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Not using cards or auto closing?

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Skye12329
Valued Contributor

Not using cards or auto closing?

Can someone elaborate a little, because im trying to get the correct answer. If i understand correctly if you dont use your card at least once a month less than 30% it hurts you. Would it be more logical just to close it? Because i know some store cards after a year of not using will automatically close. 

BK7 - 2/21
Cap1 QS - 2k (4/21)
Mission Lane - 4k (11/21)
Venmo - 900 (11/21)
SavorOne - 2500 (12/21)
VentureOne - 2000 (7/22)
Message 1 of 13
12 REPLIES 12
Sabrian31487
Regular Contributor

Re: Not using cards or auto closing?

Let one of your credit cards report between 1-10% and all your other cards report zero.  Swap the cards every month to show usage so accounts dont get closed.. You dont have to use all your cards every month, just one.. 

Discover IT 02/2013 (1000.00),Chase Freedom 02/2013 (3000.00),AmEx Blue Cash Everyday 06/2013 (3000.00)
Citi Simplicity 06/2013 (1000.00)
TU FICO - 718 , CK TU - 738 , Credit.com EX - 727, Quizzle.com - 720, CreditSesame.com - 720

Message 2 of 13
SnackTrader
Valued Contributor

Re: Not using cards or auto closing?

Skye,

You are referring to two different things in your post.

One is utilization, which is the balance of your cards as a percent of your credit limits that reports to the credit bureaus. The higher this number is, the bigger the hit to your credit score. Feel free to search around the forums for more on utilization, or read some posts in this labyrinth of links:

http://ficoforums.myfico.com/t5/Credit-Cards/Help-understanding-credit-cards-amp-the-best-way-to-use...

The second thing you allude to is inactivity. A card becomes inactive after it is not used at all for a certain period of time. For my capital one card, CSRs told me it takes 90 days. When a card becomes inactive, most companies will close the tradeline, which has the ability to hurt your utilization. If you want to keep a card, most of us suggest that you use it once a month or so, and pay off the balance.

You don't need to allow a balance to report ever. In fact, you could pay all your credit cards to zero whenever you want, and all your card issuers would probably be happy they got their money back. But for better scores, it is recommended that you pay all cards to $0 before the statement date, except one, where you leave a balance of 1-9% of the credit limit. You only need to do this in months where you are applying for new credit.


In My Wallet: Amex BCP (12/12) $50,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Prestige (4/16) $30,000

Last App: June 27, 2015
Message 3 of 13
nvrgvupnvrsrndr
Contributor

Re: Not using cards or auto closing?

I guess I'm a little confused here as well. I often seen comments/responses here where individuals use the term "sock drawer card" when referring to credit cards they don't use very often and only keep around for the tradeline and to help with utilization. If memory serves correct, I thought the standard was to use a card at least once every 6 months. My personal experience...I have accounts that only see activity once every 4-6 months.
Message 4 of 13
SnackTrader
Valued Contributor

Re: Not using cards or auto closing?

For Many people, when they sock drawer a card, they put a recurring charge like Netflix on it, then schedule automatic payments so they can just ignore it. Others pull out the cards from time to time and use them for something small.

My Capital One is being used by an AU, so that helps me keep it active.

In My Wallet: Amex BCP (12/12) $50,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Prestige (4/16) $30,000

Last App: June 27, 2015
Message 5 of 13
nvrgvupnvrsrndr
Contributor

Re: Not using cards or auto closing?

Understandably, a generalized term like "sock drawer card" is going to have a different meaning to most. I guess my point is from personal experience I have not had any cards closed after not using them for 90 days. I have 14 revolving tradelines(credit cards/store cards) and regularly go without using some of them for 4-5 months. However, I've never allowed any account to go 6 months without use. As always, YMMV.
Message 6 of 13
longtimelurker
Epic Contributor

Re: Not using cards or auto closing?

Yes, very much YMMV.   I didn't use an Amex for 3 years without issue, and another card I use less than once a year.   I also have a card I haven't used for 4 years, two years ago they told me they weren't sending me a renewal card, but left the account open.

Message 7 of 13
GatorGuy
Valued Contributor

Re: Not using cards or auto closing?

If you aren't using them then they won't report either so they aren't helping your credit.

Message 8 of 13
Dubious
Frequent Contributor

Re: Not using cards or auto closing?


@GatorGuy wrote:

If you aren't using them then they won't report either so they aren't helping your credit.


This isn't true. Cards from major banks will still report. 

Message 9 of 13
SnackTrader
Valued Contributor

Re: Not using cards or auto closing?

+1 a $0 balance reports just the same as any other balance in my experience. I know some cards are different in this respect, but all those in my signatures have reported $0 balances in the past for me.

In My Wallet: Amex BCP (12/12) $50,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Prestige (4/16) $30,000

Last App: June 27, 2015
Message 10 of 13
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