Question about credit scores and an unactivated CC account

[? (=Þ)]

So a few months ago, I helped a friend w/ frat fundraising by filling out an application for a CC from Chase. I was told I could apply, and simply not call and active the card when it showed up (and I cut it up after too).

Well, I looked up my credit history reports today and an account w/ Chase showed up. The upper credit limit is there at $1000, but my balance is zero (of course). Now I'm wondering.... is it worth my while to leave it there? or should I have it cancelled? Would it hurt my score to have a cancelled account? and conversely, would it help my credit rating by simply having it there (it shows "all payments made on time")?

a bit more info, I have 4 accounts total, 2 student loans, 1 primary Credit Card which I use actively and pay most off every month, and the Chase Credit Card. My score is in the low 700s currently, as reported by Experian/Equifax.

 

[chowderhead]

as a financial loan officer of which I am not 😀 I don't think it matters much that you have that card open. I think the FICO score is based on debt/credit ratio and the length of time of the credit. That card hasn't been on your record for very long so I doubt it matters much to your score. Plus, unless you plan on getting a loan, buying a car or house soon, your credit score is just something to track but of little immediate importance. I am a biased though as IMO, Chase has horrible service and tries to sell you everything under the sun with their telemarketers. I would close the account and stick with the CC that you currently have.

 

[Kelemvor]

Any credit cards on your record WILL hurt your rating whether you use them or not. Always close any credit cards that you will never use. When you close them, BE SURE to have them note that it was closed per YOUR request. Otherwise it can look like they closed it on you which is bad.

 

[rudder]

Other lenders will see that as available credit to you and the potential that you have to use it will affect your score. Close it if you don't intend to use it.

 

[Eli]

Originally posted by: FrankyJunior
Any credit cards on your record WILL hurt your rating whether you use them or not. Always close any credit cards that you will never use. When you close them, BE SURE to have them note that it was closed per YOUR request. Otherwise it can look like they closed it on you which is bad.

 

[optoman]

After you close it. it will be on your record for up to ten years. That's why it is so bad to have a lot of credit cards.

 

[catnap1972]

Originally posted by: optoman
After you close it. it will be on your record for up to ten years. That's why it is so bad to have a lot of credit cards.

Correct...the clock stops on that card when it's cancelled, but it still factors into the average age of accounts (while on the flip side, it won't help your utilization percentage any longer).

And loosely quoting the FICO notes, closing an account can NEVER help your score (unless you can get the reporting agencies to delete it from your reports entirely)