Closing a Card That Has Never Been Used

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8 posts
orangeskittles
 
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Closing a Card That Has Never Been Used

Postby orangeskittles » Tue Jan 28, 2014 10:08 pm

Hello, apologies if this is in the wrong place.

Three days ago I was instantly approved for a $2000 credit limit for the Virgin America Visa. Today, I found out that my hours are being severely cut at work until at least May.

I haven't made a purchase on the CC yet but am wondering if it would be okay to just cancel it, or would that hurt my credit score. My score is 697 and I currently have on CC open that is pretty close to the max limit ($2k as well).

My parents will help me with my monthly bill but will only pay the minimum and the Virgin America card has a pretty high interest rate.

Would it be better to keep it open and just use it every so often or should I close it before even using it once.

Thanks


TheLethargicAge
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Postby TheLethargicAge » Wed Jan 29, 2014 8:23 pm

Don't close it. You already took the hard inquiry so you might as well keep it. Use it once a month, but definitely don't close it.
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MemberSince99
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Postby MemberSince99 » Wed Jan 29, 2014 9:58 pm

Agree with Lethargic, just don't spend more than you can afford but keep it. You could get your hours increased again or get another job. May will be here before you know it. No point to closing it just because of that.

JoDa
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Postby JoDa » Wed Jan 29, 2014 10:55 pm

There seems to be no reason to close it. May is less than 6 months away, so you could probably mothball it until then and it would be fine. If you were worried about it being closed, you could charge a few dollars THAT YOU WERE GOING TO SPEND ANYWAY (gas, groceries, similar things you HAVE to buy) on it each month and pay it off right away and be no worse for the wear.
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sakhalin
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Postby sakhalin » Thu Jan 30, 2014 3:27 am

Don't close it, it'd be a waste. Sockdrawer it or use it sparingly and pay in full to avoid the high interest rate. Keeping this card open will give you a higher credit score because your total utilization will drop due to total increased limits.

You won't have to pay your annual fee until a year from now.
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Obi-dan
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Postby Obi-dan » Thu Jan 30, 2014 8:10 am

Agree with everything people have said here unless (and only you can answer this question) you are concerned that you can't let it lie in the sock drawer. Something about the words in you post gave me a sense that you may feel like you couldn't just sit it aside. I'd i am wrong, I apologize and follow everyone's advice if you are concerned that as the cash flow drys up the temptation to use it will be too great, close it.

Hope your job situation improves quickly.
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takeshi
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Postby takeshi » Thu Jan 30, 2014 10:44 am

orangeskittles wrote:I haven't made a purchase on the CC yet but am wondering if it would be okay to just cancel it, or would that hurt my credit score. My score is 697 and I currently have on CC open that is pretty close to the max limit ($2k as well).

Get the utilization on the other card down when you can and definitely do not close the Virgin card until you have done so. Closing the Virgin card will make your utilization worse than it already is.

MemberSince99
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Postby MemberSince99 » Thu Jan 30, 2014 12:37 pm

takeshi wrote:Get the utilization on the other card down when you can and definitely do not close the Virgin card until you have done so. Closing the Virgin card will make your utilization worse than it already is.




I am not at all trying to be a jerk, I don't have to try it comes naturally, but I knew as soon as I saw you'd written what you said would be utilization, and sure enough I read the post and tada - I'm psychic (not psycho, though ok damn close). It's like one of those things you can just predict, like MemberSince99 has a 50/50 chance he will close a new card within 6 months of opening, Takeshi will talk about utilization. Obama will lie with everything he says, and if you have a great credit score Discover will give you an insultingly low limit on a card. Ok now that I've offended half the forum it's probably time to shut up!



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