topic Closing a New Credit Card Account in General Credit Topics

Closing a New Credit Card Account

AJ67 — Sat, 23 Mar 2024 22:14:13 GMT

Last month I was a approved for a Citizen's bank credit card. They only gave me a $500 CL. It's beyond ridiculous...as my CL in all my other credit cards range from $5000 to $30,000. I'm basically regretting applying for this credit card. To request a CLI you need to call customer service, they pull a hard inquiry and it might take days/weeks to know the decision (weird) + For balance transfers...you also need to call cs and they still charge 5% fee during the introductory offer. I hate it because they make things so cumbersome! So I'm not happy with this card at all. I'm thinking to close it, I haven't used it. And if I never use it...would they close it?

I'm wondering how would closing this credit card affect my credit score??

I mean if I close it vs. if they close it for nonuse...

I need your insights on this...thanks

Re: Closing a New Credit Card Account

CorpCrMgr1 — Sat, 23 Mar 2024 22:59:24 GMT

@AJ67 if you don't use it the Citizens will close the card.

Re: Closing a New Credit Card Account

Traveler101 — Sat, 23 Mar 2024 23:18:37 GMT

Your gonna take a small hit for Inq/new account. It also will be a factor in how many accounts you have opened in 6 12 24. Even though limit is low, why not get a little history with it? Buy a newspaper or coffee. Close it down after a year or let it close organically after a year of history.

Re: Closing a New Credit Card Account

AJ67 — Sat, 23 Mar 2024 23:40:55 GMT

@CorpCrMgr1 wrote:
@AJ67 if you don't use it the Citizens will close the card.

I think this could adversely affect my credit score. That's why I'm debating whether or not I should close it. Maybe I can use it for small purchases...

Re: Closing a New Credit Card Account

AJ67 — Sat, 23 Mar 2024 23:43:32 GMT

@Traveler101 wrote:
Your gonna take a small hit for Inq/new account. It also will be a factor in how many accounts you have opened in 6 12 24. Even though limit is low, why not get a little history with it? Buy a newspaper or coffee. Close it down after a year or let it close organically after a year of history.

I think you're right...I can be patient and simply use it for small purchases so they don't close it. I will not ask for CLI as they pull a hard inquiry.

Re: Closing a New Credit Card Account

FicoMike0 — Sun, 24 Mar 2024 00:16:19 GMT

You've already taken the hits for hard inquiry and new account. I don't think it makes a difference whether you close it or they do. Just pay it ontime!

Did you get a sub for it? I'm waiting for a $400 checking sub from them. I'm not taking any new cards or checking accounts without a sub.

Re: Closing a New Credit Card Account

AJ67 — Sun, 24 Mar 2024 01:22:47 GMT

@FicoMike0 wrote:
You've already taken the hits for hard inquiry and new account. I don't think it makes a difference whether you close it or they do. Just pay it ontime!
Did you get a sub for it? I'm waiting for a $400 checking sub from them. I'm not taking any new cards or checking accounts without a sub.

No SUB. I got a bad deal from them. Even though my score was 790 at the time. I have 0 delinquencies. Everything is paid on time. My credit utilization is very low, I think it was under 5% at the time of the application.

Re: Closing a New Credit Card Account

Horseshoez — Sun, 24 Mar 2024 02:32:48 GMT

@AJ67 wrote:
Last month I was a approved for a Citizen's bank credit card. They only gave me a $500 CL. It's beyond ridiculous...as my CL in all my other credit cards range from $5000 to $30,000. I'm basically regretting applying for this credit card. To request a CLI you need to call customer service, they pull a hard inquiry and it might take days/weeks to know the decision (weird) + For balance transfers...you also need to call cs and they still charge 5% fee during the introductory offer. I hate it because they make things so cumbersome! So I'm not happy with this card at all. I'm thinking to close it, I haven't used it. And if I never use it...would they close it?

I'm wondering how would closing this credit card affect my credit score??
I mean if I close it vs. if they close it for nonuse...

I need your insights on this...thanks

In April of 2020 I opened up a card which came whith a limit too low to be of use for me; I closed it less than 7 weeks later in early June. Like you, I took the hit for the new account and the HP, so damage done, however, when I closed it, nothing happened to my scores, and now, nearly 4 years later it is still showing as a positive on my credit reports. Personally, I say close that turkey.

Re: Closing a New Credit Card Account

citymunky — Sun, 24 Mar 2024 15:05:43 GMT

@Traveler101 wrote:
Your gonna take a small hit for Inq/new account. It also will be a factor in how many accounts you have opened in 6 12 24. Even though limit is low, why not get a little history with it? Buy a newspaper or coffee. Close it down after a year or let it close organically after a year of history.

I second this.

Oh, BTW which CRA did they do HP from? (Semi different topic, I started to app for a HELOC with them, and they want to do a triple pull).

