topic Re: To activate or not in Credit Cards

To activate or not

AverageJoe1970 — Sun, 22 Feb 2015 15:10:33 GMT

I received a Chase Freedom card with a relatively low credit line. I have not activated the card, because I simply won't use it.

I carry less than 5% utilization on all cards.

Will not activating negatively affect my credit rating? In 2014 I paid off my last student loan and a car loan, both of which have affected my length of credit history - so I'm also wondering if this new card will adversely affect credit history.

Thank you!

I did read this, but curious to know what ya' all might think. http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/td-p/347190

Re: To activate or not

Anonymous — Sun, 22 Feb 2015 15:19:56 GMT

Welcome ro the forums.

Really doesn't matter if you activate it or not. It is going to report. I'm not sure if you can call Chase and ask them to completely close the card and don't report it.

Re: To activate or not

Anonymous — Sun, 22 Feb 2015 15:40:36 GMT

@Anonymous wrote:
Welcome ro the forums.

Really doesn't matter if you activate it or not. It is going to report. I'm not sure if you can call Chase and ask them to completely close the card and don't report it.

+1..

Re: To activate or not

Anonymous — Sun, 22 Feb 2015 15:53:57 GMT

@Anonymous wrote:
@Anonymous wrote:
Welcome ro the forums.

Really doesn't matter if you activate it or not. It is going to report. I'm not sure if you can call Chase and ask them to completely close the card and don't report it.
+1..

Yes, activation is only for security, (and some cards ship activated anyway) the account will appear on your CR activated or not.

Re: To activate or not

AverageJoe1970 — Sun, 22 Feb 2015 16:22:25 GMT

So if I "close" it - how can I expect it to affect my Credit? Will my credit history re-adjust - or will the card be included? Sorry, I'm not familar with how this works.

Thanks.

Re: To activate or not

Anonymous — Sun, 22 Feb 2015 16:25:30 GMT

@AverageJoe1970 wrote:
So if I "close" it - how can I expect it to affect my Credit? Will my credit history re-adjust - or will the card be included? Sorry, I'm not familar with how this works.

Thanks.

You said you read the link in your OP! Closed cards will continue to report for up to 10 years. The inquiry will report for the next two years (impacting score for 1).

The only immediate impact on closing a card is that you lose the credit limit, which can increase your utilization % (if any), lowering the score

Re: To activate or not

Anonymous — Sun, 22 Feb 2015 16:57:07 GMT

I assume you wanted the card or you would not have app'd. If you are just unhappy with the CL then recon. You already took the HP. If you have another Chase account you can transfer credit limits. Shame to waste an inquiry.

Re: To activate or not

racer-x — Sun, 22 Feb 2015 17:08:22 GMT

@Anonymous wrote:
I assume you wanted the card or you would not have app'd. If you are just unhappy with the CL then recon. You already took the HP. If you have another Chase account you can transfer credit limits. Shame to waste an inquiry.

That's what I was thinking.

Might as well activate it so the CL will help utilization, whether or not utilization is ever an issue really doesn't matter.

You've already paid for the card via a HP, may as well use it.

Re: To activate or not

SnackTrader — Sun, 22 Feb 2015 17:12:33 GMT

Feel free to ask for a higher credit line if you think you deserve it.

Re: To activate or not

AverageJoe1970 — Sun, 22 Feb 2015 18:47:17 GMT

I'm not worried about the HP, they didn't do one.

I'm solely interested in trying to adjust the combined average of my credit history - which changed once I paid off my last student loan.

Thanks.

Re: To activate or not

Skye12329 — Sun, 22 Feb 2015 19:10:14 GMT

If you recently opened the card then yes they did HP one of the bureau's. A new app for a card is always going to be a HP.

As for closing I would suggest against it. I mean you already took the damage on average age of accounts. Might as well let it age and close it down the road if you want.

