I think I made a mistake. I was reading a post on here and learned that Crown Jewelers has automatic approval and does not do a credit check. I applied and got a 1500 dollar credit line. A few weeks later I checked my credit scores (average about 660) and they all dropped, one dropped like 7 points. I now find myself with a line of credit that I do not wish to use. Will it hurt me or help if I cancel the card. I currently have a zero balance. Thanks
Keep it. Make small purchases, immediately pay the full balance whenever the bill comes. Your score probably dropped because they ran an inquiry on you. Keeping the card and paying in full over months will increase your score way beyond the 7 points that the inquiry knocked you down by.
Agreed, a new account will have a negative effect on your FICO, but even if you close it now, the deduction won't be undone. If they don't charge an annual fee I would let it sit - especially if you are rebuilding.
Absolutley let it sit, thats adding 1,500 to your utilization & a positive reporting tradeline. CJ was one of my first credit lines. I was initially approved for 1500, bought a cheapie necklace, paid it off & let it sit. It is now a 500 CL reporting positive every month although it has stopped reporting to Equifax for some reason. The reason for the drop from 1500 to 500 was because I didn't pay my purchase out for the entire 6 monthes. It was a great help in raising my scores after I started credit rebuilding. Good luck Tegleg
