If I apply for a credit card, do I need to get it approved? Some of us may have asked this question. Today we have a comprehensive answer to this relevant question.
In some cases, you may apply for a credit card and get approved, but then change your mind. It’s also possible that you applied for a credit card by mistake and got approved. Therefore, many people have this question – if I apply for a credit card, do I have to approve it?
No, you don’t have to. If your financial goals have changed or you’re not sure if your card will be accepted, don’t worry too much. You are under no obligation to accept a card that doesn’t suit your needs.
This means you can cancel your credit card even if it’s pending approval or has already been approved. However, canceling a newly approved credit card comes with some risks that you should consider first.
This article will cover it all and explain it in detail. We’ll also take a look at how to cancel an approved credit card and how to avoid dire consequences.
How to cancel a credit card application
If you have applied for a credit card but want to reconsider before being approved, you can cancel your application by contacting your card issuer directly. Many credit card companies have a phone number on the application page or provide contact information in the confirmation email after you apply.
When you call, mention that you would like to cancel a credit card application that you recently submitted. They should be able to verify your identity and easily cancel your application as long as it is pending approval. This will authorize your card and prevent it from being sent.
Canceling at this stage will not affect your credit score. Your credit card company may not yet be checking your credit report closely or reporting your new account. Therefore, canceling now will not cancel your credit history.
Risks of canceling an approved credit card
If your credit card has already been approved, canceling it may come with some risks. It’s still possible, but most of the time you have to bear some consequences. Let’s look at two scenarios for how cancellations can affect your credit history.
When you have a great credit history
If you already have a very good credit score of 740 or higher, canceling your new credit card immediately after approval will likely have little effect on your credit. The hard checks from the application will remain on his report for two years, but the impact on a high credit score will be minimal unless the account has been opened for too long.
Typically, canceling a card you were just approved for will affect the “New Credit” section of your FICO credit score. This accounts for about 10% of your credit score. In most cases, cancellations will not affect the entire 10%.
here’s a hint: Don’t reapply for another card immediately after canceling because your credit score is high. Wait at least a month to see how it affects your score. As long as there are no major changes, feel free to apply for a card that suits your needs.
See related items: Can I pay my mortgage with a credit card?
If you have an average credit history
If your credit score is in the average range (620-739), canceling your new account may have more negative consequences. Some of the potential drawbacks are listed below.
- Any hard work from your application will remain on your report for two years, during which time your score may drop slightly.
- Canceled accounts do not receive negative points but can remain on your report for up to 7 years. Still, this can cause the history to appear unstable.
- If managed responsibly, the positive impact an account may have over time will be lost.
- Losing your available credit limit on this account may increase your credit utilization rate.
- The length of your credit history won’t improve as quickly as it would if you kept a new account open.
So if you have an average credit score, it’s usually best to keep your new credit card open for at least 12 months to avoid these negative effects.
How to cancel an already approved credit card
If you decide it’s best to cancel your newly approved credit card account, follow these steps.
1. Check your card application status
Please check your application status online or call the issuer to ensure your account is officially approved and not yet on hold. If you haven’t been approved yet, it’s easier to cancel. All you have to do is call or email the publisher. However, if your card has already been approved, canceling it requires more steps.
Please note that with current technology, card applications can be completed very quickly. Your card may be approved within minutes.
2. Contact the publisher
You may cancel by phone or in writing. Please check your credit card agreement for cancellation policies and follow the instructions therein. Many issuers have a dedicated credit card services phone number from which you can request to close your account.
When contacting the publisher, please have all necessary details available. For example, have your card application number and name ready.
3. Request for confirmation
Simply requesting a cancellation is not enough. After cancelling, please be sure to receive confirmation via email or letter. This documentation is very important if your credit report later shows that your card is still valid.
4. Monitor your credit report
After canceling, keep an eye on your credit report to ensure your account is properly marked as closed and inactive. Closed accounts will remain for up to 10 years, but will show a $0 balance and no late payments.