Re: To activate or not

NRB525 — Sun, 22 Feb 2015 19:19:25 GMT

OP, it is rather difficult in these situations to give a one-off suggestion on one card. (other than Freedom is a noAF card with plenty of points benefits, and a way to build good history with Chase, so no real downside to keeping it)

What are your entire list of cards? What is the limit on this card? What limit were you hoping for? Do you have any other Chase cards already? What are your scores? Chase usually has, on their acceptance email or letter that "if this CL does not meet your needs..." then call them to see about improving it. I've got a $1,500 Freedom card, and it's no AF, was converted from something older that Chase picked up in a merger. It works fine for the category spend that I do sometimes.

Re: To activate or not

Anonymous — Sun, 22 Feb 2015 19:24:34 GMT

Freedom isn't the worst card in the world to have in your portfolio. If it were First Premier or Credit One I'd say cancel it, burn it, and then burn the ashes. I'm finding the categories on Freedom to be very rewarding. Can't wait to pair it with a CSP in the future.

Re: To activate or not

Anonymous — Sun, 22 Feb 2015 19:25:58 GMT

@AverageJoe1970 wrote:
I'm not worried about the HP, they didn't do one.

I'm solely interested in trying to adjust the combined average of my credit history - which changed once I paid off my last student loan.

Thanks.

It's done. The account has already been opened. Whether you choose to activate or not, the account is already open and will count towards your average age of accounts.

Re: To activate or not

Anonymous — Sun, 22 Feb 2015 19:41:53 GMT

Maybe put it in a sock drawer as a reserve card in case one of your others gets hit with fraud? Just a suggestion since, as others have said, the damage is done.

Re: To activate or not

racer-x — Sun, 22 Feb 2015 19:50:24 GMT

@AverageJoe1970 wrote:
I'm not worried about the HP, they didn't do one.

I'm solely interested in trying to adjust the combined average of my credit history - which changed once I paid off my last student loan.

Thanks.

As already said, you definitely took a HP...It just hasn't showed up yet.

Re: To activate or not

AverageJoe1970 — Sun, 22 Feb 2015 20:14:34 GMT

I received the card back in December. As I tried to say, I'm NOT concerned/worried about the Hard Pull, as I have none on any of my credit reports.

I'm only interested in the card's affect on my Credit History...if I cancel/close the account - will this card count towards my overall credit history or by canceling it will it not count?

I don't care about the card, but I do care about how my credit history appears... and if canceling/closing this card will help to that end, then yeah, I wanna close the account (with a card that I've not activated).

Thanks.

Re: To activate or not

Anonymous — Sun, 22 Feb 2015 20:23:04 GMT

@AverageJoe1970 wrote:
I received the card back in December. As I tried to say, I'm NOT concerned/worried about the Hard Pull, as I have none on any of my credit reports.

I'm only interested in the card's affect on my Credit History...if I cancel/close the account - will this card count towards my overall credit history or by canceling it will it not count?

I don't care about the card, but I do care about how my credit history appears... and if canceling/closing this card will help to that end, then yeah, I wanna close the account (with a card that I've not activated).

Thanks.

It will count towards your history either way.

Re: To activate or not

09Lexie — Sun, 22 Feb 2015 20:28:02 GMT

@AverageJoe1970 wrote:
I received the card back in December. As I tried to say, I'm NOT concerned/worried about the Hard Pull, as I have none on any of my credit reports.

I'm only interested in the card's affect on my Credit History...if I cancel/close the account - will this card count towards my overall credit history or by canceling it will it not count?

I don't care about the card, but I do care about how my credit history appears... and if canceling/closing this card will help to that end, then yeah, I wanna close the account (with a card that I've not activated).

Thanks.

As stated earlier, canceling the card will not remove it from your CRs. Your AAOA has been affected whether you close/cancel it or not and may remain on your CRs for up to 10 years.

You might ask Chase to remove the entire TL since you did not use the card but it has been 3 months and chances of them agreeable are slim to none.

Re: To activate or not

kdm31091 — Sun, 22 Feb 2015 21:15:56 GMT

OP it sounds like you truly want to just close the card so go for it. Your AAOA is already affected however much it will be from opening this acct. I'm not sure how you say you got it without a HP?

Anyway, you are clearly unhappy so just close it. You do not sound like the sock drawering type and that's OK. It makes little difference now. The damage is done. If you don't see yourself using the card may as well close it.

If you ask nicely Chase may remove the HP/TL since it was never used.