topic Re: Unused CC in Understanding FICO® Scoring

Unused CC

Anonymous — Sat, 08 May 2021 00:01:50 GMT

I have a revolving card that I have not been using in an effort to work my way to AZEO. Today I was notified by the store that if I don't use the card it will be closed. If that card is closed by the store, will it negatively impact my FICO scores. Also, I recentlty sold my house and next month that payoff of my mortgage should be reported. I have not purchased another home. Any impact there? Thanks in advance.

Re: Unused CC

SouthJamaica — Sat, 08 May 2021 02:55:58 GMT

@Anonymous wrote:
I have a revolving card that I have not been using in an effort to work my way to AZEO. Today I was notified by the store that if I don't use the card it will be closed. If that card is closed by the store, will it negatively impact my FICO scores. Also, I recentlty sold my house and next month that payoff of my mortgage should be reported. I have not purchased another home. Any impact there? Thanks in advance.

You can use the card. Just pay it off before the balance reports.

Re: Unused CC

designated_knitter — Sat, 08 May 2021 04:05:15 GMT

@Anonymous wrote:
I have a revolving card that I have not been using in an effort to work my way to AZEO. Today I was notified by the store that if I don't use the card it will be closed. If that card is closed by the store, will it negatively impact my FICO scores. Also, I recentlty sold my house and next month that payoff of my mortgage should be reported. I have not purchased another home. Any impact there? Thanks in advance.

The answer to both questions (like everything in life) is "it depends":

1. if the losing of the CL of the store card in question would cause your utilization to cross a boundary, then it could have an impact.

2. If the mortgage was your only installment loan (no car loan or unsecured loan) then you might take a hit for credit mix.

If neither of those situations is true, you should be ok.

Re: Unused CC

Anonymous — Sat, 08 May 2021 21:45:00 GMT

The mortgage was one of 3 installment loans. I dropped 11 points on two of the three which is a total bummer. Ugh.