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Decline a CC with $500 limit form my CU???

dfrancoise_
Member

Decline a CC with $500 limit form my CU???

 

I was approved for a creidt card with my credit union for a measly $500, albiet my lowest interest rate, but I am wondering if its worth it to add this card to my credit profile. It doesnt have much to offer except cash back, but all of my current cards offer cash back. I likely will never use this card, it will just add to my revolving available credit. 

 

I am considering declining it becuase adding this card wold negatively affect my AAoA. However, I just got a new card last month, so I dont think that really matters. This year I really statred to focus on my credit and added three new CCs. 

 

My question is should I accept the card or decline it, and why? Is there anything that I haven't considered in this post? 

 

TIA

FICO Score 8 (6/2016) TU:668 *** EX:672 *** EQ:670
Message 1 of 15
14 REPLIES 14
jacetx
Valued Contributor

Re: Decline a CC with $500 limit form my CU???


@dfrancoise_ wrote:

 

I was approved for a creidt card with my credit union for a measly $500, albiet my lowest interest rate, but I am wondering if its worth it to add this card to my credit profile. It doesnt have much to offer except cash back, but all of my current cards offer cash back. I likely will never use this card, it will just add to my revolving available credit. 

 

I am considering declining it becuase adding this card wold negatively affect my AAoA. However, I just got a new card last month, so I dont think that really matters. This year I really statred to focus on my credit and added three new CCs. 

 

My question is should I accept the card or decline it, and why? Is there anything that I haven't considered in this post? 

 

TIA


Congrats on the approval? Regardless whether you accept or decline it the account has been opened and will report to all bureaus.

Message 2 of 15
Pway
Valued Contributor

Re: Decline a CC with $500 limit form my CU???


@dfrancoise_ wrote:

 

I was approved for a creidt card with my credit union for a measly $500, albiet my lowest interest rate, but I am wondering if its worth it to add this card to my credit profile. It doesnt have much to offer except cash back, but all of my current cards offer cash back. I likely will never use this card, it will just add to my revolving available credit. 

 

I am considering declining it becuase adding this card wold negatively affect my AAoA. However, I just got a new card last month, so I dont think that really matters. This year I really statred to focus on my credit and added three new CCs. 

 

My question is should I accept the card or decline it, and why? Is there anything that I haven't considered in this post? 

 

TIA


Congrats on the approval.  You have already taken the HP for the card.  I would keep it and see if it grows with you.  Whether you keep or close this card is going to show up as a tradeline on your reports.  Yes it will affect your AAOA but the damage is already done.  It is important to remember that only app for cards that you are going to use.  

Barclay Reward MC 750|Cabela's 1k|Capital One QS1 3.4k|
|Sony Card 3.5k|
Message 3 of 15
CatOfSpades
Frequent Contributor

Re: Decline a CC with $500 limit form my CU???

I'm a weird one - I closed a card earlier this year before it even showed up in the mail. I don't think there's a point in keeping an account open that you're not going to use. It won't affect your credit much. And really, who cares if you have an inquiry and nothing to show for it. The inquiry will be gone in two years. Of course, credit llimits can grow in 2 years as well. But I also don't think there's a point in having overlapping rewards. If you're getting the same rewards structure or better with another card, there's just no point. 

♠Queen of Spades♠
Message 4 of 15
RonM21
Valued Contributor

Re: Decline a CC with $500 limit form my CU???

I'd keep it because of the HP. If the card is known to grow by others in your CU, I think that's be even more of a reason to keep it.
                

Total CL: $306.1kUTL: 3%AAoA: 6.8yrsBaddies: 0Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping

BoA-55k |DISC-40.6k | PENFED-38.4k | AMEX-37k | NFCU-37k | LOWES-35k | ALLIANT-25k | BARCLAYS-15k | CITI-13.7k | CHASE-10k

Message 5 of 15
dfrancoise_
Member

Re: Decline a CC with $500 limit form my CU???

Thanks CatofSpades. That's a good point and that was the reason I considered decliningthe card. On the other hand, it may grow in two years, and I might be more inclined to use that card since it has a lower APR than all my other cards. 

 

I'm probably making a bigger deal of this than it probably is. I know some of you are thinking "just keep the damn card!" Smiley Happy 

 

 

FICO Score 8 (6/2016) TU:668 *** EX:672 *** EQ:670
Message 6 of 15
SouthJamaica
Super Contributor

Re: Decline a CC with $500 limit form my CU???


@dfrancoise_ wrote:

 

I was approved for a creidt card with my credit union for a measly $500, albiet my lowest interest rate, but I am wondering if its worth it to add this card to my credit profile. It doesnt have much to offer except cash back, but all of my current cards offer cash back. I likely will never use this card, it will just add to my revolving available credit. 

 

I am considering declining it becuase adding this card wold negatively affect my AAoA. However, I just got a new card last month, so I dont think that really matters. This year I really statred to focus on my credit and added three new CCs. 

 

My question is should I accept the card or decline it, and why? Is there anything that I haven't considered in this post? 

 

TIA


I think you should keep it

 

1. Credit union credit cards have better terms

 

2. It will grow

 

3. It's probably already in your report, so closing it won't affect your AAoA

 

 


Total revolving limits 663000 (585000 reporting) FICO 8: EQ 716 TU 747 EX 713

Message 7 of 15
CreditDunce
Valued Contributor

Re: Decline a CC with $500 limit form my CU???

Are they giving you the option to decline the card?  As in if you decline, they will not open the card and it will not show up on your reports.  I ask because I had that option for my last CU card I app'd for.  If so then I would decline if you are not going to use the card.  

 

If it is going to show up on your report, I would keep it open for two years (assuming no AF).  Then decide if you want to close it or not.  I don't like closing cards so soon after opening them.  Not that FICO cares if you close the card right away. 

Message 8 of 15
julie5
Frequent Contributor

Re: Decline a CC with $500 limit form my CU???

I wonder what was the limit that you expected?
also...I see that you have several other cards.
seems like you didnt think it through (my specialty).
so don't compound the small error in judgement by jerking around a credit union.

Very few here on this site complain about CUs.it will likely grow...and it is your lowest rate

Message 9 of 15
BrutalBodyShots
Super Contributor

Re: Decline a CC with $500 limit form my CU???

What are the limits of your other cards?  CU's are usually pretty good at raising limits over time and as stated above their interest rates are favorable.  The more important concern I would have is why the CU gave you a SL of only $500 (especially if some of those other cards you have possess higher limits)?

Message 10 of 15
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