Did something STUPID... help?!

[lmfields84]

My husband and I went mattress shopping yesterday, and though I am a smart person and I KNOW BETTER, I decided to let them finance it through GE Capital at 0% for 12 months.  This not only hit us with a HP, but opened a new line of credit which I had not planned on doing any time soon.  I got caught up in the moment- we REALLY need a new bed and I didn't want to wait a few months to save for it, or put it on our credit card so it can accrue interest (We PIF each month, never pay interest!)  Anyway, I believe we can swing payments of $100 or so a week, meaning in about 10 weeks we will have the mattress paid off completely.  My question is, should I pay it off and immediately close the account?  Would that negatively impact my score, or not so much since it is a new account anyway, not a seasoned card?  I could also leave the line of credit open ($1,000) for up to 18 months after its paid off before they will close the account on their own.  I feel so dumb for even doing it in retrospect, now I just want to get away with as little damage as possible!  Thanks for your help!

[daybreakgonesXe]

Imfields,

I'm on mobile so not sure if you have details about your credit, but hey, you got approved and you're saving some money - I don't think it was a bad move at all!

If you're not planning any crucial apps in the next 6 months, you're fine! Utilize the 0% offer to the fullest and then just sock drawer the account after. At least you know for any future purchases you have an account for such offers.

Good luck on your credit journey! Enjoy the new mattress!

[coldnmn]

Damage is done you may as well enjoy the 0% financing.  Your scores will come back. Saving money in my opinion is why I garden in the first place. I never feel bad about that.

[lmfields84]

Thanks guys- I just feel like I should've been smarter and waited.  I wonder how much the HP and new account will impact us and worry it will be a lasting sting... maybe it won't be.  So the suggestion is to hold onto the account after it's paid?

[coldnmn]

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@lmfields84 wrote:

Thanks guys- I just feel like I should've been smarter and waited.  I wonder how much the HP and new account will impact us and worry it will be a lasting sting... maybe it won't be.  So the suggestion is to hold onto the account after it's paid?

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I would to extend the positive reporting. It still will report for ten years it may as well be 11 1/2 if they close it after a year and a half.

[Kenny]

Wait until it's post on your CR to show whether it's an installment loan or a LOC.

If it shows as a revolving line of credit, then you can pay it off quicker than the year, but to me if it's just an installment loan.. better to only pay what is required and get the full history on your report. They won't care that you paid it off in 6 months - 6 months faster. Won't matter.

[PlasticOrPlastic]

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@lmfields84 wrote:

Thanks guys- I just feel like I should've been smarter and waited.  I wonder how much the HP and new account will impact us and worry it will be a lasting sting... maybe it won't be.  So the suggestion is to hold onto the account after it's paid?

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Honestly depending on the rest of your profile you may see a 5 point drop max.  I just opened a Sallie Mae card and my score went down 1 point.  What kind of limit did you get?  That could help your overall util.  As the others have said you did nothing wrong, you got approved and are saving interest, sounds like a win to me.  And I would keep the card after its paid off, my DG kept her Wells Fargo furniture card with 5K limit after we paid off our kitchen table and the extra credit line helps her UTIL a lot. 

Enjoy the purchase! 

[leegreen]

I think the real question here is are you and DH sleeping better? If so you saved money and improved your life, congrats. DW and I had a horrible time finding a good mattress, we bought three over three years.

[Anonymous]

Congrats!

[Kenny]

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@leegreen wrote:
I think the real question here is are you and DH sleeping better? If so you saved money and improved your life, congrats. DW and I had a horrible time finding a good mattress, we bought three over three years.

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So true. I hate my mattress. I should buy a new one, but I don't. I'm the stupid one! lol