Posted on: 19th Feb, 2008 04:20 am
I had applied for a credit card and then canceled it. Does it affect my credit?
yes, janice, the mere act of applying for the card will have an impact on your credit report - how much is difficult to determine, as it depends on your existing credit file and a great many other factors. overall, this should not have a large impact; and certainly not a lasting one.
Depends if the creditor is reporting this account on your credit report.
Sometimes they wait 30-45days after the account is open to report a new account.
Applying for new credit can lower your score by 3-7 points, and maybe more if you have been applying every month.
Make sure that the credit report is showing 'Closed by consumer', and not 'Closed by grantor/creditor'. This will show that it was your decision to close this card, and not the creditor.
Sometimes they wait 30-45days after the account is open to report a new account.
Applying for new credit can lower your score by 3-7 points, and maybe more if you have been applying every month.
Make sure that the credit report is showing 'Closed by consumer', and not 'Closed by grantor/creditor'. This will show that it was your decision to close this card, and not the creditor.
Thats what I do when I pay off a card. I recently went down to having just two credit cards and got rid of the store account ones due to the interest rate. I always make it clear that I want it to be "closed by consumer". I checked my report and it is always reported that way. Its hard to believe but alot of times you need to stress this factor to make sure it doesn't haunt you later.
I know a lot of people will leave accounts open to keep thier rating up, but what if you are paying a yearly maintenance or a monthly fee on the card? Is it really wise to keep it open? I wonder if it is worth the costs?
That does really depend. That is how I got in trouble with a card. The yearly fee through it over the limits and it was a roller coaster from there. Some of those fees are astronomical. Like $99. Also read the fine print..a lesson I well learned..They tell you one thing one the phone and if you don't read closely they'll catch ya. Mine was suppose to be a one time fee. Suppose to be but WASN'T.
That is where they always get you, the fine print, got to read that stuff, thing is, it is all contract.
Yep. They catch ya every time. I'm chalking it up to a lesson learned.
The fine print is what they don't tell you on the phone, LOL.
True I would never advise anyone to agree to anything over the phone.