Closing Credit Card before activation?
 

Hello every one,

I just have a quick question for those of you with a little more experience in the whole credit world.

My sister applied for a mastercard cc through paypal(i know). I am not very familiar with this particular credit card but i don't think it has very good reviews. Is this even a good credit card? i don't think their Bank is the best out there. Anyway, she just informed me about her approval of this CC and that she should be receiving it in the mail any day. She was approved for a $2000 credit line. BUT, i personally think that she should not even activate it and cancel it.

My question is.. if she does end up canceling it, will it have a negative impact on her credit? or would it not even count since she won't be activating it? She has a capital card cc and two store cc's.

Thanks in advance to anyone that can give me any suggestions on this :D

Re: Closing Credit Card before activation?
 

i dont know much about credit card and this may not answer your question but i want to say that i use paypal debit mastercard for many years probably since 2005/6 until now. no problem for me. and their customer hotline support is superb, very little wait time when you login to your account before calling for initial verification.

they are FDIC insured just like any other banks, so i wouldnt worry.

Re: Closing Credit Card before activation?
 

Have her activate it and use it. Just tell her not to apply for any more credit cards especially low tier companies. There has already been a hard inquiry placed on her credit report and this account will be added shortly to her report. Cancelling it will further negatively impact the score. If its a paypal CC, that's really not a bad one. The ones you want to stay away from are the likes of First Premiere..Credit One etc.

Re: Closing Credit Card before activation?
 

I see, Ok thanks for sharing your experience with them.

Re: Closing Credit Card before activation?
 

Thanks so much for your advice 2face! I appreciate it. I really wanted her to try discover it but i guess now she will have to wait. How long do you think she should wait (if at all) to apply for a discover it CC? a year perhaps, or she should just stop and keep the two main CC's that she has?

So first premier and credit one are not so great? my father in-law has both of those along with Discover it, american express and who knows what other ones. He has about 7 credit cards in total. I keep telling my wife to make him stop applying for cards b/c in the long run that will affect his credit wouldn't it? i mean, eventually too many open credit lines pretty much lets creditors know that one is desperate for money that they don't have. Wouldn't that lower ones score in the long run?

Re: Closing Credit Card before activation?
 

My advice would be for your sister to keep the credit card, perhaps use it to maybe purchase gas/lunch, and so on from time to time and pay it off before the bill arrives. It will help her credit score and may come in handy one day for emergency purposes.

Re: Closing Credit Card before activation?
 

Thanks Dream. Yes, i'm just going to tell her to keep it. I was just concerned about her credit. She has been doing good at building it and i didn't want a bad card hurting it. This one is not so bad after all.

Re: Closing Credit Card before activation?
 

The activation is just a way of making sure the customer received the credit card. It will hurt her credit report by a small amount if it is canceled. Her credit score should of already went down since she applied for a card. Out of those $2,000 she needs a utilization rate of around 10% to 20% in order for her credit score to be good. Can she expend $200 every month and pay it off after the statement comes in with no problems?

There are a lot of sources on google where you can get an answer to your question.

https://www.creditkarma.com/question...-i-activate-it

Here is the google search in regards to your question:
https://www.google.com/search?q=does...m=122&ie=UTF-8

Re: Closing Credit Card before activation?
 

It would just be better to leave it as it is. Paypal is not a bad company and there are some more worse choices. As with any credit card, it is good to use the least possible amount to yield the highest credit scores. Typically anything 1%-10% would be the range to shoot for, so a balance of anywhere between $20 to $100.

Spend wisely, because it should be an extension of your ability to pay. You are essentially borrowing the money you would have in the future to pay for something now.

Re: Closing Credit Card before activation?
 

PAYPAL is not a bank. Common people, we make our whole community as a whole look kinda stupid when we make statements like we know a topic we really don't.