Repercussions of CC termination due to inactivity?

Anonymous · ‎03-18-2011

I just got a notice that Barclay's terminated my card based on the period of inactivity and due to "information" obtained through Trans Union. Now, my score is BETTER than it I first got the card and my other CC rates have DROPPED. Clearly, they're annoyed because I applied for it to get 0% interest on an Apple laptop, paid it off well before the end of the 0% period and never used it again (it's been about 1.5 yearsw) No big deal because obviously, I haven't needed the card but what are the repercussions to my FICO score if a card is terminated by the lender with no derogatory history whatsoever?

MarineVietVet · ‎03-18-2011

@Anonymous wrote:
I just got a notice that Barclay's terminated my card based on the period of inactivity and due to "information" obtained through Trans Union. Now, my score is BETTER than it I first got the card and my other CC rates have DROPPED. Clearly, they're annoyed because I applied for it to get 0% interest on an Apple laptop, paid it off well before the end of the 0% period and never used it again (it's been about 1.5 yearsw) No big deal because obviously, I haven't needed the card but what are the repercussions to my FICO score if a card is terminated by the lender with no derogatory history whatsoever?

Welcome to myFICO.

The only thing that might affect your score is if you are carrying balances on any other cards because of the loss of the CL on this card. Losing this CL will lower your available credit and if you do have other balances that will raise your overall utilization. If you have no ther balances then nothing will happen to your score.

Here is an excellent thread about Closing Credit Cards.

Also it won't matter if the account is "closed by credit grantor" or similiar wording.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Anonymous · ‎03-18-2011

Thank you. Ironically, I had just gotten another lower rate CC the same day as I got the notice in the mail that I was suddenly "undesirable" to Barclay's so my total credit should still be the same (maybe even higher) and I don't have much debt. The utilization should still be lower because I happened to pay most of my cc balances off the day or two before I got the notice informing me of the account cancellation. Thanks again!