Reducing Credit Utilization and Inactive credit account

[SusanCCL]

I have been working very hard to reduce my credit balances, which I had allowed to get very out of control.   I'm making good progress and my fico score just went up to 704, which is a really good bump for me.   I still have a long way to go.   I recently saw some articles about what a closed account can do to one's score.  One person saw his score drop by over 20 points when a company closed his account due to inactivity.  I have one store account that I haven't used in quite a while-it's had a 0 balance for about a year.   If the company closes it due to inactivity, would that hurt  my score?   Would using it to make a purchase and then paying off the balance right away preserve the account and avoid the closure?  Would using a previously dormant account also hurt my score?  I cringe at the thought of using any credit account when I am so purposefully trying to avoid using credit and paying down those balances.  Any advice will be appreciated.

[buildafico]

It would hurt your score if it makes a major change in in your utilization ratio, and in the case of high balances yes it would likely drop your score. But the good news is buying a pack of gum will keep activity on the card. Although if you can and if there's something more expensive that you need that can be purchased there try to go with that just pay the balance in full of course

[SusanCCL]

Thanks for your reply.   It is my utilization ratio that's hurting me, other factors are really excellent.    That's why I'm so reluctant to use any credit now.   I think it could hurt me to have the account closed.   I think your advice about "a pack of gum" (any small purchase) and then paying off in full right away makes sense.  Thanks again!

[buildafico]

credit is a wonderful servant, but a terrible master