topic Re: open card then closed immediately what happen? in Credit Cards

open card then closed immediately what happen?

Anonymous — Tue, 06 Oct 2015 04:28:50 GMT

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?

Re: open card then closed immediately what happen?

FinStar — Tue, 06 Oct 2015 04:38:30 GMT

@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).

Re: open card then closed immediately what happen?

Anonymous — Tue, 06 Oct 2015 04:43:39 GMT

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

Re: open card then closed immediately what happen?

FinStar — Tue, 06 Oct 2015 04:47:16 GMT

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

Correct.

Re: open card then closed immediately what happen?

Anonymous — Tue, 06 Oct 2015 04:50:06 GMT

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.

Re: open card then closed immediately what happen?

FinStar — Tue, 06 Oct 2015 04:54:55 GMT

@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?

Re: open card then closed immediately what happen?

Anonymous — Tue, 06 Oct 2015 04:53:31 GMT

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.

Re: open card then closed immediately what happen?

Anonymous — Tue, 06 Oct 2015 05:00:27 GMT

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?

Re: open card then closed immediately what happen?

FinStar — Tue, 06 Oct 2015 05:07:00 GMT

@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.

Re: open card then closed immediately what happen?

Anonymous — Tue, 06 Oct 2015 05:07:30 GMT

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.

Re: open card then closed immediately what happen?

Anonymous — Tue, 06 Oct 2015 05:10:15 GMT

Thank you guys...Yup lesson learned and never beleived what you read. Once the statement cut off I will let everyone know if this closed account report it or not. Im sure it will but just wanted to see how it turn out.

Re: open card then closed immediately what happen?

takeshi74 — Tue, 06 Oct 2015 12:30:52 GMT

@Anonymous wrote:
The other card are now closed, and I was wondering if this will effect my AAoA will it report to my credit file?

There's a sticky for that. See the Closing Credit Cards thread linked in the Helpful Threads sticky.

@Anonymous wrote:
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.

That's incorrectly assumed causality. HP's can have little impact depending on credit profile but they do not improve scores. You're overlooking other changes in you report. To determine the causes of any scoring change you need to carefully review reports from before and after the change.

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

Your score is based on the standard factors so it all depends on how combining impacted those factors.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Combing limits doesn't change your revolving utiliation. It's really opening the new account that impacted your scores.

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

Whether you activate or use the card or close it immediately does not matter. If you apply you should be prepared to have the account report when approved.

@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?

Some would say yes but you don't need to rely on relationship. If your credit supports an approval, CLI or APR reduction you'll get one. If it does not, you won't. Relationship may help a little in some situations but it will not make or break an approval on its own.

You've already made the changes. Next time carefully research before taking action.

Re: open card then closed immediately what happen?

egaithe — Tue, 08 Mar 2016 22:34:51 GMT

I did this once, and my credit score went up. $350 limit with HSBC.