Sneaky HSBC... Should I dispute?

Anonymous · ‎07-30-2007

A few years ago I applied for, and was approved, for a Best Buy in-store charge card. Apparently, no to my knowledge, there was some fine print saying that I also wanted to apply for a HSBC Mastercard also, well I was approved and the card came in the mail, I didn't know about not cancelling cards then and so I did cancel it. Now it's on my CR's. Is this hurting my overall TL age? Should I dispute this with the CRA's?

Message Edited by Jamesus81801 on 07-30-2007 12:51 PM

Anonymous · ‎07-30-2007

The card will up your util. What hurts scores on CC is missed pmts CO over limit. things like that. I would be sure that the account is open & activated. Then use it for something small & PIF during grace period. You then show a pmt. history.

A CC works best for you when showing CL & good payment history..remember they also look at age of accounts.

Anonymous · ‎07-30-2007

I know that it would help the utility, but I don't want the card... this was a couple of years ago. It's been closed since only a few days after it was issued. I just don't want it reporting as an account that I closed, when I never wanted it open in the first place. My question was is the fact that this card only shows a couple days of being open lowering the overall average age of my tradelines?

Anonymous · ‎07-30-2007

Im sorry I misunderstood. The card will have nothing to due with your UTIL. It can stay as closed & not hurt you. It can also stay for 10 years.

My opinion would be to just leave it. But If you want it gone you can dispute is as NOT mine. You can also write the CCC and tell them that you did not request the CC to begin with, and ask to have it removed. They MIGHT remove it but I do not think that they must.

Please wait for another person to give their opinion.

fused · ‎07-30-2007

Jamesus81801 wrote:
I know that it would help the utility, but I don't want the card... this was a couple of years ago. It's been closed since only a few days after it was issued. I just don't want it reporting as an account that I closed, when I never wanted it open in the first place. My question was is the fact that this card only shows a couple days of being open lowering the overall average age of my tradelines?

I cannot see how this TL will hurt your scores. Here's why! The only thing you need to concern yourself with when closing a CC, short history or not, is the negative effect it could have on your cumulative Util% calculations on your revolving accounts. There are two types of UTIL% calculations: one for each CC and a second one which is cumulative and calculates your total UTIL%. Both are very important.
Example:
Card 1: CL 5K, balance 1K = 20% util
Card 2: CL 3K, balance 800 = 27% util
Card 3: CL 2K, balance 100 = 5% util
Add all three together and cumulative UTIL% is 19%
Not bad but again not ideal. Let's see what happens if you close one of them.
Close Card 2:
Total CL is 10K - 3K = 7K total CL
Cumulative: 7K CL, balance 3K = 43%
Getting worse!
Closed and opened CC TLs are weighted and scored equally by FICO. You will not be punished by simply closing a CC as long as it has no derogs reporting with it (i.e. lates)and your cumulative Util stays at 1-9%. If you can get any CLIs this will help you to lower your util% as well. Also opened and closed TLs are weighed and scored equally and they age the same. As long as you understand these FICO rules there will be no adverse effects to your average-age of accounts, credit length history or FICO scores when closing a CC.

P.S. This CC you do not want is a postive TL and it will continue to help your scores.

Message Edited by fused111 on 07-30-2007 12:13 PM

Anonymous · ‎07-31-2007

I would just leave it. Its not hurting you now. if its been less then 30 days and theres no ann. fee reopen it then shred the card. HSBC is a hard company to get stuff deleted from your cr.....

Anonymous · ‎07-31-2007

Thanks everyone! Don't worry about the misunderstanding, I'll just leave it alone, it's too late to reopen and I think it had an annual fee at the time anyway... No worries, just wanted to check.