Is It Bad To Cancel A Card Before Activating it?

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dk11
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Is It Bad To Cancel A Card Before Activating it?

Postby dk11 » Mon Feb 21, 2011 5:23 pm

I just recently got approved for 2 cards. However one is primarily a cash back card so I feel like it would make sense to just keep that one and perhaps cancel the other before even activating. Could doing this have a negative impact on my credit? Would it be safer to just activate both and not use the other at all?


jeffysdad
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Postby jeffysdad » Mon Feb 21, 2011 6:53 pm

No, canceling the card won't be a big deal. But you should have more than one card in case one is lost or becomes subject to a fraud alert and deactivated. For instance, I have eight cards, carry three and use two regularly. That might sound excessive. You should figure out what works for you, but imo it's a good idea to have at least two major cards.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

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Elliot Castro
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Postby Elliot Castro » Tue Feb 22, 2011 12:24 am

You can't cancel a card that you have not activated silly.

dk11
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Postby dk11 » Tue Feb 22, 2011 1:30 pm

well isn't a card still associated with my credit line after being approved even though I haven't activated it yet?

DoingHomework
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Postby DoingHomework » Tue Feb 22, 2011 3:56 pm

dk11 wrote:well isn't a card still associated with my credit line after being approved even though I haven't activated it yet?


Yes, sort of. But not really. I'm not actually sure how that works but if you don't activate it they have no idea you ever received.it.

4srs
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Postby 4srs » Tue Feb 22, 2011 11:06 pm

Wouldn't it be listed as a line of credit that was opened & then closed? So you'd still get that small credit score hit for opening another line of credit?

If the card has no fees associated with it, why not just keep it? It increases your total credit line & increases your credit score in the not-so-distant future.

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Elliot Castro
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Postby Elliot Castro » Wed Feb 23, 2011 5:10 am

If you haven't activated the card, then you haven't closed the final agreement to the card. So how could you get credit score?

You have a certain time-line to activate, before the contract expires.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Thu Feb 24, 2011 7:15 pm

For instance, I have eight cards, carry three and use two regularly. That might sound excessive.


Excessive? Not at all!

:ppp

4srs wrote:Wouldn't it be listed as a line of credit that was opened & then closed? So you'd still get that small credit score hit for opening another line of credit.


The credit check during the application would have already counted as an inquiry. The opening and closing rapidly could bring down the average amount of time you have accounts open.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred



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