Which is better: cancelling a credit card or closing the account on a credit card....?

Question

I recently activated a credit card. i applied for it because i was supposedly getting a good interest rate. i get it in the mail and it is not what i signed up for. so i want to get rid of it. i was just wanting to make sure that it will not affect my credit or credit score. i have charged nothing on it and have had it for 5 days. someone please help

Answer 1

The general rule of thumb is you never close a credit card, because you are erasing a portion of your credit history and messing up your debt/credit ratio. I usually recommend never canceling a card.

But your case is different. You have not had the card long enough to impact your credit (other then the inquiry, big deal). It usually takes about 6 months for any effect to happen.

So out of principle you may want to cancel the card. But I certainly would be doing some complaining...tell them to give you the deal you originally signed up for or the can cancel it. I would do it within the 30 days you activated the card.

Answer 2

Hey!

Alright, here are my two cents:

dimples is right. The inquiry that was made when you applied for the card has already been stamped on your credit report and has brought your credit score down. No need to worry though! This happens every time that anybody applies for a credit card and will heal itself in time...

+You should definitely call the bank that issues the card and tell them that you are unhappy with the terms of the card.

My suggestion is that you keep the card. Don't cancel it. Use it once or twice and pay it off. Don't use it after that! Shred it if you have to... Keeping the account open and in good standing will look good on your credit report and raise your credit score.

Let's say that this card (Card A) has a $1,500 limit.
A second card (Card B) that you have has a $1000 limit. When you carry a balance of $500 on Card B, your TOTAL debt to credit ratio will be low. You would only be using 20% of your available credit (500 out of a total of 2,500). If you were to cancel Card A, then you'd shave off $1500 off of your available credit and are now using 50% of your total credit limit!! (500 out of 1000) THAT doesn't look good.

You should consider having a good, low debt to credit ratio because 30% of your FICO score is based on it.

Answer 3

The card already impacted your credit as the inquiry itself pulled down your score. Also, the new credit entry will reduce your average credit time down and also have its own implication.

You should contest the terms of the credit card and seek the better rate. They usually have room to negatiate the rate down.

Answer 4

Sound as you got sucked into Capital One . Call them tell them you dont want the card , Cancel it , it takes 30 days to have this done.And NO it will not efect your credit rateing, I Know they say a % But they do,nt tell you what tey add for there cut. Who,s got there hand in your pocket????????/

Answer 5

Anytime you cancel a credit card or close the account it will always hurt your credit score - it's just another way the system really hurts us as consumers.

Answer 6

if you havent activated it yet or used it just call the number on the back and it will be as if it never happened. cant show up if it is not activated.