used the card?

Earlier this year, I paid off all of my credit cards and have not had an active card for 5 years. I recently got a new card with ample credit and a decent rate. Because I'm a recovering spend-a-holic. I'm fearful of having too much credit available.

To answer your question Laissez-Faire Guy, I, too agree that the activation is a scam. When I activated my other card, it was an automated process, then they patch you to a "customer service person" who wants you to buy additional services. It was hilarious b/c he was foreign and reading a script. After I kept saying no, he read the end of his script so fast, he sounded like a disclaimer in a car commercial.

Answer 1

Everything that you do with your accounts has the possibility
of effecting your credit score which is different than your actual credit. Your credit score is a calculated value, where your credit is the amount that you can actually borrow.

Congratulations on getting rid of your credit card debt. Now that you have that accomplished the last thing that you want is to go and run up more credit card debt and go right back in the hole that you worked so hard to get out of. What is important? A couple of point bump in your credit rating or getting rid of a potential risk to rack up more debt.

I applaud you for getting rid of your credit cards and I hope that you will use a good budget to keep yourself out of more credit card debt.

Answer 2

If your credit limit on the JCP is still only $500 after 13 years, you seem to be doing something wrong - like not using it. Never known an annual fee on a conventional Mastercard or Visa card unless it is a credit builder card. You should pay off and close the Best Buy, Walmart, Visa Target and JCP. That will leave you with three cards which is quite enough for the average person. Cards used regular with monthly payments always paid on time usually get credit limit increases. The lack of such increases in your case indicates non-use

Answer 3

It would show up. I would keep it only if you are planning to pay it off monthly or never use it except for emergencies. Do you have other older credit card accounts? If not, this may be a good way to start building credit. Eventually the should lower your interest rate and raise your credit limit. Fluke is wrong, it will show up since you applied and were approved....activation doesn't matter. Also, closing credit accounts drops your score 2-6 points (depending.) What matters on credit scores is having a line of credit open for a long time, with no late payments and using on a regular basis. If you never use it, younever make payments, and you never earn credit for that.

Answer 4

First, before canceling will you please do an experiment for me.

I've heard numerous reports that the card activation is a scam that the credit card companies use to pitch you additional services while waiting on the phone to get your card activated. And that the activation has nothing to do with actually activating your card for security purposes.

I've not had a new card needing to be activated since I heard this.

Could you go and buy something really cheap before activating, just to see if it will work OK?

To answer your question. It will show up on your credit report as a closed account. The effect will be minimal as you have no history with them. It will almost be as if you never had it.

Answer 5

There is no interest if you don't charge anything .
Also no interest if you pay off the total every month .

Some airline cards Do have an annual fee tho .
If it has a fee , cancel it .

Closing accounts lowers your score because it lowers your available credit sooooo
What debt you do have looks like a higher % in the debt / available credit ratio .

But , if there is an annual fee , better to loose that .

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Answer 6

As a rule, when you cancel a credit card you are erasing a part of your credit history, and lowering your debt/credit ratio.

But in your case, you barely have any history to the card. Your score will take a small hit, but within a couple of months it will restore itself.

As long as you don't plan on any major purchases in the next few months, go ahead and cancel it.

My daughter almost got sucked into an airline credit card....the application she had didn't even give details about the card. Lucky for her she was in a rush to catch a plane and told them she would mail it. I told her to tear it up.

Answer 7

Cancel it in writing and ask for confirmation that the account is closed. Your credit score took a hit when they did the credit check. But closing the account shouldn't really impact your score.

Answer 8

If you have never activated or used the card, I don't see how it would really hurt your credit.

Answer 9

NO NO NO CALL THEM AND SAY I DIDNT APPLY FOR NO CREDIT CARD. CLOSE THIS AND REMOVE IT FROM MY CREDIT REPORT AT ONCE. I AM AWARE OF MY CREDIT RIGHTS AND KNOW WHAT I NEED TO DO!!

Answer 10

as long as you owe nothing, you can cancel anything and not hurt your credit.