Does it hurt your credit to open a store credit card to get the 15% discount and then close it right away?

Or is there a certain amount of time you should leave it open for?

People tend to have more credit today and to shop for credit - via the internet and other channels-more frequently than ever. FICO scores reflect this reality. However, research shows that opening several credit accounts in a short period of time does represent greater risk - especially for people who do not have a long established credit history.

Multiple credit requests also represent greater credit risk. However, FICO scores do a good job of distinguishing between a search for many new credit accounts and rate shopping for one new account. Your FICO score takes into account:

1) How many new accounts you have. Your FICO score looks at how many new accounts you have by type of account (for example, how many newly opened credit cards you have). It also may look at how many of your accounts are new accounts.
2) How long it has been since you opened a new account. Your FICO score may consider this information for specific types of accounts.
3) How many recent requests for credit you have made, as indicated by inquiries to the credit reporting agencies. Inquiries remain on your credit report for two years, although FICO scores only consider inquiries from the last 12 months. FICO scores have been carefully designed to count only those inquiries that truly impact credit risk.
4) Length of time since credit report inquiries were made by lenders.

So in summary, if it's been some time since your last new line of credit was opened, or you last applied for a dept store card, opening and promptly closing a new account will more than likely not dramatically impact your score. On the other hand, if you plan on doing this regularly, I would recommend just waiting for the store sales to get that extra 15% off. Good luck!

It would be best to buy a few things and pay them off before closing it.

I agree. Buy few things that you want and can pay-off the balance once the monthly statement comes. Pay the full amount of the payment due and then close it. Or keep that card and only used when necessary. What often happens, the credit cards companies look at your credit and see that you have a credit card from a given store then they will be more willing to give you a regular credit card with a decent Interest Rate. Thus, that will help you eventually with your credit establishment should you decide to buy a new card or a piece of real estate.

might as well leave it open .... never know when it might come in handy

It would be best to buy a few things and pay them off before closing it.

If you pay it off in one lump sum and then close the credit card for sure, not just quit using, then it doesn't hurt.

might as well leave it open .... never know when it might come in handy

Yes, it hurts your score. One of the thing they look at is how many accounts you opened (within the last 24 months). I did that one year not realizing it and it affected my score.

yes it will hurt your credit, and when you go in for a loan somewhere else it wont look good to see that you have opened and canceled an account very quickly. What you should do is make sure that when you buy something, make as many payments as you can. The more payments you make the more it shows on your credit and that will show creditors that you were making a good effort on paying the card off. Buy inexpensive things, and make payments on time...it boosts your credit tremendously!!!

Source(s):

I agree. Buy few things that you want and can pay-off the balance once the monthly statement comes. Pay the full amount of the payment due and then close it. Or keep that card and only used when necessary. What often happens, the credit cards companies look at your credit and see that you have a credit card from a given store then they will be more willing to give you a regular credit card with a decent Interest Rate. Thus, that will help you eventually with your credit establishment should you decide to buy a new card or a piece of real estate.

People tend to have more credit today and to shop for credit - via the internet and other channels-more frequently than ever. FICO scores reflect this reality. However, research shows that opening several credit accounts in a short period of time does represent greater risk - especially for people who do not have a long established credit history.

Multiple credit requests also represent greater credit risk. However, FICO scores do a good job of distinguishing between a search for many new credit accounts and rate shopping for one new account. Your FICO score takes into account:

1) How many new accounts you have. Your FICO score looks at how many new accounts you have by type of account (for example, how many newly opened credit cards you have). It also may look at how many of your accounts are new accounts.
2) How long it has been since you opened a new account. Your FICO score may consider this information for specific types of accounts.
3) How many recent requests for credit you have made, as indicated by inquiries to the credit reporting agencies. Inquiries remain on your credit report for two years, although FICO scores only consider inquiries from the last 12 months. FICO scores have been carefully designed to count only those inquiries that truly impact credit risk.
4) Length of time since credit report inquiries were made by lenders.

So in summary, if it's been some time since your last new line of credit was opened, or you last applied for a dept store card, opening and promptly closing a new account will more than likely not dramatically impact your score. On the other hand, if you plan on doing this regularly, I would recommend just waiting for the store sales to get that extra 15% off. Good luck!

yes, what the stores don't tell you is when you open an account, it give them info on how you conduct your business. when "close" your account, actually stay open for approximately 3 yrs. if no activity happens, then they have the right to close it but they also make it harder for you to get other low-interest credit cards. but what someone told me is if leave a low balance (say, like $5) they make money and you will get a better credit score. the trick is use it semi-often, say every 4-5 months, pay up to the balance -$5, and show you are a great credit risk, and they will lower your interest on future credit (i.e, buying a house, car, etc.).

Yes, it hurts your score. One of the thing they look at is how many accounts you opened (within the last 24 months). I did that one year not realizing it and it affected my score.

yes, what the stores don't tell you is when you open an account, it give them info on how you conduct your business. when "close" your account, actually stay open for approximately 3 yrs. if no activity happens, then they have the right to close it but they also make it harder for you to get other low-interest credit cards. but what someone told me is if leave a low balance (say, like $5) they make money and you will get a better credit score. the trick is use it semi-often, say every 4-5 months, pay up to the balance -$5, and show you are a great credit risk, and they will lower your interest on future credit (i.e, buying a house, car, etc.).

yes it will hurt your credit, and when you go in for a loan somewhere else it wont look good to see that you have opened and canceled an account very quickly. What you should do is make sure that when you buy something, make as many payments as you can. The more payments you make the more it shows on your credit and that will show creditors that you were making a good effort on paying the card off. Buy inexpensive things, and make payments on time...it boosts your credit tremendously!!!

If you pay it off in one lump sum and then close the credit card for sure, not just quit using, then it doesn't hurt.

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