topic Re: Using Old Credit Cards Beware in General Credit Topics

Using Old Credit Cards Beware

Anonymous — Mon, 31 Oct 2011 16:30:51 GMT

I used my SAMS credit card for $100 this past weekend and i lost 4 points...This is why....

This alert was sent because there is new activity on an account that was inactive for more than months.

You received this alert because one of your credit accounts is showing activity after having been inactive for some time. The effect this has on your FICO® score is hard to predict; it may cause your score to go up or go down.

This kind of alert often happens at the same time as other alerts on the same account. The other alert, perhaps a balance increase alert or an account change alert, likely has a greater effect on your FICO® score. However, it is possible for new activity on an inactive account, by itself, to affect your FICO® score.

Your FICO® score may go up if most of the accounts listed in your credit report have been inactive recently and then new activity is reported on one of the accounts. Consumers who have recently used credit responsibly often have higher FICO® scores than consumers who have not used credit at all recently. Therefore, showing new account activity on your credit report that previously had little recent activity can help your FICO® score.

Your FICO® score may go down if the new activity is reported on an account that was already in bad status. Accounts in bad status include those that are currently past due, have a history of missed payments, or are charged-off or sold to a collection agency.

Re: Using Old Credit Cards Beware

llecs — Mon, 31 Oct 2011 17:09:18 GMT

After a period of time of inactivity (e.g. the CC doesn't update to the CRs), FICO is said to ignore the balance and CL. Therefore, once you use it and a balance reports, or it starts reporting, you could see a change in score as util changes. Also, the new CC activity may not be the direct cause of the point change. Other items could have changed on your report, combined with that CC, to impact the 4 points. For example, I once got an alert that I gained 20 points due to an inquiry. The inquiry didn't increase my score but it was other changes to my CR that resulted in the 20.

Re: Using Old Credit Cards Beware

AndySoCal — Tue, 01 Nov 2011 01:51:11 GMT

The alert you received is score watch alert that is controlled by your user settings. The four point change may or may not be related to the Sams purchase. Secondly is the purchase SAMS showing on your credit report? If not something else has changed that has been reported to the bureaus.

Re: Using Old Credit Cards Beware

Anonymous — Tue, 01 Nov 2011 13:20:21 GMT

Yes, the balance on my Sams card went up, thats why the change occures. Nothing else in my report changed. This happens alot on my reports, both of them. Whenever the balances go up or down the scores change as well.