topic Re: Closing a credit card upon approval in Credit Cards

Closing a credit card upon approval

jetsfan2013 — Mon, 05 Aug 2019 22:47:33 GMT

This weekend my girlfriend was doing some shopping in the nearby outlets, and while in Banana Republic, the sales rep convinced her to apply for their CC. She was approved, however was very disappointed at the SL (1,000). She does not have a lot of credit, however that is by far her lowest (her credit file includes a Chase Freedom $4,000, NFCU $4,000, Delta Gold Amex $2,000 and Discover $2,000). Not sure what her total util was at time of app but her last FICO from July was in the 650s.

Needless to say, she does not want the card anymore. I tried to convince her to let it grow or sock drawer it, but I also know her enough to not fight a losing battle, and she simply isn't going to keep it. The question is if she closes the card the same week she opens it, how will that report on her file, and how could/would that impact her AAoA and long term score?

Re: Closing a credit card upon approval

Jnbmom — Mon, 05 Aug 2019 22:50:06 GMT

She already took the hit, it will report. And really 1K on a store card is not really bad, she should sock drawer it as the damage is already done.

Re: Closing a credit card upon approval

jetsfan2013 — Mon, 05 Aug 2019 22:53:37 GMT

Already had that convo - and she is not seeing that benefit.

Re: Closing a credit card upon approval

Remedios — Mon, 05 Aug 2019 22:54:41 GMT

@jetsfan2013 wrote:
This weekend my girlfriend was doing some shopping in the nearby outlets, and while in Banana Republic, the sales rep convinced her to apply for their CC. She was approved, however was very disappointed at the SL (1,000). She does not have a lot of credit, however that is by far her lowest (her credit file includes a Chase Freedom $4,000, NFCU $4,000, Delta Gold Amex $2,000 and Discover $2,000). Not sure what her total util was at time of app but her last FICO from July was in the 650s.

Needless to say, she does not want the card anymore. I tried to convince her to let it grow or sock drawer it, but I also know her enough to not fight a losing battle, and she simply isn't going to keep it. The question is if she closes the card the same week she opens it, how will that report on her file, and how could/would that impact her AAoA and long term score?

It will end up on her CR, it will affect her as any new account would.

Being that it's Synch card, expect it to report any time now

She should SD it for a while, at least a year so that all points are recovered, then close at that time.

Re: Closing a credit card upon approval

Jnbmom — Mon, 05 Aug 2019 22:56:20 GMT

@jetsfan2013 wrote:
Already had that convo - and she is not seeing that benefit.

Well you tried. She will take an inquiry and new account hit, but if she is insistent on closing, it is what it is.

Re: Closing a credit card upon approval

Anonymous — Mon, 05 Aug 2019 23:01:45 GMT

If she wants any other Synchrony cards in the future, she might want to rethink immediately closing it.

Maybe educate her on expectations vs reality with a thin file and mid 600s score and the fact that $1K card can easily be her first $10K card if she manages it properly.

If she is totally adamant about not keeping it, that’s fine, but she may get denied Sync cards in the future and she will take all of the credit hits for no reason.

Re: Closing a credit card upon approval

gdale6 — Mon, 05 Aug 2019 23:05:35 GMT

I would not do anything until the card comes and you attempt a CLI with a call to credit solutions there may be a surprise waiting.

Re: Closing a credit card upon approval

CreditInspired — Mon, 05 Aug 2019 23:24:22 GMT

@jetsfan2013 wrote:
This weekend my girlfriend was doing some shopping in the nearby outlets, and while in Banana Republic, the sales rep convinced her to apply for their CC. She was approved, however was very disappointed at the SL (1,000). She does not have a lot of credit, however that is by far her lowest (her credit file includes a Chase Freedom $4,000, NFCU $4,000, Delta Gold Amex $2,000 and Discover $2,000). Not sure what her total util was at time of app but her last FICO from July was in the 650s.

Needless to say, she does not want the card anymore. I tried to convince her to let it grow or sock drawer it, but I also know her enough to not fight a losing battle, and she simply isn't going to keep it. The question is if she closes the card the same week she opens it, how will that report on her file, and how could/would that impact her AAoA and long term score?

