When do cards go dormant and what are the consequences?

[pdxuser]

I'm considering getting a Macys store card, but I'm wondering when it would go dormant if I don't use it. I'm also wondering what the consequences would be. Who determines that a card is dormant, Macys or the CRAs? What happens to my score when it goes dormant and what happens when I use it again?

[Cleanmachine]

Each creditor have their own policy as to when an account goes dormant.

There is no one shoe that fits all when is comes to credit scoring on a dormant account.

Some have seen a score drop after 3-months of reporting zero balance, and some have seen a score increase after a dormant account has been used after six months.

Bottom line as far as scoring, it would depend on other factors in your credit report.

[pdxuser]

I'm still confused. 3 months of inactivity hurts your FICO score, but that isn't dormancy? Dormancy is something the creditor decides? What effect would that decision have on anything, if FICO already has its 3-month rule?

[Anonymous]

For it to impact your score, the creditor would have to stop reporting the update every month. I have not seen a 3 month rule from FICO though.

FWIW, I don't use my Macy's account very much at all and they have not closed it nor stopped updating and even gave me an auto CLI with no use.

[pdxuser]

How long have you gone without activity?

[Anonymous]

Longest on Macy's 6 month's. I just used it to buy DD her homecoming dress.

[pdxuser]

Ok, so dormancy is when a creditor stops reporting your account. And that is separate from closing your account. So as long as Macys continues to report, it won't be a problem with FICO that I'm not using it?

[Anonymous]

Yes, it is seperate from being closed. But, if I am remembering correctly, a dormant account is not counted in utility and thus could drop your score. (Someone correct me if I am wrong)

It cost the ccc's money to update every month, whether you use it or not. To be on the safe side these day's, I wouldn't go over 6 month's if you can help it. Many ccc's are decreasing limits and closing inactive accounts that are costing them money to maintain. But, I am sure you noticed that?

Macy's has been showing alot of AR's on my EX and EQ reports, so I am wondering if I should use it more. I do have a GEMB account that I have not used ever and am waiting for it to be closed since they are on the rampage. It is for the furniture store, so not like I can swipe it for a soda.