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Do lines of credit get closed for inactivity?

Established Contributor

Do lines of credit get closed for inactivity?

I have an LOC from secumd CU that I opened in October but haven't touched. I was wondering if my issuer will close it due to inacitivty like they would do to an inactive cc. I'd rather close it before my issuer does so it looks better on my reports. I'm not willing to a pay a cent in interest to keep it alive.


Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-765,Eq08-749,Tu08-741
Goal Score: Ex08-760,Eq08-760,Tu08-760


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Message 1 of 7
6 REPLIES
Member

Re: Do lines of credit get closed for inactivity?

I had several credit cards with no activity and they closed them on me.

Message 2 of 7
Senior Contributor

Re: Do lines of credit get closed for inactivity?

I'd contact the CU directly and speak to someone about this.  I'm sure they'd be the best to answer your question as all lenders can handle these sort of things differently.

Message 3 of 7
Community Leader
Valued Contributor

Re: Do lines of credit get closed for inactivity?

Closed by consumer or closed by creditor doesn't make a difference on your reports, assuming it's closed in good standing.
Message 4 of 7
Valued Member

Re: Do lines of credit get closed for inactivity?

I think the better question is will the closure of this LOC affect your utilization in a negative way? If not then I wouldn't care if it got closed or not. 

 

I'd expect most banks are very lenient about the usage of a LOC because it basically it mainly used for emergencies. If you wanted to keep it from getting closed which I know isn't your case just pull a few bucks from it and pay it back immediately. 

Message 5 of 7
Community Leader
Epic Contributor

Re: Do lines of credit get closed for inactivity?

Open accounts on revolving credit require the creditor to regularly monitor current balance in order to comply with the requirment of the Fair Credit Billing Act that billing be made if there is a balance, which must include certain notifications.  The FCRA also mandates prompt update of account information, such as balances, as neccsaary to maintain the current accuracy of the information (FCRA 623(a)(2)).

 

By closing a dormant account with no balance to further consumer use, they can cease the business need to continue to monitor, bill, and update credit reporting.

While who closed the account wont affect scoring, closed by credit grantor could be viewed and interpreted by others as having been done for some negative reason, and I would much prefer to have the account show as being closed by the consumer.

 

Message 6 of 7
Established Contributor

Re: Do lines of credit get closed for inactivity?

I received a response saying it won't be closed unless I call for a close.


Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-765,Eq08-749,Tu08-741
Goal Score: Ex08-760,Eq08-760,Tu08-760


Take the myFICO Fitness Challenge
Message 7 of 7