Card Usage Question!

[Anonymous]

Hey everyone! I've got a quick question about card usage. From what I understand (thanks to stalking this board), it's best to virtually use ALL of your credit cards, but you do want to rotate them so you don't show all of your cards showing a balance, etc. So is it a bad thing if I have a credit card that I've had since October and literally haven't used it aside from paying the annual fee? Or that I have a couple of store cards that haven't seen any love from me quite yet? I do eventually plan on using them- because I wouldn't open a card that I wouldn't use, but is a time a factor right now? Will my credit score be affected for not using them for a couple more months or could my accounts be closed if I wait until summer hits?

I'm not too sure if it matters, but a card that I haven't even poked with a stick (strictly for padding) is Credit One Platinum Visa, and the store cards I plan on using in the summer time are Walmart, JC Penny, and American Eagle.

Thanks!

[Anonymous]

You can use each of your cards as much as you want. Just PIF before your statement cut date so they report 0. Or pay it before statement cut date to show the utilization you want it to show.

[Kevin86475391]

It's not your credit score that you have to worry about so much as individual lenders closing the account or lowering the limit if you don't use the card. Your credit score shouldn't be affected either way as long as you have at least one card reporting some usage. If you don't use a card and it gets closed or has a limit reduction that could worsen your over utilization in turn negatively affecting your credit score, but that's an indirect rather than direct effect.

As far as how long you can wait before a lender will close or reduce an inactive card, that's incredibly variable depending on the lender. Once a year might be enough for some lenders while others want to see once a month. Some will also be more sensitive to the amount you're running through the card than others. Also, the same lender might not necessarily treat everyone the same in this regard. It'll likely depend on your individual credit profile to some extent too.

[Thomas_Thumb]

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@Anonymous wrote:

Hey everyone! I've got a quick question about card usage. From what I understand (thanks to stalking this board), it's best to virtually use ALL of your credit cards, but you do want to rotate them so you don't show all of your cards showing a balance, etc. So is it a bad thing if I have a credit card that I've had since October and literally haven't used it aside from paying the annual fee? Or that I have a couple of store cards that haven't seen any love from me quite yet? I do eventually plan on using them- because I wouldn't open a card that I wouldn't use, but is a time a factor right now? Will my credit score be affected for not using them for a couple more months or could my accounts be closed if I wait until summer hits?

I'm not too sure if it matters, but a card that I haven't even poked with a stick (strictly for padding) is Credit One Platinum Visa, and the store cards I plan on using in the summer time are Walmart, JC Penny, and American Eagle.

Thanks!

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A card will not be tagged as inactive until after 3 or more months of non use. Really virtually no chance of adverse action associated with non use until at least 6 months. Earliest anyone has posted account closure due to non use is 8 months with a Wells Fargo credit card. Lengthy of time does vary for AA, by credit card issuer.

I experienced a AA credit line reduction on a Visa card I only used once in 18 months and closure on an inactive card I did mot use for 52 months.

I would recommend using cards at least once every 3 to 5 months to avoid potential AA - you don't need to use every card every every month. I have one card, AMEX charge with a $55/year annual fee. At one time I let that card go a couple years without use - I figured a card with an annual fee did not run the risk of closure. It is a NPSL card so I was not concerned about a credit limit reduction.

Curious -anyone have a card with an annual fee closed due to inactivity? I can see a CLD for non use but closure seems unlikely.

[Anonymous]

OK. Thank you everyone for your input!

So far Kohl's, Capital One, Discover and Barclay are the only accounts seeing some love right now. Kohls and Cap One get payments every week and Discover and Barclay are PIF every time a balance is processed. Not much else has seen any love. Maybe it's time to tuck Kohls away and show a little JC Penny lovin' once it's paid off! Balance decreases aren't something I want happening!

[OmarGB9]

I think you mean limit decreases aren't something you want happening. Balances decreases you DO want. Lol.

[Anonymous]

@OmarGB9 wrote:
I think you mean limit decreases aren't something you want happening. Balances decreases you DO want. Lol.

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Yes, LOL! It was 3am. Excuse my spaghetti brain, hahaha.