I was pressured into buying a mattress set by some agressive salespeople last night. I opened a line of credit so that I could get 12 months with no interest. After reading multiple atrocious reviews on the mattress, I decided to cancel the order, but I guess I am stuck with the credit card. Is it better to close it right away or have the extra credit account with a 0 balance? My credit score was 798 a few weeks ago. I have 5 other credit cards.
Welcome to Creditnet ashbosity! You have a great credit score. What kind of LOC is it, a department store CC, or simply a credit line with a sells-just-one-line-of-items type of store? It's good to have a mix of credit, and since you've already taken the inquiry hit on your credit report(s), you may as well just keep it open for a while.
It is an American Signature Furniture credit card, but I don't think it is a through a major carrier (Visa, MC). I have a $4000 line of credit with them now.
Hi Asbosity - is there an annual fee attached to the card? That would be a good reason to close the account. It's kind of a 2-way street here; you have enough other credit cards open that it shouldn't hurt your score much if you close this new one. Also, because it's new, the effect closing it will have on your score isn't as significant as that of an older card. And yet on the other hand, the new credit line attached to the card likely helped your score by adding a new line of credit. I would rarely advise closing a credit card account, but this instance sounds like one that would cause minimal damage to your credit score. Plus, if you're not sure that you're ever going to actually use it, then it may end up closing on its own because of inactivity down the line, anyways. If you want to cut the chord, I would say do it quickly rather than wait.
Furniture store cards wouldn't carry a V or MC logo on them, they're the same as a department store card. Like I said, I'd keep it open. Your reports took the inquiry, its a nice credit limit, might round out your credit reports, and when the time comes that you need some household furniture, you'll get special offers for card holders. Good point on the AMF Jason. If there's any, close. No need to pay for something you will only get rare use out of.
