Inactive accounts

[rubaty]

Does having inactive account hurt or help your score?  I have 3 inactive accts on each report.

[Anonymous]

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rubaty wrote:

Does having inactive account hurt or help your score?  I have 3 inactive accts on each report.

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What do you mean by inactive?  Are they closed, or are they open but you just haven't used them in a while?

[rubaty]

1 is a previous mortgage that was paid off in 2005 and the others are open CC that haven't been used in 2 or more years.

[Anonymous]

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rubaty wrote:

1 is a previous mortgage that was paid off in 2005 and the others are open CC that haven't been used in 2 or more years.

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If they don't have any lates or other baddies associated with them, just having them on your reports is not hurting you in and of itself. 

The mortgage is no longer counting towards your mix of credit, since it is paid off.  But it is contributing to your average age and payment history (to some degree at least).

The CCs are most likely not being counted in utilization since they have been inactive for so long.  It's a good idea to use each card every few months so that both FICO and the CC issuer will be happy.  Just use them for a cheeseburger or a cup of coffee or a pack of gum even, then pay the bill in full once the statement cuts.  This keeps the CC issuer from closing your account due to inactivity, and it also makes FICO count the cards in its utilization equation.

[rubaty]

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cheddar wrote:

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rubaty wrote:

1 is a previous mortgage that was paid off in 2005 and the others are open CC that haven't been used in 2 or more years.

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If they don't have any lates or other baddies associated with them, just having them on your reports is not hurting you in and of itself. 

The mortgage is no longer counting towards your mix of credit, since it is paid off.  But it is contributing to your average age and payment history (to some degree at least).

The CCs are most likely not being counted in utilization since they have been inactive for so long.  It's a good idea to use each card every few months so that both FICO and the CC issuer will be happy.  Just use them for a cheeseburger or a cup of coffee or a pack of gum even, then pay the bill in full once the statement cuts.  This keeps the CC issuer from closing your account due to inactivity, and it also makes FICO count the cards in its utilization equation.

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That's what I do with my major CC but unfortunately these are store cards and they won't ship to APO addresses!  I guess the next time I come to the states I need to bring them with me and buy a shirt!

[Anonymous]

Interestingly enough, I have a Marks and Morgan jewelry store card. It is my oldest account at some 8.5 years. First credit I ever got.

I went to the store to use it and was told it was inactive, and I had to fill out a form. They bumped my CL from $300 to $5000 and I made a purchase.

Shortly later I got a SW alert telling me my inactive account had become active and this gave me a +7 score increase. I'm sure the extra CL helped too though.

[Anonymous]

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FretlessMayhem wrote:
Interestingly enough, I have a Marks and Morgan jewelry store card. It is my oldest account at some 8.5 years. First credit I ever got.

I went to the store to use it and was told it was inactive, and I had to fill out a form. They bumped my CL from $300 to $5000 and I made a purchase.

Shortly later I got a SW alert telling me my inactive account had become active and this gave me a +7 score increase. I'm sure the extra CL helped too though.

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The 7 points probably came from the CC's CL starting to factor into util again.  As I mentioned above, FICO stops counting a CC into util after it has been inactive for a while.  (Not sure about the exact time frame.  Theories range from 3-6 months.)