So have this conversation with her. Well, babe, what you going to do? Close every $1K card you get? Because it's a possibility she'll get another one.

Seriously, when I first started reading the post, I thought you were going to say her other cards were $10K, $12K, $15K.

I'm with jnbmom, $1K is not bad for a store card. It's Banana Republic, not Nordstrom's afterall. It will grow. I recall when I first got my Macy's card for $1K. Well darn, the furniture I wanted to buy which was on sale was $1.6K! Yep, have another talk.

And if she still has her mind made up, you've done the best you can and you've done your best.

Re: Closing a credit card upon approval

JR_TX — Mon, 05 Aug 2019 23:31:51 GMT

Here’s how you keep her from closing that BR Sync card ;

Look her in the eye then calmly but firmly Tell her that you’re a myFICO contributor and that not listening to you in credit matters is an insult to your intelligence in the highest order. Also tell her that if she still insists in closing that card that you will also sever your relationship with her. Pause for a few seconds then walk away...

Re: Closing a credit card upon approval

NRB525 — Mon, 05 Aug 2019 23:37:40 GMT

Let her close it.
It is not your credit file, and in 1 year it will not make any difference at all on her file.

People have to own their credit file and you should not press the matter.

She learned not to be enticed to app at the register and it is time to move on.

Re: Closing a credit card upon approval

CreditInspired — Mon, 05 Aug 2019 23:48:29 GMT

@JR_TX wrote:
Here’s how you keep her from closing that BR Sync card ;

Look her in the eye then calmly but firmly Tell her that you’re a myFICO contributor and that not listening to you in credit matters is an insult to your intelligence in the highest order. Also tell her that if she still insists in closing that card that you will also sever your relationship with her. Pause for a few seconds then walk away...

Yeah right. This reminds me of the Seinfeld episode where Kramer told George to ask his fiancee Susan for a prenupt agreement, which Kramer said would guarantee that Susan would get angry over the request and call off the wedding. I still hear her peals of laughter. And when she stopped laughing, she said, "Sure, I'll do it. I have more money than you."

I don't know why that came to mind, but it did.

Re: Closing a credit card upon approval

kdm31091 — Tue, 06 Aug 2019 00:00:55 GMT

The damage is done and the account will report regardless, but if she truly wants to close it, let her close it. It will basically be a neutral from a credit standpoint aside from the hard pull/AAOA ding. She won't lose or gain anything otherwise.

Re: Closing a credit card upon approval

Meanmchine — Tue, 06 Aug 2019 03:16:00 GMT

If she keeps the card, she will get the weekly 25% - 50% off promo codes. Keeping the card open for just these offers can be very rewarding

Re: Closing a credit card upon approval

Medic981 — Tue, 06 Aug 2019 03:26:24 GMT

@JR_TX wrote:
Here’s how you keep her from closing that BR Sync card ;

Look her in the eye then calmly but firmly Tell her that you’re a myFICO contributor and that not listening to you in credit matters is an insult to your intelligence in the highest order. Also tell her that if she still insists in closing that card that you will also sever your relationship with her. Pause for a few seconds then walk away...

OMG!

I was thinking exactly the same thing before I read your post. Great minds think alike!

Re: Closing a credit card upon approval

Anonymous — Tue, 06 Aug 2019 04:39:10 GMT

I don't know anything about this card in particular such as it's ability to grow, but as others have said sometimes Synchrony cards can be bumped up immediately via a SP and a call to Credit Solutions. I'd start with that, as there's nothing to lose and everything to gain. If they were immediately to bump it to say $2k or $3k perhaps she'd be satisfied for the time being.

Re: Closing a credit card upon approval

CreditInspired — Tue, 06 Aug 2019 11:58:45 GMT

@Meanmchine wrote:
If she keeps the card, she will get the weekly 25% - 50% off promo codes. Keeping the card open for just these offers can be very rewarding

Excellent point!

Re: Closing a credit card upon approval

AverageJoesCredit — Tue, 06 Aug 2019 12:31:42 GMT

Closing a credit card is The Devil- Momma says