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Just canceled 2 cards - what to expect?

clocktick
Valued Contributor

Just canceled 2 cards - what to expect?

I just canceled 2 store cards - Target ($200 limit) and Walmart ($500 limit).  I canceled because I feel I applied for them in haste, both within the last month.  Another reason is because I didn't want too many store cards as I have a Lowes, Zales, Kays and Macy's card as well.  I read on here it's practically impossible to get a CLI with them, especially Target, and my CLs were so low to begin with I didn't think it was worth it.

 

On a side note, when I called to cancel the Walmart card the automated system stated my limit was $700 interestingly enough.  I'm wondering how badly, if at all, this will affect my scores?  I believe history counts for closed cards?  I'm saving my inquiries for "better" cards that I'll use more often and don't plan on applying for any more for another 2 years. 

 

Walmart stated I could re-open the card where Target stated my closure was final.  Did I close one/both of them in haste just as I had opened them?

 

Any input would be appreciated.

 

Thank you.

11/30/08 TU 648 EX 672 EQ 656 SEPT 2014 TU 787 EX 789 EQ ???
Amex BCP $24.1K/Clear $8.5- Sallie Mae $27.5 -Cap One QS $7.5 - Chase Freedom $7.5/United $5k/CSP $20k/Ink- Citi DP $9.5/Dividend $13k/HHHx2 $15k/16.4/Reserve $4.5k Best Buy $1940 HD $1701- Discover IT $15k - Elan $8k GEMB Lowes $20k - Macy's $2k - Kohl's $800




Starting Score: 648
Current Score: 736
Goal Score: 765


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2 REPLIES 2
FaircreditguyFL
Established Contributor

Re: Just canceled 2 cards - what to expect?

Your FICO took a hit when you applied - unless you are over the magic number - and you will take another blow when the card hits your credit report.  This is why it is best to ONLY apply for the cards you need and will use.  You lowered your average age for naught.
Message 2 of 3
score_building
Senior Contributor

Re: Just canceled 2 cards - what to expect?

many of us, at least i have, applied for a card in haste in the past.  these things happen sometimes.  chalk it up to experience.

 

if the closed accounts have a zero balance, the score impact should be limited to a hit from an increase in uti (from the loss of the two credit lines) and a hit from decrease in aaoa. you may at least be able to make up the uti loss w/o additional inqs by requesting cli's on some of your other accounts if they are eligible... so (depending on the new aaoa impact and how the closures effect your uti ratios) any damage should be rather minimal and not permanent as you build.

 

unfortunately, you can't "save" the 2 inqs. from the closed accts. for better cards as you had hoped.  you will of course have a shot at better cards on new inqs. (apps.),  but once you've applied for the cards you get the inqs for up to 2 years even if you subsequently close the accts. the 'damage' is done so to speak.  as you can see, it is often inadvisable to close accounts that do not have fees even if they are not your favorite choice in hindsight. you've aleady taken the inq and new acct. hits and the accts. remain on your cr for up to 10 years anyway so  generally speaking the upside of closing (and wasting the inqs) is v. limited.

 

a great resource from fused called "closing credit cards" is stickied at the top of the cc forum.  i urge you to peruse it if you want to have a more complete understanding of how to close accounts the right way.  i bet you'll be fine on these low limit loses either way, but i personally would reopen if possible.  i know it can be a challenge, but try not to let any outside pressure make you feel rushed into apping in the future.  gl!

 


@clocktick wrote:

I just canceled 2 store cards - Target ($200 limit) and Walmart ($500 limit).  I canceled because I feel I applied for them in haste, both within the last month.  Another reason is because I didn't want too many store cards as I have a Lowes, Zales, Kays and Macy's card as well.  I read on here it's practically impossible to get a CLI with them, especially Target, and my CLs were so low to begin with I didn't think it was worth it.

 

On a side note, when I called to cancel the Walmart card the automated system stated my limit was $700 interestingly enough.  I'm wondering how badly, if at all, this will affect my scores?  I believe history counts for closed cards?  I'm saving my inquiries for "better" cards that I'll use more often and don't plan on applying for any more for another 2 years. 

 

Walmart stated I could re-open the card where Target stated my closure was final.  Did I close one/both of them in haste just as I had opened them?

 

Any input would be appreciated.

 

Thank you.


 

Message Edited by score_building on 01-01-2009 12:59 AM
DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover
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