Does cancelling credit card I never activated affect my credit score?

Applied for Capitol One credit card. Upon receipt decided didn't want to pay annual fee and didn't activate card. When I called to cancel after much run around I was told that it will be reported to reporting agencies. Why? If I never activated or used the card how can they report it? Am worried it will further mar my credit score. Wanted to know what the purpose of their activation letter was if the account supposedly is already opened by my applying for it...had no answer. I was just repeatedly told it was a regulatory thing they had to do as far as reporting it. I accept the inquiry to my credit but now have cancellation to boot. Help!!!!

Stratham, NH -

Attorney Answers (3)

Andrew Daniel Myers

Andrew Daniel Myers

Bankruptcy Attorney - North Andover, MA
Answered

I largely agree with the previous answer.

Also, more important to your credit score the way it is calculated now is your debt-income ratio. So as long as your income stays the same or even goes up, and the less you use the credit cards including that one, the better your credit score.

By filling out and signing the loan application, you authorize the company to open an account. "Activation" is for the most part the step required to make sure that the card identified with your now open account got to you, and did not fall into the wrong hands during mailing or other shipping.

You did the right thing by reading the fine print. You'd be surprised how many people fall for the big print "ZERO INTEREST" or other large size promises, but then don't read the fine print about the fees, charges and the fact that the interest might default up to the 20% range if your payments are so much as a day late.

This answer is provided for informational purposes only. Actual legal advice can only be provided in an office consultation by an attorney licensed in your jurisdiction, with experience in the area of law in which your concern lies.

Robert W. Kovacs Jr.

Robert W. Kovacs Jr.

Bankruptcy Attorney - Worcester, MA
Answered

Activating the credit card is not what obligates you to the terms and condition of the card, but rather sending the application.
Since the time the account was open Capital One has been reporting your account in good standing with the credit reporting agencies.
This helps your credit score, because having an account with a large amount of available credit shows other creditors that you are trusted by someone else and that you have not over extended yourself.
When you close the account you will no longer be have that positive showing up on your credit report.
You may wish to leave the account open and not use in order to get the positive affect stated above. However, the affect of not having the account open or not will not make a huge difference in your score.

Good luck.


Robert Kovacs

Robert W. Kovacs Jr.

Robert W. Kovacs Jr.

Bankruptcy Attorney - Worcester, MA
Answered

Activating the credit card is not what obligates you to the terms and condition of the card, but rather sending the application.
Since the time the account was open Capital One has been reporting your account in good standing with the credit reporting agencies.
This helps your credit score, because having an account with a large amount of available credit shows other creditors that you are trusted by someone else and that you have not over extended yourself.
When you close the account you will no longer be have that positive showing up on your credit report.
You may wish to leave the account open and not use in order to get the positive affect stated above. However, the affect of not having the account open or not will not make a huge difference in your score.

Good luck.


Robert Kovacs

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