open card then closed immediately what happen?

Anonymous · ‎10-05-2015

All,

I recently app for 2 cards (same company), then I called them right away to combined both card together and keep 1 card. The other card are now closed, and I was wondering if this will effect my AAoA will it report to my credit file? I'm aware I already got hit with inquiry but i didn't get ding with the score, in fact I got increase a few point becuase of the inquiry. BUT I am sure I will get ding on score once the account report because of the new credit line.

Also would the combined impact my score, or should i call them back to keep both cards and revised my request?

FinStar · ‎10-05-2015

@Anonymous wrote:
All,

I recently app for 2 cards (same company), then I called them right away to combined both card together and keep 1 card. The other card are now closed, and I was wondering if this will effect my AAoA will it report to my credit file? I'm aware I already got hit with inquiry but i didn't get ding with the score, in fact I got increase a few point becuase of the inquiry. BUT I am sure I will get ding on score once the account report because of the new credit line.

Also would the combined impact my score, or should i call them back to keep both cards and revised my request?

Which 2 cards did you apply for? Yes, the other card will report as closed on your CRs regardless if you closed/combined. So, with that, you will have an AAoA impact regardless for both accounts (how big or small depends on your overall profile).

Anonymous · ‎10-05-2015

Even though I closed the account immediately and never used the card its still reporting?

FinStar · ‎10-05-2015

@Anonymous wrote:
Even though I closed the account immediately and never used the card its still reporting?

Correct.

Anonymous · ‎10-05-2015

IF this is the case then I think I would revised my request and have both account so i build relationship with them? This is strang because I read in some thread where they do not report once it closed immediately.

FinStar · ‎10-05-2015

@Anonymous wrote:
IF this is the case then I think I would revised my request and have both account so i build relationship with them? This is strang because I read in some thread where they do not report once it closed immediately.

Not sure where you read that but that doesn't sound as an acurate statement. Regardless if you opened the account and close it right away, it will still report (as closed by consumer). Which creditor was this with?

Anonymous · ‎10-05-2015

Not sure where you read that but once,an account is created it will report. Also keep in mind that you may not have the option to reopen a closed card by request. I just consolidated cards with Barclay and was read a disclosure that stated the closed account was effective immediately and could not be reopened.

Anonymous · ‎10-05-2015

I did some search and read it in this forum. The reason why i app for 2 cards so i can combined both card and get higher credit limit and it will help me lower my utilization %.

For sample I have KAY card store card that limit is $4000 and i used it and my balance is about $2000 is that is 50% of my utilization used with this account on top of that with the high APR interest rate are fairly high with KAY. With that being said I app for 2 cards and i combined them so my credit limit now is $12,500 with 0% interest. I intent to use my new card with the 12,500$ limit to PAID off KAY jeweler balance, with this instead of having 50% utilization with high interest now i will get a 12% (just guessing) of utilization and with 0% interest. make sense?

FinStar · ‎10-05-2015

@Anonymous wrote:
I did some search and read it in this forum. The reason why i app for 2 cards so i can combined both card and get higher credit limit and it will help me lower my utilization %.

For sample I have KAY card store card that limit is $4000 and i used it and my balance is about $2000 is that is 50% of my utilization used with this account on top of that with the high APR interest rate are fairly high with KAY. With that being said I app for 2 cards and i combined them so my credit limit now is $12,500 with 0% interest. I intent to use my new card with the 12,500$ limit to PAID off KAY jeweler balance, with this instead of having 50% utilization with high interest now i will get a 12% (just guessing) of utilization and with 0% interest. make sense?

Ok, I realize you applied for Freedom recently because you wanted to pay off your Kay's balance without having to use a BT (per your other recent thread). So, if you just opened two Chase CCs and then combined the limit to your Freedom, then the other closed Chase CC cannot be reopened. So, might as well take this as a lesson learned. With that being said, you will still get a ding on AAoA on both new accounts, even though the other one is closed.

Anonymous · ‎10-05-2015

Not questioning your strategy. I understand why you did things the way you did but just want you to be aware what you read was incorrect and the closed card will still report.