Should I cancel a credit card before activation?

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4 posts
MileHighClub
 
Posts: 2
Joined: Tue Jun 12, 2012 4:34 pm
Location: NYC

Should I cancel a credit card before activation?

Postby MileHighClub » Tue Jun 12, 2012 5:00 pm

Relevant (?) Info

FICO: 743
Credit Utilization: ~2 percent

Recently, I was on a US Airways flight and was lulled into applying for their Dividend Miles card with a 40,000 bonus miles promotion. After I received it, I called and wanted to cancel before activation because of the annual fee, but I decided to hold off since they agreed to waive it. The card is pretty bad - especially after looking up all of the reviews for it. Will it hurt my credit if I cancelled the card? How long would I have to wait if I wanted to apply for another card? Is there any benefit to leaving it open as an inactive card?


Crashem
Centurion Member
Centurion Member
 
Posts: 538
Joined: Fri Mar 09, 2012 9:29 am
Location: San Francisco, CA

Postby Crashem » Tue Jun 12, 2012 8:31 pm

The card will report whether you cancel it or not. Since there is no AF, I would just keep and cancel before next AF is due. Do what you need to do to get the 40k miles and sock drawer the card. Are there any benefits to the card aside from getting miles? Free luggage etc.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

MileHighClub
 
Posts: 2
Joined: Tue Jun 12, 2012 4:34 pm
Location: NYC

Postby MileHighClub » Tue Jun 12, 2012 11:20 pm

Thanks for your reply. Unfortunately, the card does not allow me to get free luggage or anything else so I guess I'll be cancelling it.

Dues
Green Member
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Joined: Sat Oct 08, 2011 2:41 pm
Location: texas

Postby Dues » Fri Jun 15, 2012 9:41 pm

You'll take a small hit for the hard inquiry made when they checked your credit score before approving you for the card. You also took a hit on your average age of account depending on the age of your other cards and how many you had. If you only had 1 other card and it was 8 years old, suddenly your average account age is only 4 years.... you get the idea

I'm with Crashem, get your 40k miles, enjoy them, then trash it.

Only reason you may want to keep it then would be if they gave you a fairly high credit limit since higher credit limits also help to lower your % utilization.



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