topic Re: Used CF card after 4 months of zero balance, FICO drops 8 points? in Understanding FICO® Scoring

Used CF card after 4 months of zero balance, FICO drops 8 points?

Anonymous — Sun, 07 Sep 2008 22:09:14 GMT

I used my Ikea card ($300 CL, $0 balance, 2 yrs + history, no lates) after not using it for about 4 months. I put $42 on the card, which translates to 14% util (this is my only CC). Suddenly, I get an alert that my EQ FICO dropped from 698 to 690. The Scorewatch alert came on 7/23/08 for the activity which posted on 7/1/08 (at least according to the Scorewatch alert).

How long does it take for this type of action to reverse itself and is there a standard length of time that's considered "inactive"? I can't see being tied to using this card all the time just for FICO's sake (a guy can only go through so many bags of tea candles, after all) and not using it all doesn't seem like it will help and closing it is NOT an option because of the history and the fact that it's my only revolving account.

Thanks for any advice.

(Edit: Just to decided to apply for a CL increase online to help with util. CL went from $300 to $400 immediately. Laughable, but it helps the util!)

Message Edited by jle4044 on 09-07-2008 03:09 PM

Re: Used CF card after 4 months of zero balance, FICO drops 8 points?

Anonymous — Sun, 07 Sep 2008 22:14:36 GMT

Get a bank card-

Paying the card back down will reverse the point drop-

Re: Used CF card after 4 months of zero balance, FICO drops 8 points?

Anonymous — Sun, 07 Sep 2008 23:16:04 GMT

Yep. I just pulled a new EQF and it rose back to 695, so that's 5 out of 8 lost points recovered. The partial recovery must have happened last week.

I agree with getting a bank card, but that's a whole other topic (CA's on my report killing my odds.)

Thanks

Message Edited by jle4044 on 09-07-2008 04:16 PM

Re: Used CF card after 4 months of zero balance, FICO drops 8 points?

haulingthescoreup — Sun, 07 Sep 2008 23:44:17 GMT

The ding from using an inactive account is a one-time deal and reverses the next month. It's a handy reminder to keep airing out your cards periodically.