I’m kicking myself for being a bit naïve. I went to Forever 21 to pick up some camisoles (which is rare for me) and ended up signing up for a store card. I thought it was just a regular rewards program, but I should have been suspicious when they asked for my Social Security number.
I’m not well-versed in credit matters and don’t have any other cards. My credit is decent, thanks to my student loans and being approved as a co-signer for a car lease with my parents. Should I cancel the card, especially since I rarely shop there and want to avoid any fees? I’m unsure if opening and closing the card will negatively impact my credit or if keeping it open but unused will have any effect.
When I accidentally signed up for a store card at a retailer I rarely shop at, I faced similar concerns. I initially considered canceling it to avoid potential fees and misuse, but I was worried about the impact on my credit. From my experience, closing a card can affect your credit score by reducing your overall credit history length and increasing your credit utilization ratio. Instead, I chose to keep the card open but not use it, which helped maintain my credit score without adding new debt. I also made sure to monitor my credit report regularly for any changes. If you’re unsure, consulting with a credit advisor can provide personalized guidance based on your specific situation.
If there isn’t an annual cost, closing it will cause more “damage” than simply keeping it and not utilizing it. Never open a “credit card” from a bs business in the future.