Signing for a credit card for a promo?

[samm07]

I have an offer if I apply for a credit card and get approved I can get a free $100 gift card for a few places... I'm quite tempted. But would be cancelling the card as soon as I had the gift card in hand. Has anyone done this and then been peanalized? It seems "to good to be true?"


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[immac2947]

You probably will have to use it before getting the card

[Arvilish]

Are you talking about ratesupermarket? I did and got $100 SB gift card [for PC] and did not even bother activating it. I gave my GC away to bro as a gift and he has even used half of it so it does not matter, at least not in my case.

It may 'ditch' your credit points but I don't care; not that I got life or anything so screw it.

[olivercat]

You may also want to be aware that when you get a credit card, even if you do not use it often (or at all), it can be considered a 'debt' when trying to get a mortgage or a loan. I had this pointed out to me many years ago when I was applying for a mortgage. The bank had 2 credit cards listed (with credit limited totally $35,000). Both cards had been cancelled and I did not owe anything, but the credit bureau had not removed them from my credit listing. So, the bank considers your credit card limit a debt, because you can use the credit at any time. Annoying little things I learned about credit and banks.
And, yes, I got (and already paid off) my mortgage. I also learned how to contact a credit bureau to have corrections made to make sure my credit is in good standing.

[samm07]

All good info. We only have two credit cards between us both that we don't carry a balance on. Credit ratings are crock anyway. You get better ratings for carrying a balance and paying your minimums on time versus paying it off while you use it. Figure that out lol. I probably won't do it. As it could be a hassle cancelling it.


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[jasperandchar]

When applying for a credit card, they do a hard pull on your credit report and you lose points, so the choice is yours.

Good luck with your decision

[amira84]

Does someone know how many points we loose when we apply for a new credit card?

[samm07]

Does someone know how many points we loose when we apply for a new credit card?

I looked it up and it's like 3-6 so extremely minimal.

[Purdee]

how do you find out your credit score? for free of course

[jerryhung]

how do you find out your credit score? for free of course

Sign up for Equifax.ca 30-day trial. That doesn't pull TransUnion score though

Anyway, credit card applying for bonus or churning is an art
See my big thread on R F D ...... whole point is to sign up CC for the welcome bonus, and cancel before renewal

Jerry's List of Credit Cards with $200+ Welcome bonus/Aeroplan/AMEX MR & Churning FAQ
insert-you-know-what/jerrys-list-credit-cards-200-welcome-bonus-aeroplan-amex-mr-churning-faq-1685293/

As for RSM $100 GC, it's usually on approval, no use needed. I just did one for MBNA 0% Platinum MC

[mulock]

You may also want to be aware that when you get a credit card, even if you do not use it often (or at all), it can be considered a 'debt' when trying to get a mortgage or a loan. I had this pointed out to me many years ago when I was applying for a mortgage. The bank had 2 credit cards listed (with credit limited totally $35,000). Both cards had been cancelled and I did not owe anything, but the credit bureau had not removed them from my credit listing. So, the bank considers your credit card limit a debt, because you can use the credit at any time. Annoying little things I learned about credit and banks.
And, yes, I got (and already paid off) my mortgage. I also learned how to contact a credit bureau to have corrections made to make sure my credit is in good standing.

That's one reason why I call my credit card issuer every time they automatically increase my limit requesting it be dropped down to the lowest possible level. I keep my limits at $3500 simply because I use my credit card as a debit card and never carry a balance. I have no need for a $10k, $20k, or $30k limit even though I qualify.

[samm07]

That's one reason why I call my credit card issuer every time they automatically increase my limit requesting it be dropped down to the lowest possible level. I keep my limits at $3500 simply because I use my credit card as a debit card and never carry a balance. I have no need for a $10k, $20k, or $30k limit even though I qualify.

Ugh puts keeps doing that. Every single time j go to the bank they tell me I can qualify for a larger limit! Every time I tell them no. Ugh

[tjthemanto]

I have an offer if I apply for a credit card and get approved I can get a free $100 gift card for a few places... I'm quite tempted. But would be cancelling the card as soon as I had the gift card in hand. Has anyone done this and then been peanalized? It seems "to good to be true?"


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Keep it for at least 1 month if you can , i.e 1 Billing cycle and then cancel it, if you want. You need not even spend much on it, like 10-15 bucks.

You never know, if they will claw back the $ 100 GC or not, if you never activate it or cancel it immediately. I would wait for 1 cycle.

Opening it does require a credit inquiry on your file, and might drop your credit score a bit. But if you don't care much about the score, go ahead and open one and get the GC.

[tjthemanto]

All good info. We only have two credit cards between us both that we don't carry a balance on. Credit ratings are crock anyway. You get better ratings for carrying a balance and paying your minimums on time versus paying it off while you use it. Figure that out lol. I probably won't do it. As it could be a hassle cancelling it.


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No hassle cancelling it. They don't care. A couple of times they will ask you , Why and that's pretty much it. But make sure you get a final bill or confirmation letter in your mail, that it was cancelled and keep it for record.

[tjthemanto]

Does someone know how many points we loose when we apply for a new credit card?

Not much, unless you have lot of Credit Cards and debt. Usually after 6 months - 1 year it repairs itself. So if you are not applying for loans, mortgages, car financing, Line of Credit etc , any time soon, go ahead and apply for one, even if its just for the Gift Card.

You can cancel it later or reduce the Credit limit on it a lot, so that your score is not affected much.

NEVER cancel your OLD CC , as the AGE of the credit card is also important for your score. Cancelling a new card will affect you score much less than a 10 + year card.