topic Inactive credit card in Credit Cards

Inactive credit card

GTT — Fri, 15 Nov 2013 21:02:06 GMT

I had my first credit card in Feb 2012, after using it for about 8 months, I stopped using it for almost one year.

I never missed any payment before.

So my question is, how does this 8-month inactive-period impact my credit score or my application to other cards?

Best Regards,

Gang

Re: Inactive credit card

Creditaddict — Fri, 15 Nov 2013 21:12:46 GMT

I would use it... depending what else you got going on in your credit portfolio you could see a jump from an account showing active again or you could see a dip from an account showing active again with higher utilization.

best to always just keep them active... 1 small use every 4-6 months on each card and then just PIF.

but what is the card? limit? - store cards might be a little different as to how important.

as far as applying for new credit this card shouldn't matter if your credit is good and you have something else active.

Re: Inactive credit card

GTT — Fri, 15 Nov 2013 21:16:56 GMT

That's the only card I have. The problem is I was out of the US for more than 1 year. That's why I didn't use it for a while.

Now I'm using it again carefully with low utilization.

So you would believe that period might have cause some damage to my credit history? ( Now in total I have about 2 years, but about half of the 2 years, there is no active credit card history ).?

Re: Inactive credit card

Creditaddict — Fri, 15 Nov 2013 21:24:47 GMT

@GTT wrote:
That's the only card I have. The problem is I was out of the US for more than 1 year. That's why I didn't use it for a while.
Now I'm using it again carefully with low utilization.

So you would believe that period might have cause some damage to my credit history? ( Now in total I have about 2 years, but about half of the 2 years, there is no active credit card history ).?

have you pulled a fico report from here... sign up for the Equifax score watch and cancel if you wish... but see what your report says your score is.... as long as you have a score and it's decent I would go ahead and apply for some things...

Who do you have on your wish list to apply for?

Re: Inactive credit card

GTT — Fri, 15 Nov 2013 21:26:33 GMT

I haven't checked my score yet.

I indeed want either Chase Freedom or AMEX. I don't need great cards but just need something with a higher CL. The only I have with C1 has only 500 CL.

Re: Inactive credit card

Creditaddict — Fri, 15 Nov 2013 21:28:24 GMT

@GTT wrote:
I haven't checked my score yet.
I indeed want either Chase Freedom or AMEX. I don't need great cards but just need something with a higher CL. The only I have with C1 has only 500 CL.

okay great... go to chase.com and check pre-qual and see if you get an offer for a card now.

Re: Inactive credit card

GTT — Fri, 15 Nov 2013 21:30:32 GMT

I indeed checked on Chase.com and I am 'pre-qualified' for Chase Freedom.

But I shouldn't take it seriously, right?

Re: Inactive credit card

Creditaddict — Fri, 15 Nov 2013 21:31:32 GMT

@GTT wrote:
I indeed checked on Chase.com and I am 'pre-qualified' for Chase Freedom.
But I shouldn't take it seriously, right?

No, you should... Those offers are as good as gold in my book!

Re: Inactive credit card

GTT — Fri, 15 Nov 2013 21:32:59 GMT

Oh! That's good to know!

All I was told before was never to believe the 'pre-approved' or 'pre-qualified' thing.

I also got a mail from Discovery saying I'm 'pre-qualified' for its card.

Re: Inactive credit card

GTT — Fri, 15 Nov 2013 21:38:16 GMT

btw, the TransUnion score on creditkarma is not FICO score even it's from TransUnion, am I right?

Re: Inactive credit card

Revelate — Fri, 15 Nov 2013 21:52:16 GMT

@GTT wrote:
That's the only card I have. The problem is I was out of the US for more than 1 year. That's why I didn't use it for a while.
Now I'm using it again carefully with low utilization.

So you would believe that period might have cause some damage to my credit history? ( Now in total I have about 2 years, but about half of the 2 years, there is no active credit card history ).?

Nah. The problem with not using a card is the lender (or maybe the bureau, not sure on that one personally) can flag the tradeline as inactive, and then it gets discounted from a scoring perspective. Alternatively they can just close the card.

If you have been using the card, it is obviously still open and reporting will continue as normal even if the tradeline was flagged as inactive at some point in the past. That's not something that carries with you, you'll have 2 years or whatever of pretty OK's assuming no delinquincies. Lenders in underwriting may see there was no activity on it for a while and ask ("I was out of the country" is just fine for a recon answer) but FICO doesn't care.

Re: Inactive credit card

Revelate — Fri, 15 Nov 2013 21:52:49 GMT

@GTT wrote:
btw, the TransUnion score on creditkarma is not FICO score even it's from TransUnion, am I right?

Correct.

Re: Inactive credit card

TiggerDat — Fri, 15 Nov 2013 21:53:39 GMT

That is true, but mine seems to match my FICO pretty much. I get my FICO from Barclays and Walmart.

Re: Inactive credit card

Creditaddict — Fri, 15 Nov 2013 22:09:00 GMT

I would apply for all 3 today then... Chase First, Discover second, then Amex if that's what you want!

Re: Inactive credit card

alvon123 — Fri, 15 Nov 2013 23:56:12 GMT

@GTT wrote:
btw, the TransUnion score on creditkarma is not FICO score even it's from TransUnion, am I right?

It is a FAKO score.