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SwellTiger

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Best For Credit: Cancel New C.C. or Hold?
I recently applied for a, 0% for 24 mo., C.C. to pay down an existing card with a high rate. The card co. would not tell me the $ limit until I applied. When I received the card it's limit was $1,800 which is useless for my purposes. Is it better for my credit score to cancel the card immediately or hold onto it (unactivated) for some specific amount of time? Thanks

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At current, it lowered your average age of accounts which will have a negative impact on your score.  You already took the hit for the hard inquiry, so nothing can salvage that.   If you retain the card, the additional line of credit will decrease your credit utilization as long as you do not use the credit line.  If you cancel the card without activation, it was never an account thus, you score would only be reduced by the hard inquiry.    Over the course of 6 months to a year, having the card can increase your credit score.   If you can afford the additional payment, you could save the interest on 1800 per month which could help you get out from under the higher interest card more quickly.   What ever you do, either don't use the 1800 new line or don't move your old card balance any higher with a deduction.  Good luck with your decision.

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SwellTiger

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Thankls so much. It's all good for thought. One question: if I do transfer  $1,800 from the higher card, is it best to string out the payments for at least 6 months or better to pay it as quickly as possible?

Thanks again!

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