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I just started a Bill Me Later account mostly just in attempts to build up my credit history and rating. Then I did some reading online and heard that it ONLY has the potential to hurt one’s credit rating. Still, I don’t know much about this credit stuff and I’m not sure about that. I don’t care if it only hurts my credit rating for 6 months as I don’t foresee needing good credit in the near future, but some people were saying that since it does submit and inquiry to your credit history, but then doesn’t show an account, it looks like a denial. Another comment in that article said that it basically give you exactly the amount of credit you use each time, making it appear that you are using 100% of your credit line, which is bad. Does anybody know if all this is true? Is there no way that Bill Me Later can improve my credit rating and history? If not, should I cancel it after a while? I’m afraid canceling it will just make it worse, since canceling a credit care is supposed to hurt your credit rating. Any tips would be appreciated. I’m a bit uninformed and confused by all of this.
So I just did some more reading and have concluded that it definitely cannot help my rating at all. Now I just would like to know if canceling it will hurt my rating. If so, how much? And if I do cancel it, is there a certain amount of time I should wait before I do?
Ok, more reading and I have concluded it can’t help me. Anybody know if canceling Bill Me Later will hurt my credit rating? If so, how much? And for how long? If I do cancel it, should I wait for some amount of time before doing so?

1 Thought on Should I cancel Bill Me Later?
  1. Reply
    July 28, 2011 at 4:47 am

    Your credit score has already taken a hit if the account was opened, but no more than it would be had you opened a credit card. Both require a “hard pull” which can temporarily lower your FICO for up to 5 points, but it’s not long lasting. Your score should recover in 6 months.
    Canceling a recently opened line of credit can hurt, but not as much as canceling an old open line of credit or one with a large credit limit. Depending on what else is in your credit report, canceling a recently opened account can artificially increase your credit ratio and that lowers your FICO.

    If you don’t want this account, cancel it, or leave it open, but don’t use it (or pay off what you have purchased with it). As I said before, most of the damage has already been done and there’s a chance that you may incur more damage by closing it. Your choice.

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