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Penalty for closing 1 day old account?

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Anonymous
Not applicable

Penalty for closing 1 day old account?

I am a dumb and opened a Google Store Financing Account with Synchronicity Bank thinking I was getting a loan and not a credit card account (similar to Paypal Credit). I should have read the fine print. 

 

I kind of want to cancel it now. Has anyone done something similar? Any serious repercussion to my credit score outside of the hard pull? I don't want a 1 day old account to weigh down my credit age.

 

As it stands this new line will drop my credit as my credit history length will be cut by 1/4. I need it to be high as possible since I am looking to get a car loan soon. 

Message 1 of 8
7 REPLIES 7
CreditCuriosity
Moderator Emeritus

Re: Penalty for closing 1 day old account?

You have already taken the hit.  Meaning dropping your AAoA(average age of accounts) among other things.  You can close it if you chose or just keep it.  Choice is yours, but won't hurt you to close it as the damage has been done.

Message 2 of 8
xenon3030
Valued Contributor

Re: Penalty for closing 1 day old account?

I did almost the same mistake some years ago. I did not read the comments of the users on the Walmart/Synchrony credit card several years ago and affter application approval, I saw them but it was too late to revert it. The card was difficult to use also for me and I could not even use its SUB in the store (it was erroring and requesting PIN). Instead of closing, I kept it to open by using Amazon reload of 1$ in each quarter. After a few years, the card got moved to Cap1 with a much better card management.

 

Since your card is already accepted, it gets reported to your credit report. I suggest to keep the card (assuming no AF) and use my strategy above to keep it open for a while. If you do not like it, you may PC it in future or close it.


Fico8: EX~EQ~TU~810 (12 month goal~840).
BOA (CCR, UCR), Chase (CFF, CSP, Amazon, CIC, CIU), US Bank (Cash+, AR, Go, Ralphs), Discover, Citi (CCC, DC, SYW), Amex (BCP, HH, Biz Gold, BBC, BBP), Affinity CR, Cap1(Walmart), Barclay View.
Message 3 of 8
Horseshoez
Senior Contributor

Re: Penalty for closing 1 day old account?


@Anonymous wrote:

I am a dumb and opened a Google Store Financing Account with Synchronicity Bank thinking I was getting a loan and not a credit card account (similar to Paypal Credit). I should have read the fine print. 

 

I kind of want to cancel it now. Has anyone done something similar? Any serious repercussion to my credit score outside of the hard pull? I don't want a 1 day old account to weigh down my credit age.

 

As it stands this new line will drop my credit as my credit history length will be cut by 1/4. I need it to be high as possible since I am looking to get a car loan soon. 


I agree with @CreditCuriosity, I did something similar last year, I opened a credit card which was totally unsuitable for my needs and closed it after less than 7 weeks.  It is hard to tell what exactly happened to my credit scores around then because the week I closed the aforementioned card, I opened another one which was much more usable, so add a second new account in less than two months and my eigth hard pull in four months; even with all of that activity my scores only dropped about ten points and then more than recovered two months later.

Chapter 13:

  • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank (now Bank of Southern California)
  • Filed: 26-Feb-2015
  • MoC: 01-Mar-2015
  • 1st Payment (posted): 23-Mar-2015
  • Last Payment (posted): 07-Feb-2020
  • Discharged: 04-Mar-2020
  • Closed: 23-Jun-2020

 

I categorically refuse to do AZEO!

In the proverbial sock drawer:
Message 4 of 8
SouthJamaica
Mega Contributor

Re: Penalty for closing 1 day old account?


@Anonymous wrote:

I am a dumb and opened a Google Store Financing Account with Synchronicity Bank thinking I was getting a loan and not a credit card account (similar to Paypal Credit). I should have read the fine print. 

 

I kind of want to cancel it now. Has anyone done something similar? Any serious repercussion to my credit score outside of the hard pull? I don't want a 1 day old account to weigh down my credit age.

 

As it stands this new line will drop my credit as my credit history length will be cut by 1/4. I need it to be high as possible since I am looking to get a car loan soon. 


It happens to plenty of us. I was at a store, and succumbed to the cashier's pitch to get the company's store card.  A week or two later I realized there was no point in my having that card, and closed it. There's no repercussion from closing it, serious or otherwise.


Total revolving limits 657200 (536700 reporting) FICO 8: EQ 706 TU 710 EX 708

Message 5 of 8
xenon3030
Valued Contributor

Re: Penalty for closing 1 day old account?

Here is my advice. Never listen to the pitch of the store cashiers and request to do your checkout ASAP. It will also help the other people in the line to check out faster Smiley Very HappySmiley Very HappySmiley Very Happy


Fico8: EX~EQ~TU~810 (12 month goal~840).
BOA (CCR, UCR), Chase (CFF, CSP, Amazon, CIC, CIU), US Bank (Cash+, AR, Go, Ralphs), Discover, Citi (CCC, DC, SYW), Amex (BCP, HH, Biz Gold, BBC, BBP), Affinity CR, Cap1(Walmart), Barclay View.
Message 6 of 8
Yasselife
Valued Contributor

Re: Penalty for closing 1 day old account?

@xenon3030 Years ago before I turned 37, I used to say Yes most of the time out of kindness and timidity. Still feels uncomfortable for me to say No, but I push myself to follow my judgment and instincts.






Message 7 of 8
xenon3030
Valued Contributor

Re: Penalty for closing 1 day old account?

It may cost you a few hundred bucks to learn the need to decline the pitches...

 

While the pitches from cashiers look simple, some scammers in some countries can bind a person to e.g. an annual contract with a monthly payment if the person simply says "Yes" or even "No" over the phone. After having a similar incident, I learned to avoid keeping myself in ANY unexpected or unecessary pitches.


Fico8: EX~EQ~TU~810 (12 month goal~840).
BOA (CCR, UCR), Chase (CFF, CSP, Amazon, CIC, CIU), US Bank (Cash+, AR, Go, Ralphs), Discover, Citi (CCC, DC, SYW), Amex (BCP, HH, Biz Gold, BBC, BBP), Affinity CR, Cap1(Walmart), Barclay View.
Message 8 of 8
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