To cancel a Discover it credit card application, call customer service at 1 (800) 347-2683 as soon as possible. If you applied online, you may have only a few minutes to cancel the application before it processes. Once an application is processed, you will be unable to cancel. You'll also have a hard inquiry on your credit report and a slight dip in your credit score . If you mailed a paper application, you may have between 7 to 10 business days to contact customer service and cancel the application.
You can cancel a credit card application by contacting the credit card issuer’s customer service department. The sooner you contact them, the easier it will be to cancel the application. Applications usually are processed quickly once they’re submitted, especially if you’re an obvious candidate for either approval or rejection. Many credit cards will give you a near-instant decision in those cases. So if you applied online, you may have only a few minutes (or even less than a minute in some cases) to contact customer service. But you might have a window of about 7-10 business days in other cases, such as when you mail a paper credit card application. … read full answer
If you are unable to cancel a credit card application before it is processed, you will have to deal with the hard inquiry on your credit report. But depending on the issuer, it may still be possible for you to stop the account from being opened, so you don’t have to close it and damage your score further. There are a few more things you should know about the cancellation process, too.
Here’s how to cancel a credit card application:
Contact the credit card’s issuer as soon as possible. You need to stop the application from being processed to prevent a “hard inquiry” from being added to your credit report. That could temporarily hurt your credit score.
You may only have a few minutes (or even less) to cancel an online credit card application. If you mailed your application, you will have a wider window, thanks to the time it spends in transit.
If your application is approved before you can cancel it, you may still be able to avoid officially opening an account. But make sure to call customer service and ask because that's not always the case. With Chase and Discover, for example, the account is considered open once you’re approved. Quickly closing a newly opened account can hurt your credit score.
Consider waiting a few weeks or months before applying for another credit card. Multiple inquiries in a short period of time can make you seem risky in lenders’ eyes. If that’s not possible, try for a card with very high approval odds, such as a secured card or a card targeted to people who have lower credit scores than you do. You can also work on building credit without your own credit card, like becoming an authorized user on someone else’s card.
At the end of the day, it’s also worth mentioning that keeping a credit card you didn’t want could be good for your credit score. Even if you decide not to use the card, you’ll still have positive information reported to the bureaus each month. But if the card comes with an expensive annual fee, it’s better to close your account than lose money every year. Many issuers charge an annual fee when you open an account and then every 12 months on your account anniversary. Others won’t make you pay an annual fee if you cancel your account before the close of the billing cycle in which it’s charged.
When you cancel a credit card, your credit score could fall in the short term, depending on how old the account is and how much other credit you have. But canceling a credit card account might also benefit your credit score in the long run if you manage the rest of your finances better as a result of having one fewer account to worry about.… read full answer
Why canceling a credit card could hurt your credit score temporarily:
One way canceling a credit card account could hurt your credit score is if it reduces the amount of credit that you have available and thus increases your overall credit utilization. Keeping utilization low is key for a good credit score. So closing a high-limit credit card account will hurt your score more than closing a low-limit account, all else being equal.
Another way canceling a credit card account could hurt your credit score is if it brings down the average age of your accounts. That can make it seem like your credit history is shorter than it really is. Closing one of your oldest accounts will lead to more credit score damage than closing a newer one.
Plus, you’ll have one fewer account reporting positive information to the credit bureaus each month, assuming the credit card you cancel was in good standing.
Why canceling a credit card might still make sense:
Despite the potential for short-term credit score damage, canceling a credit card can still be the right decision. For example, if you’re paying an annual fee for a card you don’t use, and you’re not planning to apply for a mortgage or car loan in next few months, it’s probably better to close the account. Credit scores usually rebound within 3-6 months after canceling a credit card. And if you don’t plan to borrow during that time, you don’t have to worry about that drop.
But an unused credit card with no annual fee is another story. Even a credit card with zero balance still reports positive info to the credit bureaus on a monthly basis. That means it’s an asset to your credit score.
In any case, you should know all the facts before you cancel a credit card, so you can make an informed decision. We’ll summarize the key considerations below.
Here’s what happens to your credit score when you cancel a credit card:
Credit score drops: Your credit score often goes down because the average age of your open accounts decreases and your overall utilization increases (since you have less available credit).
Scores bounce back: Your credit score should rebound within 3-6 months of canceling your credit card account. Make sure to have at least one open credit card remaining and pay all your bills on time.
What happens if you don’t cancel: A credit card that is in good standing will continue to help your credit score. Even if you don’t make purchases with it, it will still report positive information to the credit bureaus each month. This is definitely worth considering if your card does not charge an annual fee.
Age matters: Closing newer accounts won’t have as much of an impact as closing older ones.
Limit matters: Closing low-limit accounts won’t do as much damage as closing high-limit ones.
When score drops matter: If you don’t need the best score possible for the 3-6 months it usually takes credit scores to bounce back after credit card cancelation, the temporary drop shouldn’t cost you anything.
Bottom Line: Avoid canceling your oldest card and your card with the highest credit limit. That will mitigate the amount of credit score damage. And if you have to close your oldest or highest-limit card, make sure you do it at a time when you don’t need your credit score to be at its best.
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