Let the Closing and FICO score drops begin

[m_jonis]

Wow, 3 accounts closed this month alone due to "inactivity".

Guess I better start using those cards.

But then if you use a card that hasn't been used in 3 months, FICO dings you big time because a "previously inactive account has activity"

So what's better?

Drop due to using the cards, or having your overall limits drop by about $25,000?

[haulingthescoreup]

Use them every two months, so that they're active, and you don't get the dormant account ding.

Seriously, though, sorry to hear this.

[Chopbrocoli]

No dings whatsoever. Most creditors close acconts due to usually 12 months inactivity. Just buy a piece of gum once a 3 months and you will be good.

[MidnightVoice]

I put a monthly payment on every credit card - phone, utilities, charity etc.

[Anonymous]

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@m_jonis wrote:

Wow, 3 accounts closed this month alone due to "inactivity".

Guess I better start using those cards.

But then if you use a card that hasn't been used in 3 months, FICO dings you big time because a "previously inactive account has activity"

So what's better?

Drop due to using the cards, or having your overall limits drop by about $25,000?

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I don't know about the actual points of my score, but I know that when I started using cards that hadn't been used in over a year, I got a positive in "what's helping your score" for having recent use of credit cards.  

[m_jonis]

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@haulingthescoreup wrote:
Use them every two months, so that they're active, and you don't get the dormant account ding.

Seriously, though, sorry to hear this.

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The only bad thing about that, is that FICO will then decrease your score becuase 100% of your revolving accounts carry balances.

My score was 779 and with the closings its down to 751 now.  Not sure how much of a hit I'll take by using "inactive" cards or having them ALL be active.

[m_jonis]

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@Chopbrocoli wrote:
No dings whatsoever. Most creditors close acconts due to usually 12 months inactivity. Just buy a piece of gum once a 3 months and you will be good.

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Do you subscribe to the fico score alerts?  Whenever I've gotten one for "previously inactive card shows activity" its been between a 10-20 point score drop.  Inactive seems to be over 2 months (for FICO scoring purposes).  For the credit cards, it's anywhere from 6-24 months (WAMU just closed my card because they said I hadn't had any activity for 6 months).

[haulingthescoreup]

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m_jonis wrote:

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@haulingthescoreup wrote:
Use them every two months, so that they're active, and you don't get the dormant account ding.

Seriously, though, sorry to hear this.

---

The only bad thing about that, is that FICO will then decrease your score becuase 100% of your revolving accounts carry balances.

My score was 779 and with the closings its down to 751 now.  Not sure how much of a hit I'll take by using "inactive" cards or having them ALL be active.

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Oh, my goodness, no, pay your balances before they report! Don't ever let more than a couple of cards report!

Two different things going on here:

--has the card been used recently?
--has the card reported a balance?

Nearly every card I have (I have 11) has some sort of monthly activity, as MV mentioned. My proudest is a $5.50 recurring charge on my most despised problem card. But for almost every month, only one reports a balance, because I pay them off online 3-4 days before they're due to update.

It's all about being aware of each account's billing and statements cycle, and working it to your advantage.

[Anonymous]

Do you put charitable contribtions on credit cards?

[TangMeister]

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@haulingthescoreup wrote:

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@m_jonis wrote:

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@haulingthescoreup wrote:
Use them every two months, so that they're active, and you don't get the dormant account ding.

Seriously, though, sorry to hear this.

---

The only bad thing about that, is that FICO will then decrease your score becuase 100% of your revolving accounts carry balances.

My score was 779 and with the closings its down to 751 now.  Not sure how much of a hit I'll take by using "inactive" cards or having them ALL be active.

---

Oh, my goodness, no, pay your balances before they report! Don't ever let more than a couple of cards report!

Two different things going on here:

--has the card been used recently?
--has the card reported a balance?

Nearly every card I have (I have 11) has some sort of monthly activity, as MV mentioned. My proudest is a $5.50 recurring charge on my most despised problem card. But for almost every month, only one reports a balance, because I pay them off online 3-4 days before they're due to update.

It's all about being aware of each account's billing and statements cycle, and working it to your advantage.

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+1