When is a credit card considered officially opened?

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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GabeCR
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When is a credit card considered officially opened?

Postby GabeCR » Tue Oct 15, 2013 6:30 pm

Hi. I've done some searches on a topic that I am very curious about.

Because I applied for 2 credit cards thinking I might get rejected by one. But in case I get approved for both, does that mean I am compromised to open both?

Or is the process of getting approved just a pre-step and then once you get the card and info in the mail is the moment when you really apply and sign up.

I am very cautious with legal and money issues so I do not want to have 2 active credit card contracts going. I just want to make sure that being approved doesn't instantly put you in a contract with the issuing bank and they have all your credit information and it goes into your credit history and everything.


whit
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Postby whit » Tue Oct 15, 2013 10:52 pm

yep

if you apply for it, it is up to the credit card issuer to decide whether they want to accept you or not, and if they do, it's open.

preapprovals are not guaranteed approvals but thats pretty close to what you're describing up there in terms of having the power to choose whether you want to do business with a credit card company or not.

GabeCR
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Postby GabeCR » Tue Oct 15, 2013 11:02 pm

Thanks. Ok so basically if you get a card in the mail and you just destroy it and don't do anything with it, it will never show up in your credit records?

takeshi
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Postby takeshi » Wed Oct 16, 2013 9:11 am

GabeCR wrote:Or is the process of getting approved just a pre-step and then once you get the card and info in the mail is the moment when you really apply and sign up.

Nope. If you only want one open then only apply for one and wait for the results.

As stated above, once approved it's open. Keep in mind that if both are approved then the damage is already done. You've already taken the hit with the inquiries and the hit to AAoA as all this will show up on your reports. I'd suggest keeping both and maintaining them if that's the case.

One can be careful with more than one revolver but it's your call to make.

thom02099
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Postby thom02099 » Wed Oct 16, 2013 11:08 am

GabeCR wrote:Hi. I've done some searches on a topic that I am very curious about.

Because I applied for 2 credit cards thinking I might get rejected by one. But in case I get approved for both, does that mean I am compromised to open both?


This is a bit confusing. In the first sentence, it indicates that you already applied for 2 cards with the assumption that one was going to reject you. But the second sentence is unclear "...in case I get approved for both..." indicates that you didn't get automatically approved. Is that the case? Did you get an instant approval for either one, or did you get a "7-10 day decision" message, or a "30 day" decision message.

Once you get approved, either automatically or in a 7-10 day message, you're approved. Your account starts then. But that's not to say that you cannot close one of the accounts. If you only want one, you certainly can close the other one immediately. However, it will still report on your credit report, and show a notation of "closed by consumer". That in and of itself doesn't hurt you.

I did exactly that with a loan that I opened, just because I needed a quick approval, and then immediately closed it within the first month, when I did a re-fi of an existing loan to include the new one, at a better APR than the fast/first loan. There's now a "closed by consumer" notation on the closed loan TL, but it had absolutely no adverse effect.
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GabeCR
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Postby GabeCR » Wed Oct 16, 2013 11:51 am

Sorry if my statement was confusing.

But I actually learned today I was approved for both a chase sapphire and a BOA cash rewards card. So now my conundrum is, do I activate and use both, or should I just cut one up when I get it in the mail and just go for one.

I found out my credit limit on the BOA is only $1000 to start, so I'm considering if keeping both would be wise. My credit limit on the Sapphire would be $5000.

tigerowl06
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Postby tigerowl06 » Wed Oct 16, 2013 10:58 pm

Use both. You can get 2% cash back on groceries (BOA) and restaurants (CS). I recall that these are your first CCs. It's not a surprise that one has a low limit. If you use it (BOA) as your primary card, you stand a good chance of getting a CLI in 6 months, sans hard pull.
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GabeCR
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Postby GabeCR » Wed Oct 16, 2013 11:28 pm

Thanks tigerowl06. Yeah I am thinking of keeping both and doing just that. Using the BOA for groceries and for autopay to my cell phone. And then I'll use the saphirre for dining out, metrocard and travels.

takeshi
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Postby takeshi » Sat Oct 19, 2013 1:20 pm

GabeCR wrote:I found out my credit limit on the BOA is only $1000 to start, so I'm considering if keeping both would be wise.

It all depends on what you want to do. If you want to build a relationship with BoA then keeping it open and properly maintaining it would be wise. Even "just" $1,000 can be used to build your credit.



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