Question on utilization.

[FixMyCredit1992]

Here are my accounts and what the bal is.

Wells Fargo $300/$299.36

Fingerhut $180/$99.71

Victoria Secret $350/$150

Merrick $200/$0.

My main concern is that Fingerhut is over priced and Victoria Secret isn't needed for me. I simply added them to boost scores.

If I pay them off, and sock drawer them (which I can't really do with the FH one since there is no card), and utilize $100 of my CL of $500, will this hurt anything?

I guess my question is, do I need to keep utilizing these other accounts, or can sock drawering them hurt my score?

Also, my fingerhut reports as an "Installment Account", instead of a credit card, why is this?

[daybreakgonesXe]

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@FixMyCredit1992 wrote:

Here are my accounts and what the bal is.

Wells Fargo $300/$299.36

Fingerhut $180/$99.71

Victoria Secret $350/$150

Merrick $200/$0.

My main concern is that Fingerhut is over priced and Victoria Secret isn't needed for me. I simply added them to boost scores.

If I pay them off, and sock drawer them (which I can't really do with the FH one since there is no card), and utilize $100 of my CL of $500, will this hurt anything?

I guess my question is, do I need to keep utilizing these other accounts, or can sock drawering them hurt my score?

Also, my fingerhut reports as an "Installment Account", instead of a credit card, why is this?

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Well first off before anything else, make sure to pay that WF down before the statement cut; not sure what the interest is but you're very close to being over the limit and getting smacked with an OTL fee!!

And feel free to pay them and sock drawer them; not utilizing them for a short period of time won't hurt you! I also recommend, if possible, only report $76.5 or less over your credit cards, preferably on one card. It's a good habit to get into, considering you're trying to fix up your credit!

I believe the Fingerhut Fresh Start account is an installment tradeline, for whatever reason. In this case, it counts a little more towards DTI than a revolver or charge card would, and current/original balance ratio (XXX/180).

Just make sure to use the sock drawered accounts every few months or so to report activity! Otherwise they could close them out.

All the best!

[FixMyCredit1992]

Wait...they can close your account due to non-usage?

Also, since these accounts are close together time-wise, would closing them lower my score?

[daybreakgonesXe]

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@FixMyCredit1992 wrote:

Wait...they can close your account due to non-usage?

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Entirely possible! I'm not sure about the Fingerhut Fresh Start, but yes, card issuers can close accounts due to non-usage.

If something has an annual fee, you're safe from not using it pretty much ever as long as you pay the annual fee. Cards like Victoria's Secret they can close at a certain time period if it hasn't been used...Comenity cards tend to have a long shelf life, so you can go 1-3 years without an issue. Better err on the side of caution and say 1 year with VS.