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Frequent Contributor
sakhalin070
Posts: 292
Registered: ‎08-28-2012

Not renewing a card?

[ Edited ]

What happens when a credit card (in good standing with $0 reporting) expires and the holder doesn't ever renew/activate the new card? 

 

 

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FICO: TU 781 EX 776 Last App: November 2012
Valued Contributor
maiden_girl
Posts: 2,005
Registered: ‎12-29-2011

Re: Not renewing a card?

[ Edited ]

What do you mean by not renewing a credit card? Generally your CCC will send you a new card prior to your expiration date if you still have an active credit line with them.

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Frequent Contributor
sakhalin070
Posts: 292
Registered: ‎08-28-2012

Re: Not renewing a card?

I guess I mean activating.  When they send you the card you will need to call the sticker to activate it. 

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FICO: TU 781 EX 776 Last App: November 2012
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: Not renewing a card?

It remains open unless/until the issuer shuts it down for inactivity.  Every lender has different criteria for how long they will let an account sit unused before they close it down.


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Frequent Contributor
sakhalin070
Posts: 292
Registered: ‎08-28-2012

Re: Not renewing a card?


Walt_K wrote:

It remains open unless/until the issuer shuts it down for inactivity.  Every lender has different criteria for how long they will let an account sit unused before they close it down.


Will having a credit card shut down for inactivity impact a credit score negatively?  Other than the UTIL rate

AMEX BCE, Discover IT, Citi Forward, BoA Travel Rewards

FICO: TU 781 EX 776 Last App: November 2012
Valued Contributor
Burned2manybridgesB4
Posts: 1,407
Registered: ‎03-15-2012

Re: Not renewing a card?

[ Edited ]

No! It's a good reporting mark that stays for ten years, on your CR's.

If you want to keep them alive, buy a pack of gum every other month.

If you're trying to get away from AF's, then ride the year, and move up.


Established Contributor
ccnewcc
Posts: 560
Registered: ‎09-29-2012

Re: Not renewing a card?


sakhalin070 wrote:

Walt_K wrote:

It remains open unless/until the issuer shuts it down for inactivity.  Every lender has different criteria for how long they will let an account sit unused before they close it down.


Will having a credit card shut down for inactivity impact a credit score negatively?  Other than the UTIL rate


idk, but won't it say something like "Closed by Credit Granntor"?

Valued Contributor
nicholasyud
Posts: 1,734
Registered: ‎08-13-2012

Re: Not renewing a card?

Call the bank and tell them you doesnt want it ..........check your credit report and make sure they dont report it...

i mean i got my wells fargo and turn out didnt want it then after a few months they closed them out and i had to go a long process for Disputed and stuff for a few months but they did deleted it thou......


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Revelate
Posts: 8,398
Registered: ‎12-30-2011

Re: Not renewing a card?

If you want the tradeline I would suggest using it sporadically. If you don't, close it.

FICO won't care but there's no good reason to have UW see: "closed by credit grantor" in my opinion. May not matter; however, it might. My thoughts anyway, not confirmed by any evidence.
Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
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Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: Not renewing a card?


ccnewcc wrote:

sakhalin070 wrote:

Walt_K wrote:

It remains open unless/until the issuer shuts it down for inactivity.  Every lender has different criteria for how long they will let an account sit unused before they close it down.


Will having a credit card shut down for inactivity impact a credit score negatively?  Other than the UTIL rate


idk, but won't it say something like "Closed by Credit Granntor"?


So many accounts were shut down by credit grantors during the credit crunch that I don't think much weight is given to this comment.  Especially if the account is clean.  If there's a string of major lates, that's another story, but then again, it's the lates you're worrying about at that point, not the comment.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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