Canceling new barely used card?

[Anonymous]

Hello

I have a Discover It card that I have only had for 6 months and I have used it twice and paid it down but honestly it's just not for me. I find no use the CL is low ($1,000) I am really thinking of canceling it...

What happens if I do?

How will it affect more score? And what will it say on my report?

Thanks everyone!!!

[thomasjm99]

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@Anonymous wrote:

Hello

I have a Discover It card that I have only had for 6 months and I have used it twice and paid it down but honestly it's just not for me. I find no use the CL is low ($1,000) I am really thinking of canceling it...

What happens if I do?

How will it affect more score? And what will it say on my report?

Thanks everyone!!!

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This will depend on your current profile, for example the number of accounts you have and your AAoA. If your profile is thin and you don't have a lot of available credit I would strongly suggest leaving it open until your profile is stronger and won't take a hit from the account being closed and your available credit decreasing (which hurts your utilization percentage)...

[LadyJEsq]

While it's certainly not my place to judge, are you sure you want to cancel a card simply because you think the CL is low? Correct me if I'm wrong, and please don't take this the wrong way, but it seems as if you're miffed about the "low" CL, and therefore you don't want to use the card. Most Discover CCs come with a double cashback promo for the first year, so you're losing out on rewards if that's the case for you CC. If your profile supports it, the card can grow astronomically in a short while. I've said it a thousand times already, but my Discover card started off at $3,500 and within a year it was at $35,000. I too felt that my SL was low, but I wanted to take advantage of the double promo, so I used it anyway and it paid off for me. I was say that if any of my assumptions above are correct, then you should take emotions out of the equation and make sure that your desire to close the card is what's best for you financially. 

[Blackswizz750]

Thats a choice you have to make. If you have a nice amount of credit cards, then chuck it. Keep in mind depending on your profile, even folks with excellent credit may get a small limit from CIti(known for stingy SL's), and AMEX(til they know ya). It will still report for 10 years but depending on your profile, it might affect you for a while.

[Anonymous]

Discover is a great product to have in your lineup. Mine went from $500 to $28,000 within 2 years. You just have to give it time to grow. If you feel you have enough credit then close it. It won't necessarily affect your score and it will stay on your report for 10 years I believe. If I were you though I would continue to use it, I bet the limit will jump soon if your credit profile supports it. 

[Anonymous]

If you don't need it, close it.

[UpperNwGuy]

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@LadyJEsq wrote:

While it's certainly not my place to judge, are you sure you want to cancel a card simply because you think the CL is low? Correct me if I'm wrong, and please don't take this the wrong way, but it seems as if you're miffed about the "low" CL, and therefore you don't want to use the card. Most Discover CCs come with a double cashback promo for the first year, so you're losing out on rewards if that's the case for you CC. If your profile supports it, the card can grow astronomically in a short while. I've said it a thousand times already, but my Discover card started off at $3,500 and within a year it was at $35,000. I too felt that my SL was low, but I wanted to take advantage of the double promo, so I used it anyway and it paid off for me. I was say that if any of my assumptions above are correct, then you should take emotions out of the equation and make sure that your desire to close the card is what's best for you financially. 

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+1

[BronzeTrader]

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@Anonymous wrote:

Hello

I have a Discover It card that I have only had for 6 months and I have used it twice and paid it down but honestly it's just not for me. I find no use the CL is low ($1,000) I am really thinking of canceling it...

What happens if I do?

How will it affect more score? And what will it say on my report?

Thanks everyone!!!

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I would keep it since it has the quartley 5% rewards. 

[Anonymous]

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@BronzeTrader wrote:

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I would keep it since it has the quartley 5% rewards. 

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And, since the OP is still in Year 1, it's quarterly 10% rewards right now.

Discover for the first year is a great card.  After that, it's a mediocre card.  It's really all about those 5% categories after Year 1.  That being said, having a super high CL on a 5% rotating category card isn't very useful for anything outside of utilization padding.  I think most people would be fine with a $5k limit on their Discover card or so when it comes down to it.

[xenon3030]

Discover does not have AF. It has excellent cashback options specially in the first year. No point to close it. It starts with a small CL but grows by time.