Community Chat

[SahmIam]

@missy1  Thank you for the link; that helps but in the end, we still don't know how her report will be affected.

The other part is that whe was offered and AGREED to zero interest but received a card with almost 30% interest. NO WHERE did she agree to this (we all read it over carefully). Bait and switch it comes off as and it hurts HER, not the bank. That was something that concerned all of us because what do you do whent THAT happens?

[Helen852]

Each month financial institutions send to the reporting credit agencies reports the account activities of their customers.  The Credit Agencies have guidelines and metrics that they use in order to score the customers. Each one, in my experience, is slightly different.  

After a month or two I would request a credit report to see if the said account is being reported.  If it is, you can open a dispute through the appropriate credit agency that the account isn't officially opened or active.  

[millieshops]

@SahmIamFor how long was the 0%?  Not forever I'd think.

Also, the percentage doesn't hurt as long as she pays the account in full every cycle.  Just don't miss by even a day because as a new customer, you have no leverage to say I'm a good customer and you should waive the interest.

If it's a reputable company, once you have used the account for a few months and paid on time each month, you can request a lower interest rate.  Sometims that works.

If it's not a reputable company, I'd cancel the new card. It's not worth later hassles.

[SahmIam]

@millieshops the 0% was for at least a year. The reason she wanted to consolidate was because it was a struggle to pay the minimum each month and she wasn't really paying down the debt due to the high interest rate on both cards. Consolidating them into one debt with zero interest meant she could pay a quite a bit less but have it ALL paid off in the time allowed without interest, keeping her excellent score and not being under such stress.

As it stands now, she's not going to use it and want's to return it but the banks CS doesn't know how to do this (at least not the ones she's spoken with). She doesn't want or need another credit card especially with one just under 30% interest. 30% interest instead of ZERO is a pretty HUGE deal.

[gailcoco]

To complain about this bait and switch:

http://www.consumerfinance.gov/complaint/

Good Luck, Gail

[SahmIam]

@gailcoco  OH MY!!! THANK YOU!!!!!!!!!!!!!!!!!!!!!!!!!

[KathyPet]

The inquiry from the card issuer will be part of your credit history.  That may or may not affect your credit score depending on how many other credit inquiries you have had recently.   I opened a Toys R Us credit card in order to qualify for a 10% discount on a expensive toy I was going to order from them for my grandson. I did not activate the card and ended up getting the item elsewhere.  I wrote to them and returned the card cut in half and advised them to cancel the card.  The account now shows as "closed  at consumer's request " on my credit bureau report

[SahmIam]

@KathyPet  Thanks Kathy. : )

[millieshops]

@bri20   I agree with you.  Opening the card and using it even for a tiny amount every month actually raises the amount of credit you have and as long as you pay off that tiny bill each month, doing that lowers the percentage of credit you are using.  That's how to raise a FICO score!

@SahmIamIf you're trying to pay down debt, even that tiny amount ($10 for example) that you spend on the new card should be for things you have to buy (milk, peanut butter, fruit, etc.).  Pay it off on time every month.

Meanwhile, I'd be calling the number on the back of the card and trying to find out what happened to that 0% interest.  If it's not available and it may not be if your credit rating is low, I'd still keep the card, I'd still activate it, I just wouldn't transfer my balance to it.

Opening a new card or closing a new card really doesn't have all that much affect on your credit score.  Having just ONE late payment is way worse.  And don't close a lot of old cards at one time -  that dings more - now you have less available credit and your usage percentage will go up while your FICO will go down.

[millieshops]

@SahmIamI understand what she wants to do and I agree it would have been great to get that 0% interest to help pay down her debt.

Unfortunately, I think the reason she didn't get the 0% was because she has the debt.

Do you understand the math of what I was saying about keeping the card even if you don't use it or just use it for small, absolutely necessary purchases.