Credit Card Center Advertiser Disclosure

Reply
Established Contributor
Posts: 667
Registered: ‎11-24-2016
0 Kudos

Secu policy too good to be true?

I have asked secumd on their policy for non-activity closure on both their LOC and their credit card.

Capture2ndtry.PNG

Capturenonuse.PNG 

If such a thing were true, it would be extremely convenient because I would never have to spend on either loan products and have major age related fico boosts. Both loans were opened on month 0 of my credit journey. However a couple months ago, a bankteller told me secu cards close out for inactivity at 2 years while LOC never closes out. Anyways such a policy of never closing sounds too good to be true, can anyone else elaborate on whether this is too good to be true?


Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-719,Eq08-722,Tu08-717
Goal Score: Ex08-760,Eq08-760,Tu08-760


Take the myFICO Fitness Challenge
Highlighted
Community Leader
Senior Contributor
Posts: 4,493
Registered: ‎07-17-2014

Re: Secu policy too good to be true?

Hello SubEx!  My comments below in blue.

 


Subexistence wrote:

I have asked secumd on their policy for non-activity closure on both their LOC and their credit card.

Capture2ndtry.PNG

Capturenonuse.PNG 

 

If such a thing were true, it would be extremely convenient because I would never have to spend on either loan products and have major age related fico boosts. Both loans were opened on month 0 of my credit journey.

 

You describe these accounts initially as an LOC and a credit card.  These are revolving accounts, not loans.  I am not trying to be picky about words -- it's just that the scoring advantage of having open loans that would never close (and which you could alter the balance at will) would be much greater than having open revolving accounts.  Revolving accounts that can be kept open indefinitely with almost no work are fairly commonplace.

 

However a couple months ago, a bankteller told me secu cards close out for inactivity at 2 years while LOC never closes out. Anyways such a policy of never closing sounds too good to be true, can anyone else elaborate on whether this is too good to be true?

 

I think the initial rep was likely to be right.  That bank probably never closes LOCs and they probably close credit cards after a long period of non-use.  Such a policy would be typical for most banks, and I have never heard of a single bank (or CU or CC issuer) in the world who has an explicit policy of promising never to close a credit card even after ten years of non-use. 

 

But let's just suppose that they do.  (Conceivable, since you have something in writing from them, but still in my opinion likely to be a mistake by the rep who wrote that.)  Even in this best case scenario, all you can conclude is that in August 2017 they had such a policy.  You cannot conclude that the policy wouldn't change two months from now.  This is a crucial idea when making plans about credit: identifying what is stable and what could change in a heartbeat.  (Actually a likely crucial skill in life in general.) 

 


 

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.