Personal Finance

Cancelling CC right after approval..

  • Last Updated:
  • Dec 15th, 2013 6:46 pm
Tags:
None
[OP]
Deal Addict
Jan 2, 2013
1109 posts
196 upvotes
Mississauga

Cancelling CC right after approval..

I applied for the MBNA SC, which was approved.
Today, I read about the cap on the max return one can get from it (it's nowhere in the legal disclosure, or on the website.)

I found an Amex that I like better and would like to go for instead. I know I will take a credit hit when I apply for the new one.

If I call in and cancel a card (I haven't received it yet), will I take a credit hit?
What's the best way to handle this?

EDIT: updated.
19 replies
Sr. Member
Jun 5, 2007
973 posts
205 upvotes
York
apoorv wrote:
Dec 14th, 2013 8:29 pm
I applied for a credit card through Amex, which was approved. A few days later I stumbled across something that I felt suited my needs better.

If I call in and cancel a card (I haven't received it yet), will I take a credit hit?
I probably will when I apply for the new one instead.. What's the best way to handle this.

PS: Different banks, so can't really "switch."
Yes, your "hit" is when you apply for a cc, not when you activate it. Why cancel, esp. if this is your first AMEX



This is from my most recent hard pull on my Equifax Report, the day I applied for the card
2013-10-18 CHASE MARRIOTT VISA (800)265-3675
Deal Addict
User avatar
Mar 31, 2009
1098 posts
613 upvotes
The credit hit doesn't happen when you receive the card or activate it, it already would have happened. So just call and cancel and get a different card if you want to. The credit hit probably doesn't matter at all, I wouldn't worry about it.
[OP]
Deal Addict
Jan 2, 2013
1109 posts
196 upvotes
Mississauga
What about ending up applying for 2 cards in such quick succession? I mean, I have a decent credit score but still..
Deal Addict
User avatar
Dec 10, 2005
3080 posts
533 upvotes
Your credit score will definitely get lowered if you apply two cards so quickly, but keep in mind that this will just be a temporary hit and does not matter unless you are looking to obtain a loan of some sort in the near term.
Deal Fanatic
Apr 16, 2007
7121 posts
2023 upvotes
Financial District B…
apoorv wrote:
Dec 14th, 2013 8:43 pm
What about ending up applying for 2 cards in such quick succession? I mean, I have a decent credit score but still..
Creditors only see priors. If you we're to apply for another card they would see the newest credit inquiry from MBNA and you score would only be affected by that recent inquiry.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Deal Fanatic
User avatar
Feb 19, 2010
5909 posts
2635 upvotes
apoorv wrote:
Dec 14th, 2013 8:43 pm
What about ending up applying for 2 cards in such quick succession? I mean, I have a decent credit score but still..
Your credit life is over. Applying for two cards in quick succession is akin to financial suicide. Tough break for you.

Or, OTOH, you can forget about credit scores and live your life without worrying about such ridiculously petty things. Credit scores are waaaaaaaaaaaaay overblown.

Your choice.
Deal Addict
User avatar
Sep 1, 2013
1418 posts
321 upvotes
New Tecumseth, ON
I applied for the MBNA SC, which was approved.
Today, I read about the cap on the max return one can get from it (it's nowhere in the legal disclosure, or on the website.)
I just did the same thing. Sent in an application last night and found out today about those limits. Where are these limits posted on their website? Can't find anything about it.
Deal Fanatic
User avatar
Aug 29, 2012
5708 posts
3755 upvotes
The credit underwriter was suggesting in the ask me anything about credit thread to wait a bit until the card has a better status (R9 I think?), so that the card is shown as having being closed on your request on your report. You might want to buy a coke or something equally unimportant, and then cancel it in two-three months.
[OP]
Deal Addict
Jan 2, 2013
1109 posts
196 upvotes
Mississauga
Thanks poutinesauce (I think you mean R1-R3 though). Your answer was actually helpful, unlike Conquistador's "live like a hippie" advice.

Aethean - I called and asked them. Apparently it's not considered important enough to be in the detailed description, and you'll only find out about this when you get the booklet with the card. I almost want to cancel just on principle of that.
Member
Jun 10, 2010
336 posts
111 upvotes
If the limits bother you but you would want the card otherwise just apply for a second of the same card. If your credit score is reasonably decent MBNA gives away those cards very liberally.

Besides, with a decent spend they'll upgrade you to the world soon enough anyways which lifts the $1250 limit.
Deal Addict
Dec 13, 2007
1489 posts
47 upvotes
Toronto
Conquistador wrote:
Dec 14th, 2013 10:47 pm
Your credit life is over. Applying for two cards in quick succession is akin to financial suicide. Tough break for you.

Or, OTOH, you can forget about credit scores and live your life without worrying about such ridiculously petty things. Credit scores are waaaaaaaaaaaaay overblown.

Your choice.
+100500

I can't believe so many people obsess about credit score. Geez, I don't know what is mine. All I need to know is that one time missed a payment or two (due to being preoccupied with more important stuff) CCs started to reduce my credit limit. Naturally. Oh, well, 3-4 months later they increase it back, and more credit offers pour in, which I don't need.

People, there is life beyond credit score. Why the hell you even need it? To be qualified for more debt? Makes no sense.

Nobody is suggesting to live like a hippie. Just not to be paranoid about petty things in life.
Newbie
Jun 3, 2013
72 posts
12 upvotes
slavka012 wrote:
Dec 15th, 2013 10:38 am
Geez, I don't know what is mine.
This is irresponsible imo. If there's a wrong information on your Equifax or TU, or what about identity thieft? It's a prevention matter. Le me tell you, you would have a different opinion if wou were declined for a rent, a car loan, or a cell contract...
Banned
Dec 11, 2013
97 posts
17 upvotes
Winnipeg
farmand wrote:
Dec 15th, 2013 1:25 pm
This is irresponsible imo. If there's a wrong information on your Equifax or TU, or what about identity thieft? It's a prevention matter. Le me tell you, you would have a different opinion if wou were declined for a rent, a car loan, or a cell contract...
In his defence though, you don't need to know your score to see if there's an error in your credit report. Both bureaus do offer free reports that do not disclose your score. This is all you need to check for errors or fraud. Mind you, it is much easier to order it online, not everyone wants to part with that $24 to do so.
Sr. Member
Aug 29, 2004
871 posts
145 upvotes
Conquistador wrote:
Dec 14th, 2013 10:47 pm
Your credit life is over. Applying for two cards in quick succession is akin to financial suicide. Tough break for you.

Or, OTOH, you can forget about credit scores and live your life without worrying about such ridiculously petty things. Credit scores are waaaaaaaaaaaaay overblown.

Your choice.
Exactly. If you pay your bills on time your score will be good. Your credit worthiness is predicated just as much (if not more) on other factors such as income

But....
farmand wrote:
Dec 15th, 2013 1:25 pm
This is irresponsible imo. If there's a wrong information on your Equifax or TU, or what about identity thieft? It's a prevention matter. Le me tell you, you would have a different opinion if wou were declined for a rent, a car loan, or a cell contract...
This isn't a bad point, but also somewhat flawed. You would need to subscribe to a monitoring service for this to really have any effect, as checking it once a year won't help the time between checks.

Top