Any experience apping and then immediately closing account?

[Anonymous]

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@NRB525 wrote:

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@msbia wrote:

This is interesting info. My Barclays USAir card reported days before I ever received the card, and within 2-3 days from approval. 

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It reported you had an open CL of $x, or it reported the hard pull inquiry?

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Barclays reports an open TL with CL and any balance like expedited fee several days before you get card

[kdm31091]

I have never closed it literally immediately, but I closed my Citi TYP probably a week after I got it. The HP isn't gonna go away, but since you are closing it before it really reports usage, it may not affect much else other than having an inquiry and a new account briefly opened.

[Fico2Go]

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@NRB525 wrote:

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@Fico2Go wrote:

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@NRB525 wrote:

Is that a concern? Your signature indicates it has been a while since you got any new cards. It would seem likely the CL should be reasonable.

Which cards are on your list? What is your current MyFICO?

If you don't activate the card, I'm not sure you've actually completed the application cycle. What you get in the mail with the card is a boatload of legal documents you are supposed to read through (including the proposed CL) before you decide to activate. If you agree to the contract, you can activate the card and begin using it. If you don't accept the terms of the contract, do not activate the card, and then write the bank a letter, mail it, refusing the terms of the contract. You can even send the card back. I don't see how the bank could report the card even issued at all in that scenario. My 2 cents.

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Most credit apps online include the terms and agreement when you click submit.   I would imagine and I could be wrong that the minute you click submit you will have accepted the terms of the card.   As for activation of the card I dont have enough data to say one way or the other. 

My ficos are now in the mid 700s.  I have not apped in a short while but dont want to be stuck with puny CLs. 

 I have all my favorite cards now and any new card is as good as any new card for UTIL.

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Yes, there are written terms and an "Are you sure you want to apply?" moment. But the negotiation is not complete when you click submit.

The bank then thinks about the application you submitted (anywhere from nanoseconds to 7-10 days, YMMV) and then if they decide to send you a credit card with paperwork, they have then made a firm commitment to offer a specific amount of credit on specific terms. We still aren't done.

Until you activate the card, a contract has not been completed, because you have not accepted the terms of the agreement. If their range of APR is 11.99 to 22.99, and they offer you 22.99 when you really wanted 11.99, there is no agreement, no meeting of the minds.

You still have the HP on your CR, but you have not accepted the terms, not taken out a CL yet.

Only the activation step completes the negotiation.

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That's great to hear.  Which card or company have you done this with?  It seems at least Baclay will report a new TL even before the card arrives.  

[NRB525]

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@Fico2Go wrote:

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@NRB525 wrote:

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@Fico2Go wrote:

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@NRB525 wrote:

Is that a concern? Your signature indicates it has been a while since you got any new cards. It would seem likely the CL should be reasonable.

Which cards are on your list? What is your current MyFICO?

If you don't activate the card, I'm not sure you've actually completed the application cycle. What you get in the mail with the card is a boatload of legal documents you are supposed to read through (including the proposed CL) before you decide to activate. If you agree to the contract, you can activate the card and begin using it. If you don't accept the terms of the contract, do not activate the card, and then write the bank a letter, mail it, refusing the terms of the contract. You can even send the card back. I don't see how the bank could report the card even issued at all in that scenario. My 2 cents.

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Most credit apps online include the terms and agreement when you click submit.   I would imagine and I could be wrong that the minute you click submit you will have accepted the terms of the card.   As for activation of the card I dont have enough data to say one way or the other. 

My ficos are now in the mid 700s.  I have not apped in a short while but dont want to be stuck with puny CLs. 

 I have all my favorite cards now and any new card is as good as any new card for UTIL.

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Yes, there are written terms and an "Are you sure you want to apply?" moment. But the negotiation is not complete when you click submit.

The bank then thinks about the application you submitted (anywhere from nanoseconds to 7-10 days, YMMV) and then if they decide to send you a credit card with paperwork, they have then made a firm commitment to offer a specific amount of credit on specific terms. We still aren't done.

Until you activate the card, a contract has not been completed, because you have not accepted the terms of the agreement. If their range of APR is 11.99 to 22.99, and they offer you 22.99 when you really wanted 11.99, there is no agreement, no meeting of the minds.

You still have the HP on your CR, but you have not accepted the terms, not taken out a CL yet.

Only the activation step completes the negotiation.

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That's great to hear.  Which card or company have you done this with?  It seems at least Baclay will report a new TL even before the card arrives.  

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I haven't. I'm going off of legal theory, not practical experience. So if others are seeing different actual results, then I'm wrong.

But getting back to the OP question, it seems like a non-standard sequence to app-then-close based on something as hopeful as a CL. The bank is going to grant whatever CL they are going to grant, based on the reality of the applicant overall credit profile. If one is not willing to accept that initial CL, then close the account. Whether it reports with a zero balance seems inconsequential to me. I've closed several accounts over the years, and had accounts closed from the bank chosing then too. It's no big deal.

[msbia]

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@Anonymous wrote:

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@NRB525 wrote:

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@msbia wrote:

This is interesting info. My Barclays USAir card reported days before I ever received the card, and within 2-3 days from approval. 

---

It reported you had an open CL of $x, or it reported the hard pull inquiry?

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Barclays reports an open TL with CL and any balance like expedited fee several days before you get card

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Exactly this. Thank you. 

[longtimelurker]

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@NRB525 wrote:

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@Fico2Go wrote:

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@NRB525 wrote:

Is that a concern? Your signature indicates it has been a while since you got any new cards. It would seem likely the CL should be reasonable.

