Yes, you can refuse your card after approval, but that will hit your credit score hard. So, it is good to decide before applying for the card, if you are 100% sure that you are needy with the credit card then only go-ahead to apply for the credit card, remember that decision making is the main criteria, though you have options whether to accept or to refuse the card, but these options also have consequences that have to be faced in the future, so think before applying.
Applying for a Credit Card
- When a consumer applies for a credit card, the credit card company will do an inquiry about the consumer.
- The credit card issuer will inquire about the consumer's credit report.
- After checking your credit report and if you are approved, they will send your card to your email.
If you have non-prime or near-prime credit
- If you are new to the credit card world and you have no credit history or you may have low credits. But somehow you have managed and got approval for the card.
- But, still, you can cancel the card, but there will be a very bad impact on your credit score.
- You can call the customer care of the company to cancel your card, but I suggest rather than cancelling check for other options like swapping your card to different ones.
- But the cards are not always interchangeable, every company has its own terms and conditions.
- But if you still think you don't need the card you can cancel it but it will lower your credit card score.
When the card comes in the mail
- While applying for a credit card you will not always be clear that what will you get.
- You will be having an idea that what offers you may get from the card issuer after the approval.
- But the final APR rates and credit limit will be revealed only after approval.
- Approval may be online and instant, but the offer will be cleared after you will be receiving your card package email.
- The email has your card and card agreement.
- After checking the agreement, you may not be happy that what you have received because the issuer will approve the card-based on your credit history.
- But you may accept or refuse the card that has been offered to you.
- The consumer can cancel the card at any time for any reason.
- However, canceling the card has its own consequences, that is the effect on the credit score.
Canceling the Card
- If the consumer decides to cancel the new card, the consumer must go through some process of cancelling the account.
- Even if the account has been not activated, the consumer must go through the same steps to cancel it.
- First, call the customer service line and ask the issuer to close the account.
- During the cancellation procedure, check for the fee if applicable for cancellations or any balance left, clear everything before you close.
- Check if there is any fee and clear it and get a written document from the issuer that they have dropped it.
- Send a letter to the issuer documenting with "Closing Date of the Account, Last 4 Digits of the Account, Consumer Name, Date of the call and other required detail."
- Finally check with the company whether they have shut down the account or not and make sure that they have properly disposed of your card and closed it properly.
- During cancelling the card, you may think to change your mind to keep the card.
- But is a good idea to keep the card, especially when you have low credit, and you are looking to rebuild your credit.
- Instead of cancelling, you can call the issuer to negotiate to do the changes.
- Check if there is any chance to lower your APR or to raise the credit limit.
- If all this cant is dome immediately check with your issuer can you get these done in the future if you have changed to good financial habits.
- If you are a responsible user, the issuer will open the changes for you and will accept your request in the future.
- Also, remember you need not use cards frequently, do small purchases, and remember that you must build the credit.
Consumer remember your credit card should meet your financial need, if you get a card that does not meet your expectations, you need not live with it. You can try to negotiate with the card issuer and make the deal that works for you. If not, you can refuse and cancel it. But be careful before applying. Yes, you have options whether to keep the card or to cancel, but cancelling the card has consequences that it has bad effect on credit score. So, it is better to be sure before applying the card to avoid all the consequences.