Contact your card issuer to dispute the error immediately. You can also get a free copy of your credit report every four months from one of the three major credit bureaus: Equifax, TransUnion, and Experian.
5. Shred the canceled card
Once the cancellation procedure is complete, the card will be destroyed. All application documents can be shredded for safe disposal. However, please keep the cancellation confirmation document in a safe place. You may need it later.
See related items: How can I pay off my credit card debt?
How to decide whether to accept credit cards
How do you decide whether to accept or decline an approved credit card? Well, canceling a new credit card is risky, so you should decide carefully whether to accept your account or not. The publisher will not ask if you accept it, but you have the option to decide for yourself.
Factors to consider are:
Assess your financial situation
Based on your current income, expenses, and existing debt, determine whether taking on a new loan facility is financially responsible at this time. Do you really need a credit card?
Don’t take on more credit than you can comfortably manage. This will only ruin your financial future.
View details
Carefully review the details of your credit card contract before accepting a card. This will help you understand and meet all requirements, including minimum spending on bonuses.
Please note that each issuing company has different terms and conditions. These include the annual percentage rate, penalties, benefits such as cash back, and annual fees. Get all these facts now.
Evaluation of benefits
Compare rewards programs, promotional offers, rates and fees to suit your needs. Make sure your card offers good value.
Also, make sure the benefits match your spending habits. For example, if you don’t like to travel, don’t choose a card that offers attractive travel benefits. If you love shopping, look for a card that offers shopping perks and perks.
Explore other offers
See if another credit card is a better fit for your spending habits and financial situation. By comparing different card issuers, you can be sure to get the best deal on the market. You don’t want to end up getting a card that gives you 2% cash back when you can get a card that gives you 3% cash back on purchases.
Find your card issuer
Check the reputation and customer service ratings of the bank or financial institution offering your card. Make sure this is a provider you want to have a relationship with.
Reputable card providers usually guarantee a better experience. Having them as your financial partner is beneficial to you.
By taking the time to carefully consider these aspects, you can avoid “buyer’s remorse” and the hassle of canceling a newly approved credit card. Avoid applying for cards you want to be sure to keep.
How long does it take for my credit card to be approved?
The time it takes for your credit card application to be approved varies. With advances in technology, it can take just a few minutes. Below are some timelines.
- Instant approval: Some credit card applications allow instant decision. If you have a good credit score, you may be approved quickly.
- 1-5 days: Most credit card approvals take 1-5 business days. The bank will review your credit report and verify the information before approving it.
- 5-10 days: More complex applications, such as for secured card and fair credit applicants, may take up to 5-10 business days.
- More than 2 weeks: If additional identity verification is required, approval can take up to 2 weeks or more. Pre-approval may take additional time.
Your bank will notify you by email or post if approved and provide you with your new account details. If you do not receive a response within two weeks, please contact the publisher.
Tips for getting approved for a credit card
Want to increase your chances of applying for a credit card? Here are some great tips.
- Keep your credit score above 670. The higher the score, the better.
- Keep credit card balances low. Effective if usage is less than 30%.
- Avoid applying for multiple cards at once. Free up space for your application.
- Provide accurate information about your application.
- Have a stable and verifiable income.
- Select your first card from your current bank.
Following responsible credit card practices will help you get approved. If you apply strategically, you’ll be less likely to end up with a card you want to cancel.
Bottom line: If I apply for a credit card, should I get it approved?
The simple answer is no. You don’t have to accept the card just because it’s approved. However, before you make the decision to cancel an approved card, evaluate for yourself how it will affect your future credit history.
If it significantly affects your credit history, you may decide to keep the account for a while and then close it after about a year. This means that cancellations will no longer be made to new accounts.
On the other hand, if you have a perfect credit score, canceling a new card won’t have a big impact on your card. So you can go ahead and cancel it.