2007-11-19 05:05:11 · 8 answers · asked by Jake P 2 in Business & Finance ➔ Credit
I will pay it off right away and most likely cancel it. Is it worth the ding on my credit score?
2007-11-19 05:21:27 · update #1
I do all the time. Amazing how there are credit cards that pay you to open them.
2007-11-19 05:08:09 · answer #1 · answered by airjarrod 7 · 0⤊ 0⤋
Are you planning on a major purchase in the next several months. Your score will take a hit because of the new credit, but this generally recovers in a few months. Especially if you plan to pay it off right away. So if it is going to be more than a couple of months of opening this one up before you are planning on a major purchase, this will not really harm you in the long run. If you are planning on a major purchase soon, this lower score(although minor) could be enough to cause you to get a higher interest rate.
Now, if you do get the card. It will be better if you pay it off and don't close it. This will add to your history and could actually improve your score. Ideally, you should even try to use this card for regular purchases and pay it off every month. This will continue to show activity. Just when you do this be sure to not go over 30% of the credit limit at any one time.
2007-11-19 06:34:16 · answer #2 · answered by OC1999 7 · 0⤊ 0⤋
Doing this may seem like a great way to save money, however it will have a negative impact on your credit report and could end up costing you money in the long run. eg. One day you may wish to purchase a house and can not get a good rate because of your credit report which means you are going to paying more interest on the house.
Be mindful that your credit is going to impact the rest of your life, take care of it.
2007-11-19 06:27:01 · answer #3 · answered by MommyB 3 · 0⤊ 0⤋
NO.
Applying for too much credit negatively impacts your credit score, PLUS many credit cards (store credit cards, mostly) will charge an annual fee.
If you don't cancel it in time, you could end up losing the 75 bucks to fees, etc.
2007-11-19 05:08:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋
NO WAY!!! With interest you will pay what you save regardless. And they can get out of control. I got one 2 years ago and used it for little things but it added up and now I owe 1 grand and am paying only 50 a month and the interest rate is high so I am paying twice what I purchased. If you can't afford it now, don't buy it.
2007-11-19 05:10:43 · answer #5 · answered by emirosesmommy@sbcglobal.net 2 · 0⤊ 1⤋
Yes-Then pay it off IMMEDIATELY and close the account. Make credit work FOR you not AGAINST you!!
2007-11-19 05:09:09 · answer #6 · answered by ? 5 · 0⤊ 0⤋
Sure. And then cancel it when you get a $0 statement balance. ;)
2007-11-19 05:08:37 · answer #7 · answered by redplumbbabythumb 3 · 0⤊ 0⤋
do yourself a favor and read and UNDERSTAND the fine print before you sign.
2007-11-19 05:15:16 · answer #8 · answered by oldguy 6 · 0⤊ 0⤋