Which cards are on your list? What is your current MyFICO?

If you don't activate the card, I'm not sure you've actually completed the application cycle. What you get in the mail with the card is a boatload of legal documents you are supposed to read through (including the proposed CL) before you decide to activate. If you agree to the contract, you can activate the card and begin using it. If you don't accept the terms of the contract, do not activate the card, and then write the bank a letter, mail it, refusing the terms of the contract. You can even send the card back. I don't see how the bank could report the card even issued at all in that scenario. My 2 cents.

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Most credit apps online include the terms and agreement when you click submit.   I would imagine and I could be wrong that the minute you click submit you will have accepted the terms of the card.   As for activation of the card I dont have enough data to say one way or the other. 

My ficos are now in the mid 700s.  I have not apped in a short while but dont want to be stuck with puny CLs. 

 I have all my favorite cards now and any new card is as good as any new card for UTIL.

---

Yes, there are written terms and an "Are you sure you want to apply?" moment. But the negotiation is not complete when you click submit.

The bank then thinks about the application you submitted (anywhere from nanoseconds to 7-10 days, YMMV) and then if they decide to send you a credit card with paperwork, they have then made a firm commitment to offer a specific amount of credit on specific terms. We still aren't done.

Until you activate the card, a contract has not been completed, because you have not accepted the terms of the agreement. If their range of APR is 11.99 to 22.99, and they offer you 22.99 when you really wanted 11.99, there is no agreement, no meeting of the minds.

You still have the HP on your CR, but you have not accepted the terms, not taken out a CL yet.

Only the activation step completes the negotiation.

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Unfortunately, I think this is wrong, at least in practice.   All the banks I know of consider the activation step a SECURITY measure, nothing to do with contract negotiations.   When you activate, you are asked for stuff like the card number, and, if you are not calling from your registered phone, SSN, ZIP code etc.  At no point are you asked anything like "Do you agree to the terms of the contract"   Elsewhere, USE of the credit card constitues acceptance of changed conditions.

My guess is when you submit, you are agreeing to all and any of the possible listed APRs

[Anonymous]

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@longtimelurker wrote:

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@NRB525 wrote:

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@Fico2Go wrote:

---

@NRB525 wrote:

Is that a concern? Your signature indicates it has been a while since you got any new cards. It would seem likely the CL should be reasonable.

Which cards are on your list? What is your current MyFICO?

If you don't activate the card, I'm not sure you've actually completed the application cycle. What you get in the mail with the card is a boatload of legal documents you are supposed to read through (including the proposed CL) before you decide to activate. If you agree to the contract, you can activate the card and begin using it. If you don't accept the terms of the contract, do not activate the card, and then write the bank a letter, mail it, refusing the terms of the contract. You can even send the card back. I don't see how the bank could report the card even issued at all in that scenario. My 2 cents.

---

Most credit apps online include the terms and agreement when you click submit.   I would imagine and I could be wrong that the minute you click submit you will have accepted the terms of the card.   As for activation of the card I dont have enough data to say one way or the other. 

My ficos are now in the mid 700s.  I have not apped in a short while but dont want to be stuck with puny CLs. 

 I have all my favorite cards now and any new card is as good as any new card for UTIL.

---

Yes, there are written terms and an "Are you sure you want to apply?" moment. But the negotiation is not complete when you click submit.

The bank then thinks about the application you submitted (anywhere from nanoseconds to 7-10 days, YMMV) and then if they decide to send you a credit card with paperwork, they have then made a firm commitment to offer a specific amount of credit on specific terms. We still aren't done.

Until you activate the card, a contract has not been completed, because you have not accepted the terms of the agreement. If their range of APR is 11.99 to 22.99, and they offer you 22.99 when you really wanted 11.99, there is no agreement, no meeting of the minds.

You still have the HP on your CR, but you have not accepted the terms, not taken out a CL yet.

Only the activation step completes the negotiation.

---

Unfortunately, I think this is wrong, at least in practice.   All the banks I know of consider the activation step a SECURITY measure, nothing to do with contract negotiations.   When you activate, you are asked for stuff like the card number, and, if you are not calling from your registered phone, SSN, ZIP code etc.  At no point are you asked anything like "Do you agree to the terms of the contract"   Elsewhere, USE of the credit card constitues acceptance of changed conditions.

My guess is when you submit, you are agreeing to all and any of the possible listed APRs

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My understanding is this is correct.  Read carefully before you click.

[manyquestions]

I agree that a card that you never activate will usually still report unless you are able to convince the creditor otherwise. It may depend on your ability to convince a CSR or supervisor to make it not report. You might not win that battle all the time. It's not a strategy that I would want to rely on.

[dursty87]

I applied for a Cap One card and got a whopping $300 limit. Wasn't too happy, it didn't compare to my other CC limits lol. I closed the card before it was even mailed out ( and I still got it). It still reported as closed by consumer and it indeed hurt my AAoA. I should've just SD'd if I only I knew.

[NRB525]

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@ssondubs wrote:
I applied for a Cap One card and got a whopping $300 limit. Wasn't too happy, it didn't compare to my other CC limits lol. I closed the card before it was even mailed out ( and I still got it). It still reported as closed by consumer and it indeed hurt my AAoA. I should've just SD'd if I only I knew.

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well, the AAoA is affected by the fact that you apped for it, right? not the disappointing CL. Regardless if you liked the CL, or kept it open the effect on AAoA should have been exactly the same, once you decided to app.