So, you’ve applied and got approved for a shiny new credit card. But hey, let’s say you’re having second thoughts.
Maybe it’s the terms and conditions or just managing another card. Now you’re probably wondering, can you cancel the credit card right after applying?
In this article, we’ll discuss your options and the potential risks of canceling a credit card you just applied for.
Accepting a Credit Card Offer
When you apply for a credit card, they’ll either accept or deny your application. So, basically, the credit card is like an offer, and when you submit your application, you’re saying, “Yeah, I’m cool with that.”
Typically, your account becomes active right after your application gets approved. You won’t have a chance to say no to the card unless you can cancel your application while it’s still pending.
Canceling a Pending Credit Card Application
To cancel a pending application, you need to contact the issuer’s customer service by phone or email.
However, this may not always be possible, depending on how far along your application is or who your issuer is.
If your application hasn’t yet been processed, this can be an easy way to cancel a credit card.
In some cases, issuers may help you change your application to a new card or downgrade you to one with more favorable terms.
Risks of Canceling a Credit Card You Got Approved For
If your application is approved and the account is activated before you have a chance to contact the card issuer, your only option for closing it is to cancel the account as you would with any other credit card.
But closing your account too quickly could actually have a negative impact on your credit report and score.
So, it’s super important to think things through and consider the pros and cons of canceling the card before you make any moves.
Pros of Keeping the Card
Cons of Canceling the Card
Lower credit utilization rate
Raising credit utilization
Diversifying credit mix
Negatively impacting the new credit part of your score
Access to perks and benefits
Loss of perks or benefits
How To Cancel a Credit Card You Got Approved For
If you’re dead set on canceling, the process is pretty much the same as with any other card. To close the account, just reach out to your issuer either in person at a bank or give them a call.
Make sure there are no outstanding fees or balances, and request written confirmation from the issuer that the account is closed.
To verify the card’s closure and assess its impact on your credit score, check your credit report approximately a month later.
what is the Effects on Your Credit Score?
Canceling a new card can be both inconvenient and time-consuming, with the primary disadvantage being potential harm to your credit score and history.
When applying for a new credit card, the issuer may perform a hard credit check, which could lower your FICO score.
Opening a credit card and then promptly closing it can negatively affect scores with a limited credit history, potentially impacting your eligibility for loans in the future.
Alternatives to Canceling a New Credit Card
If you change your mind about a card but don’t want to cancel and risk lowering your credit score, consider the following options:
- Keep the card and use it responsibly to improve your credit score.
- Reach out to your issuer and ask for the credit line to be lowered if you’re concerned about overspending.
- Request a downgrade or transfer to a different credit card with better terms, like a lower interest rate or better perks.
Conclusion
Canceling a credit card right after you apply isn’t the end of the world, but it’s not something you want to make a habit of.
Read credit card terms and conditions carefully when shopping for a new one, and only apply for cards you’re sure you want to stay with long term.
