Long story short I got convinced into getting a Bob’s Discount Furniture stores credit card for a couch I really liked. I then took some time to look into reviews (which I should have done before) but I discovered how terrible this company was. The damage is already done but I am 100% sure I’m not getting any of their furniture. How badly will it affect my credit to close the account right away?
Cancelling a store credit card immediately
byu/AdventurousTiger13 inCreditCards
Posted by AdventurousTiger13
8 Comments
Did you buy the couch? Most people would apply for a store card when they were going to make an actual purchase. Looking into it, they hive some period of interest free financing.
That being said, if you hate their furniture and aren’t going to buy anything, then there isn’t a point to the card. However, an open line of credit with no balance does lower your utilization. So, it’s not the worst thing in the world.
You’ve probably already taken the hit from opening a new account. If you close it, you’ll take a hit because of the lowered available credit//change to utilization. Neither of those will hurt you long term. You can take that second hit now, or you can wait.
> but I discovered how terrible this company was
You mean Bob’s or Wells Fargo?
Typically speaking, lenders will often retaliate against people who immediately close cards by blacklisting them for a while. Wells Fargo, who issues the Bobs card, is one of the most prominent lenders in the country and wouldn’t want to be on their bad side.
Ultimately up to you. The “damage” to your credit is done upon opening, not, closing cards.
Opening a new credit card typically causes your Average Age of Accounts (AAoA) to shorten, your Age of Youngest Revolving Account (AoYRA) to reset, and at least one new hard inquiry to appear on your credit reports (sometimes multiple). This all results in a temporary credit score drop. It also affects lender velocity rules such as Chase’s 5/24, influencing how likely you are to be accepted for another credit card soon after opening this one.
Closing a credit card does not undo *any* of those changes. The damage there is done. But closing a card also does not cause any additional damage atop it all. Credit cards closed in good standing continue to contribute to aging metrics like AAoA and AoYRA for 10 years, and even after that span of time your credit will hardly be affected as your other cards will all be 10 years older than they were.
The main thing to consider before closing a card is whether you think maintaining good relations with the issuing bank is important. Banks do not like it when people close a new credit card account shortly after opening it, and may blacklist you from being accepted for future cards from them for doing that. If we’re talking about a major lender like Citi, Wells Fargo, Capital One, etc. I would suggest keeping the card open for at least a year. If it’s a lender you do not care for, or especially if it’s a predatory lender, then you’re fine to close the card whenever.
It won’t. Close the card.
If you didn’t purchase anything on it, just let it sit and close on its own. The “damage” from opening the card is already done (in progress if it just happened). Let it age and help your utilization.
Cancelling the card will end up as a dead weight on you Average Age of Accounts, which is not a large contribution to your credit score but does play a factor and can be an important factor in some cases. The best course of action is to not use the card and let the bank close it due to inactivity which is usually 6-12 months
Assuming you have established credit history elsewhere, closing this account would do negligible damage to your score in the short-run and temporarily at that, while in the long term you will be **much** better off *without* consumer finance accounts.
Basically IF you are going to get a store-branded card (especially one NOT on one of the 4 major networks), make sure it’s one for stuff you buy a lot of/use regularly (i.e. into music a lot so you have a Guitar Center or Sweetwater card).
The one-off’s are not worth it in the long run so nip them in the bud and move on.
Just leave it. Put it in a drawer and forget about it. The hard pull is done, there’d be no point in closing it now(unless there’s annual fees etc. attached to it). Just take it as a lesson learned about being talked into credit you don’t want or need.