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Lexi0000
Posts: 10
Registered: ‎11-14-2012
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Should I close a credit card I just opened?

I applied for the BOA travel reward couple of days ago and it's already reporting, but I just realized it's not reporting the limit! I dt want a card that's not reporting the credit limit.

 

How bad is it going to affect my credit?

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webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: Should I close a credit card I just opened?


Lexi0000 wrote:

I applied for the BOA travel reward couple of days ago and it's already reporting, but I just realized it's not reporting the limit! I dt want a card that's not reporting the credit limit.

 

How bad is it going to affect my credit?


Call customer service and ask to be downgraded to a Non-Signature version of the card.


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jsucool76
Posts: 4,017
Registered: ‎12-11-2011
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Re: Should I close a credit card I just opened?


webhopper wrote:

Lexi0000 wrote:

I applied for the BOA travel reward couple of days ago and it's already reporting, but I just realized it's not reporting the limit! I dt want a card that's not reporting the credit limit.

 

How bad is it going to affect my credit?


Call customer service and ask to be downgraded to a Non-Signature version of the card.


+1

 

It isn't reporting your limit because it is up to each lender whether to report a limit on a flexible spend (VisaSig/WorldMC NPSL) account. 

 

Be aware if you downgrade to the platinum (or plat plus, w/e BoA calls their stuff) you will lose some benefits the sig version carries, like NPSL, the concierge, stuff like that 

;
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Revelate
Posts: 9,751
Registered: ‎12-30-2011
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Re: Should I close a credit card I just opened?

[ Edited ]

What everyone else has said.

 

Don't simply close the card; even if they won't PC you (unlikely they wouldn't) there are ways to generate a high balance temporarily on a flexible spending account of any type which can serve as the limit when it comes to FICO calculations.  BOFA at least takes the highest daily balance (may be up to the minute even) so there's no need to even let that balance report if you're worried about a near-term application.

 

If you simply close it, there's a non-zero chance that it'll be reported anyway to the bureaus... and then it's a blemish for every other underwriting department in the next 10 years to look at.  Banks are sorta collusive in some respects (burn one and you burn all of them), and this I suspect falls into this category.  Also if it's the non-Preferred version there's no AF anyway so it won't hurt you to keep it open for call it a year and then close it if you decide you don't want the card at all.

 

 

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HiLine
Posts: 3,176
Registered: ‎10-19-2012
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Re: Should I close a credit card I just opened?

[ Edited ]

 BOFA at least takes the highest daily balance (may be up to the minute even) so there's no need to even let that balance report if you're worried about a near-term application.

 


This is interesting. You're saying that BofA reports to the credit bureaus the highest daily (or minute-ly) balance as the highest balance? I've learned something new today!

 

Anyway, closing a no-annual fee credit card from a prime lender is almost always a bad idea.

 

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Revelate
Posts: 9,751
Registered: ‎12-30-2011
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Re: Should I close a credit card I just opened?


HiLine wrote:

 BOFA at least takes the highest daily balance (may be up to the minute even) so there's no need to even let that balance report if you're worried about a near-term application.

 


This is interesting. You're saying that BofA reports to the credit bureaus the highest daily (or minute-ly) balance as the highest balance? I've learned something new today!

 

Anyway, closing a no-annual fee credit card from a prime lender is almost always a bad idea.

 


Yeah,  I found that out explicitly over the past year; some lenders will only report the high balance if it's an end of statement balance; however, BOFA is not one of them.  I had a near maxxed card which I was going to let report before I got the heeby jeebies and simply paid the balance... turns out that the top balance of the month (may not have included pending charges though) was what wound up in the high balance line for my BOFA credit card, rather than the statement balance.

 

Actually did this twice over the last year and was identical behavior each time.  I don't know if it's a daily sweep though or if it's just instant in time highest balance, for most people it doesn't matter too much I suspect unless you're trying to goose the high balance near the end of a reporting cycle and you have a near-term application coming up.  Personally I do this on my cards almost as soon as I actually get them and I don't apply for much anyway so it's never been an issue for me.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
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youngandcreditwrthy
Posts: 6,242
Registered: ‎08-16-2012
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Re: Should I close a credit card I just opened?

Dont cancel!!! Simply charge something equal to the limit you want ans PIF or return it.
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youngandcreditwrthy
Posts: 6,242
Registered: ‎08-16-2012
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Re: Should I close a credit card I just opened?

I dont like the npsl or no limit cards. I feel like they mess with your util too easily, esp since the reporting is janky. Too bad the CARD Act didn't include more reporting practices law. Lol bc util impacts your fico DIRECTLY.
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