Did you know every time you sign up for a card it completely changes your debt to income ratio? Usually for the worse...having high balance open lines of credit can lower your score. You also often have to submit your cancellation in writing, several times - and always by certified mail, because often they will not comply. And then you have to get your credit report frequently to verify that its been cancelled, and make sure that they specified "cancelled by consumer" and not by the lender. That can be a real struggle sometimes. Plus, they want you to keep the card and will often keep you on the phone for 20 minutes with you screaming at them at the end just to cancel! I once had to threaten to report the CSR to his supervisor because he refused to give me the address of the department where I had to send my cancellation letter! Whether or not you cancel, those credit cards still show up on your credit report...showing that you often 'card hop', which also lowers your score and looks bad to lenders. And every time a hard hit is made to your credit (like when you sign up for the cards) it counts against you and lowers your score. So when you really need to finance something, like a car, you might end up paying a fraction or 1% higher because of all the store cards you signed up for and cancelled, costing you hundreds or thousands of dollars in the long-run.pinger05 wrote:I do that and when the first bill arrives I cancel the card.CNF2002 wrote:[
Same kind of folks are the ones who sign up for these stupid store credit cards so they can save 10%.
Hows that 10% discount looking now?