Re: Closing a New Credit Card Account

AJ67 — Sun, 24 Mar 2024 18:57:11 GMT

@citymunky wrote:
I second this.

Oh, BTW which CRA did they do HP from? (Semi different topic, I started to app for a HELOC with them, and they want to do a triple pull).

Citizens pulled an EQ only...

Re: Closing a New Credit Card Account

AJ67 — Sun, 24 Mar 2024 18:59:38 GMT

@Horseshoez wrote:
In April of 2020 I opened up a card which came whith a limit too low to be of use for me; I closed it less than 7 weeks later in early June. Like you, I took the hit for the new account and the HP, so damage done, however, when I closed it, nothing happened to my scores, and now, nearly 4 years later it is still showing as a positive on my credit reports. Personally, I say close that turkey.

Thank you so much! That's exactly what I want to know!

Re: Closing a New Credit Card Account

SouthJamaica — Sun, 24 Mar 2024 21:38:58 GMT

@AJ67 wrote:
Last month I was a approved for a Citizen's bank credit card. They only gave me a $500 CL. It's beyond ridiculous...as my CL in all my other credit cards range from $5000 to $30,000. I'm basically regretting applying for this credit card. To request a CLI you need to call customer service, they pull a hard inquiry and it might take days/weeks to know the decision (weird) + For balance transfers...you also need to call cs and they still charge 5% fee during the introductory offer. I hate it because they make things so cumbersome! So I'm not happy with this card at all. I'm thinking to close it, I haven't used it. And if I never use it...would they close it?

I'm wondering how would closing this credit card affect my credit score??
I mean if I close it vs. if they close it for nonuse...

I need your insights on this...thanks

It won't affect you either way.

Re: Closing a New Credit Card Account

Barkius — Wed, 10 Apr 2024 04:11:43 GMT

What did you end up doing? I had a Navy Federal card that opened up and they gave me $500 and I just didn't want to deal with it so I closed it within 2 weeks. I just I'm not going to deal with BS stuff and have to nurture it and ask for credit limits and make the occasional purchase and stick it in the sock drawer I'm just not going to do any of that stuff.

If some company gives me a crap line of credit then the card is going to be closed I'll take the hit and the drop in average age of accounts I'm just not going to deal with screwing around with it. Life is too short.

Re: Closing a New Credit Card Account

DoppelgangerD — Wed, 10 Apr 2024 04:40:03 GMT

I've always wondered, if you were to open a new cc account, didn't like it for low limit or whatever reason, then just immediately close it...

Is it possible that it never gets reported to the bureaus??

It was open less than a month and never used, and also never activated.

Anyone ever heard of anyone trying this?

Re: Closing a New Credit Card Account

Horseshoez — Wed, 10 Apr 2024 06:38:57 GMT

@Barkius wrote:
What did you end up doing? I had a Navy Federal card that opened up and they gave me $500 and I just didn't want to deal with it so I closed it within 2 weeks. I just I'm not going to deal with BS stuff and have to nurture it and ask for credit limits and make the occasional purchase and stick it in the sock drawer I'm just not going to do any of that stuff.

If some company gives me a crap line of credit then the card is going to be closed I'll take the hit and the drop in average age of accounts I'm just not going to deal with screwing around with it. Life is too short.

You won't take a hit in AAoA, even if you close the card immediately; it will still count toward your AAoA for up to ten years.

Re: Closing a New Credit Card Account

Horseshoez — Wed, 10 Apr 2024 06:40:58 GMT

@DoppelgangerD wrote:
I've always wondered, if you were to open a new cc account, didn't like it for low limit or whatever reason, then just immediately close it...
Is it possible that it never gets reported to the bureaus??
It was open less than a month and never used, and also never activated.
Anyone ever heard of anyone trying this?

The new card will get reported to the bureaus as will the pull on your credit, so you'll get dinged effectively twice for the new card, even if never used or even activated.

Re: Closing a New Credit Card Account

JoeRockhead — Wed, 10 Apr 2024 11:42:27 GMT

@Horseshoez wrote:
@DoppelgangerD wrote:
I've always wondered, if you were to open a new cc account, didn't like it for low limit or whatever reason, then just immediately close it...
Is it possible that it never gets reported to the bureaus??
It was open less than a month and never used, and also never activated.
Anyone ever heard of anyone trying this?
The new card will get reported to the bureaus as will the pull on your credit, so you'll get dinged effectively twice for the new card, even if never used or even activated.

The only times a "new account" would disappear from your reports is if it was an account you were added to as an AU, then removed from in short order. I've had this happen to me (twice). But, as @Horseshoez said, if it was your account, it gets reported even if you close it immediately. Whether or not it stays on your reports a full ten years could be open for debate, but you'd still take the initial score hits as stated above.

Re: Closing a New Credit Card Account

ForwardLooking — Wed, 10 Apr 2024 21:03:11 GMT

@Traveler101 wrote:
... Buy a newspaper or coffee. ...

Who buys newspapers anymore.