paynemdp
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This is most common MISTAKE we see people make. Your intentions are well-intentioned....to save a little money off a store purchase.
However, please be aware of whenever you apply for credit, regardless of your motivation, you LOSE points off your credit score.
How many?
Typically, every 3-5 inquiries steal approximately 12-36 points off your credit score. If you have a 720+ FICO, this is not a big deal.
However, if you're going from store to store "earning" your discount, your FICO will suffer and you'll end up paying MUCH more in credit "costs" .
One other point relating to your question: If you have "seasoned" credit accounts -- even if you're not using them -- do not cancel them.
15% of your FICO stems from length of your credit history.
For this card, you might as well cut up the card and send a letter to the issuer requesting they report your canceled account as closed by applicant.
Make it clear YOU closed the account.
Whatever your age, maintain at least 3 active "trade" (credit) listings.
Get credit early, maintain it, and don't close it.
If you're interested in learning more about credit (saving money) and fixing your damaged credit, sign up for our free credit repair training (no strings attached...free means free).
Hope this helps,
Mike |
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shell7024
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If you want to keep the account for emergencies only, find a heavy duty waterproof ziplock bag fill it half way with water and put the card in it. Place it all in the freezer. You'll still have the card but will think twice about using it if you have to wait for it to defrost. |
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dances with unicorns
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I suggest using the card a couple of times to buy something you would have paid cash for anyway - maybe once every six months - and then paying it off IMMEDIATELY. That way, you build up good credit, you have the card in case of emergency, and you don't owe anybody any money in interest. |
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juli o
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Credit Card Debt Management: Credit cards are a great source of availing credit to meet your requirements. But they can lead to a debt trap from which you will find it difficult to come out. Hence you need to keep a close watch on your credit card expenses minutely |
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woodtigerdp
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OK HERE IS THE DEAL, IF YOU CLOSE IT IT WILL AFFECT YOUR CREDIT, IF YOU LEAVE IT AND NOT USE IT, THEY WILL CLOSE THE ACCOUNT AND AFFECT YOU CREDIT, YOUR BEST BET IS TO USE IT ONCE IN A WHILE AND PAY AS YOU SPEND. GOOD LUCK!!!! |
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Barry DaLive
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Give it to me and I'll take care of it for you........no really I don't mind. |
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shotgun
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I'm no expert in this arena, but from what I've read from the credit bureaus published information, just having credit available even if you don't use it, can hurt your credit score even though that makes no sense to me. If that is true, then it stands to reason that just cutting the card in half, does nothing to reduce the credit available to you, and you might be better off cancelling the account entirely.
Hopefully, someone with more knowledge than I will respond to your question and either confirm or dispute what I've told you. |
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will_crozier
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If you can trust yourself, and have some self control, file the credit card away and leave the account open. It will help build positive credit to have it open. If you already are established and have good credit, then you can close the account without it hurting you. |
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marvin
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If you just chop up the card the account is still open and you will get monthly statements, could get scammed too. Closing an account can lower your credit score but depending on other factors it could increase it.
It's up to you but to keep from getting into more debt, close the account. |
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Peggy K
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I'd give it back to them and close the account. My grandmother had several credit cards and refused to pay the annual fee they charged because she said she hadn't charged anything on them. But that didn't stop the fees from piling up. She had to pay the fees before she could cancel the cards. Bad news!! Just close the thing and be done with it. Why take chances? |
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kenmauiphoto
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Cut the card up and throw the pieces away. Now you don't have to worry about losing it, you will still get mail from the department store and maybe you might buy something again. |
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jezbnme
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keep the account open but put the card away |
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J. Charles
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If you're not intending using the card or Credit in the store again-
I recommend that you shred the card,and next time the store write you-Call them and cancel account.
This means that You can technically re-apply for the same card at another date(Without affecting your Credit Scoring) |
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sir_blunted
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Keeping the account. But even better is using the card even if you have the cash and turning around and paying it off. Unless you never plan on going to the store again. |
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korikill
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you should use the card for small purchases every three months. Pay off the balance, then close the account in a year.
That way, and active account that was always paid on time will be on your credit report for 7 years.
Ps, the three month thing is because some companies report inactivity... |
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beautifulsoul90
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The way I think about it is like tests or quizzes in high school.. I like to get alot of credit cards & keep them all open & never use them. This way it will improve my future credit score b/c you have X amount of money offered to you & Y amount being used. I like to keep a large X :] |
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butterfly_tat_luver79
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I would cut it up and throw it away, that way no one can take it and use it. I would also close the account....I would do both just to be safe. |
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⊂( ﾟ ヮﾟ)⊃
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Close the account after you pay it off. You don't what to have any doubts about that. Then you can chop it up into little pieces. |
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.:JELLY:.
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cut up the card you never know u may get tempted to use it or someone else may get ahold of it and they can ruin your credit as well |
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Carly C
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cut it up |
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