Credit Cards

[CMS2012]

Almost two weeks ago, I applied for 4 credit cards are was approved for all:

Discover Student Card

Bank of America Student Card

State Farm Student Card

Hooters

I am really regretting getting the Hooters card (and on the fence about the State Farm card)  I also have a Ciitbank Student Visa.

What is the best way to handle the Hooters card?

I checked my EQ Fico score a couple of days ago... 16 point drop and TU was a 14 point drop.  (I expected the drop, not worried because time will bring my scores back up and I do plan on applying for any new credit) but one of the negative factors was low credit limit. (Hooters)  From what I have read, the Hooters card is not one that will grow with me.  Another negative factor was that all of my accounts had a zero balance! (banging my head against the wall!)

I would like to get rid of this card but I have read that closing a card is not good. 

Any advice on what I should is greatly appreciated!

[hobojon]

Not much you can do about it now. Keeping it open or closing it won't affect your score in the short term unless you need the credit limit for utilization purposes. It will age the same open or closed.

[haulingthescoreup]

Do you know if the Hooters card will have an annual fee?

There are two problems with having dud accounts on your records: it's just one more thing to keep track of, and if it has a low-ish limit, future lenders might offer lower CL's/ less positive conditions. Low-limit cards do appear to stink up your profile to lenders, once you start moving into the good card realm.

If you want to close it now, you can. As hobojon mentioned, you're stuck with it on your records for 10 years anyway. If you have any negatives in your past, you might want to grimly keep it open, buying a Happy Meal once a month, just for the sake of the continuing positive history. TheNewWorldMan called this "diluting bad history with good", and that's a good way of looking at it.

If you don't have any past negatives to shout down, you can close it if you like. Be sure to read fused's "Closing Credit Cards" (linked in my siggy) to become aware of the various things you should think about first.

[CMS2012]

Thanks Hauling and Hobojon,

No annual fee 14% APR (ouch!)  I called Merrick bank when after I found out I was approved and asked for a CLI and was told that I would have to wait 6 months   I don't need the card for utilization because I pay my balances in full each month and I do not have any negative marks on credit report..  Currently my utilization is 0% which I recently found out is lowering my credit score!  I think I will give it 6 months and see what they offer for a CLI. 

Thanks again!

[chartley3]

If you close the card now you can avoid having it hit your credit report. I did it with an HSBC card that has a extremely low Credit Line. If it does show up on your report you can dispute it off.

Message Edited by chartley3 on 04-29-2009 06:31 AM

[Pappy214]

Did you already activate the cards? If not, then call them and say you do not want them.

[CMS2012]

I already activated the card!  I wish I had posted before!  UUGGGHHH!

[score_building]

doesn't matter- even if you didn't activate would most likely still report to the bureaus.

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CMS2012 wrote:

I already activated the card!  I wish I had posted before!  UUGGGHHH!

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