topic Re: Credit Card closed for inactivity question in Credit Cards

Credit Card closed for inactivity question

dodfire — Sun, 23 Jun 2013 16:54:52 GMT

Quick question for my friends here....

If I allow one of my cards to be closed for inactivity, will this have any negative impact on my score due to the comment listed on my CR?

Should I just close the card myself??

Re: Credit Card closed for inactivity question

Creditaddict — Sun, 23 Jun 2013 17:21:46 GMT

@dodfire wrote:
Quick question for my friends here....

If I allow one of my cards to be closed for inactivity, will this have any negative impact on my score due to the comment listed on my CR?
OR
Should I just close the card myself??

no negative either way.

Re: Credit Card closed for inactivity question

Anonymous — Sun, 23 Jun 2013 17:22:34 GMT

Score wise, it doesn't matter, whether closed by customer or issuer is the same for FICO scoring. On manual review, it may raise a question as to why the issuer closed it.

So if you really don't care about the card, it might be very slightly better to close it first yourself.

Re: Credit Card closed for inactivity question

Creditaddict — Sun, 23 Jun 2013 17:31:56 GMT

@Anonymous wrote:
Score wise, it doesn't matter, whether closed by customer or issuer is the same for FICO scoring. On manual review, it may raise a question as to why the issuer closed it.
So if you really don't care about the card, it might be very slightly better to close it first yourself.

This manual review stuff is overrated... why would they be looking through pages and pages of a credit report and say "why would your account show (closed for inactivity(?" and that be an issue??

Re: Credit Card closed for inactivity question

dodfire — Sun, 23 Jun 2013 17:50:40 GMT

Thanks for the replies!!

The card in question is my Military Star Card, easy enough to explain if I allow it to close on its own.

I was just worried that it might be scored different and did not want a negative ding to be on my report for something I could avoid.

Re: Credit Card closed for inactivity question

myjourney — Sun, 23 Jun 2013 17:52:03 GMT

@dodfire wrote:
Quick question for my friends here....

If I allow one of my cards to be closed for inactivity, will this have any negative impact on my score due to the comment listed on my CR?
OR
Should I just close the card myself??

IMHO it has no effect due to showing as a positive TL

As long as it states on CR as "paid as agreed>>>in good standing>>>never late>>>etc etc

Your good to go

Re: Credit Card closed for inactivity question

dodfire — Sun, 23 Jun 2013 18:22:25 GMT

Great...thanks everyone!!

Re: Credit Card closed for inactivity question

navigatethis12 — Sun, 23 Jun 2013 18:28:36 GMT

@Creditaddict wrote:

This manual review stuff is overrated... why would they be looking through pages and pages of a credit report and say "why would your account show (closed for inactivity(?" and that be an issue??

While I agree, I did get asked about a closed account. It was an FIA card that Sovereign Bank took over, so now shows closed and transferred to another lender. A Chase analyst asked me about why it was transferred and I told him, but I am not sure why he asked because it had prefect payment history. It may be because Sovereign hasn't reported a new account yet, but it wasn't a big deal.

I do agree that it's not like they will see that and decide to not grant anything. If all of the cards showed closed, then maybe it would be different, but if it's just one card closed for inactivity, they most likely won't ask any questions.

Re: Credit Card closed for inactivity question

Open123 — Sun, 23 Jun 2013 18:44:11 GMT

@Creditaddict wrote:
This manual review stuff is overrated... why would they be looking through pages and pages of a credit report and say "why would your account show (closed for inactivity(?" and that be an issue??

It one were going to do so anyway, isn't it more prudent just to close it to eliminate the possibility?

Re: Credit Card closed for inactivity question

dodfire — Sun, 23 Jun 2013 21:18:08 GMT

@Open123 wrote:
@Creditaddict wrote:
This manual review stuff is overrated... why would they be looking through pages and pages of a credit report and say "why would your account show (closed for inactivity(?" and that be an issue??
It one were going to do so anyway, isn't it more prudent just to close it to eliminate the possibility?

Because I would like for it to report as open for as long as possible. I know that time is running out on this card, but I do not want to purchase something just to keep it open.