Can You Cancel a Credit Card Application?

It is possible to cancel a credit card application, though the specific steps and implications depend on how far along the process has progressed. The timing of your cancellation directly influences the outcome and any potential effects on your financial standing.

Canceling a Pending Application

If you decide to cancel a credit card application before the issuer has made a final decision, the process is typically straightforward. You can usually initiate the cancellation by directly contacting the credit card issuer’s customer service department via phone. Many issuers also provide an online application status portal where you might find an option to withdraw your application.

Once you request to cancel a pending application, it will be withdrawn and will not be processed further. This means no new account will be opened in your name. While the application itself is halted, a significant consequence remains on your credit report. The “hard inquiry,” or “hard pull,” that occurred when you initially submitted the application will not be removed, even with a successful cancellation. This inquiry is recorded on your credit report immediately upon submission.

Canceling After Approval but Before Activation

If your credit card application has been approved, and the card has been issued or mailed but not yet activated or used, you are closing a newly opened credit account. It is advisable to contact the issuer’s customer service as soon as possible after receiving approval or the physical card to express your intent to close the account. The hard inquiry associated with the initial application will remain on your credit report.

Opening and then quickly closing a new credit account can have a minor, often temporary, impact on your credit score. A new account can initially cause a small dip in your score due to the average age of accounts decreasing and the hard inquiry. While closing the account quickly prevents the development of a long credit history with that specific card, the overall effect on your score from closing a very new, unused account is generally limited.

Understanding the Hard Inquiry

A hard inquiry is a formal request made by a lender or creditor to review your credit report. This occurs whenever you apply for new credit, such as a credit card, a loan, or a mortgage. Lenders conduct these inquiries to assess your creditworthiness and evaluate the risk associated with extending credit to you.

Each hard inquiry remains on your credit report for a period of up to two years from the date it was made. While they stay on your report for this duration, their impact on your credit score generally diminishes over time.

A single hard inquiry typically results in only a small, temporary dip in your credit score. Credit scores often recover from these minor dips within a few months, especially if no other negative credit events occur.