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Dormant Accounts (Credit Cards)

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NoHardLimits
Established Contributor

Re: Dormant Accounts (Credit Cards)


@HeavenOhio wrote:

"Too few accounts currently paid as agreed" means not having enough accounts with a clean payment record. A similar reason is too few accounts in good standing. If you're getting one of these reasons and you have a perfect payment record, it would make sense to assume that FICO sees your file as thin.


No, this is not the case with me.  I have an extremely thick and old file (over 30 tradelines and over 30 years).  No late payments ever.

 

The remark goes away after letting some accounts cut with a balance.

May 2024 Scorecard: Clean, Thick, Mature, New Revolver
FICO8:
FICO9:
VantageScore3:
Inquiries (n/12, n/24):
AAoA: 10 yrs | AoORA: 36 yrs | AoYRA: 0 mos | New Accounts: 1/6, 1/12, 3/24 | Util: 1% | DTI: 1%
Message 11 of 18
SouthJamaica
Mega Contributor

Re: Dormant Accounts (Credit Cards)


@HowDoesThisAllWork wrote:

Good afternoon, fellow myFico'ers!

 

Simple question, but a little bit of background.

 

So, if not interested in the background, please skip to the question!

 

So, I have been actively involved with this amazing forum for awhile now.  Have learned a lot.  Have been corrected a lot (which is a REALLY good thing).  Hopefully, have helped a little bit.

 

I have five credit cards and have followed AZEO religiously for a good bit now.  My Discover IT has been the one CC that I have intentionally and specifically allowed to report a balance (on the Statement Closing Date).  I have always paid that "reported balance" in full (on or before the Due Date) so I have never paid one red cent of interest.

 

Until recently.

 

In the last month of so I have specifically and intentionally allowed each of the five credit cards to report a balance.

 

QUESTION: I have received multiple notifications (all from Experian) about "Dormant Account activated".  So, to be clear, on the four other cards (that have essentially reported $0 balances on the "Statement Closing Date") I received a notification from Experian (and, maybe oddly, only Experian) that a Dormant Account has been activated.  What is this?

 

It's a user-initiated alert, not a FICO thing. Don't worry about it.

 

So, for us AZEO'ers - is this something that we need to "worry" about?

 

Thanks!


 


Total revolving limits 657200 (536700 reporting) FICO 8: EQ 712 TU 710 EX 708

Message 12 of 18
Anonymous
Not applicable

Re: Dormant Accounts (Credit Cards)

This has happened to me on Experian. Thick file but it was an account that had not reported a balance and then did. No effect on anything. As has already been stated in this thread a heads up for your security. No other purpose.
Message 13 of 18
FireMedic1
Community Leader
Mega Contributor

Re: Dormant Accounts (Credit Cards)


@NoHardLimits wrote:

@Remedios wrote:

@HowDoesThisAllWork wrote:

Good afternoon, fellow myFico'ers!

 

Simple question, but a little bit of background.

 

So, if not interested in the background, please skip to the question!

 

So, I have been actively involved with this amazing forum for awhile now.  Have learned a lot.  Have been corrected a lot (which is a REALLY good thing).  Hopefully, have helped a little bit.

 

I have five credit cards and have followed AZEO religiously for a good bit now.  My Discover IT has been the one CC that I have intentionally and specifically allowed to report a balance (on the Statement Closing Date).  I have always paid that "reported balance" in full (on or before the Due Date) so I have never paid one red cent of interest.

 

Until recently.

 

In the last month of so I have specifically and intentionally allowed each of the five credit cards to report a balance.

 

QUESTION: I have received multiple notifications (all from Experian) about "Dormant Account activated".  So, to be clear, on the four other cards (that have essentially reported $0 balances on the "Statement Closing Date") I received a notification from Experian (and, maybe oddly, only Experian) that a Dormant Account has been activated.  What is this?

 

So, for us AZEO'ers - is this something that we need to "worry" about?

 

Thanks!


 

That's just a fraud warning shot in case it wasn't you.

Most consumers dont have cards that report for years, so sudden activity is an alert, not a scoring characteristic. 


Yes, the credit monitoring services will issue this type of alert when a card is used but does not cut with a statement balance for a while.  I have seen this with Experian many times.  However, there does seem to be a real FICO scoring factor if too many of your accounts don't report a balance for around a year or so.  I'm not sure what the threshold is but Experian FICO will eventually generate a remark that says "too few accounts currently paid as agreed".  The remark will go away once some of those accounts report a balance.


Dont believe this is correct. Theres no penalty to FICO scores from not using a card around a year. See below.

@HowDoesThisAllWorkIf it causes concerns. Just alternate your cards to be the AZEO card as I do. This way they all get used and dont have to worry about AA for non use. KISS as you posted.


Message 14 of 18
HowDoesThisAllWork
Frequent Contributor

Re: Dormant Accounts (Credit Cards)


@FireMedic1 wrote:

@NoHardLimits wrote:

@Remedios wrote:

@HowDoesThisAllWork wrote:

Good afternoon, fellow myFico'ers!

 

Simple question, but a little bit of background.

 

So, if not interested in the background, please skip to the question!

 

So, I have been actively involved with this amazing forum for awhile now.  Have learned a lot.  Have been corrected a lot (which is a REALLY good thing).  Hopefully, have helped a little bit.

 

I have five credit cards and have followed AZEO religiously for a good bit now.  My Discover IT has been the one CC that I have intentionally and specifically allowed to report a balance (on the Statement Closing Date).  I have always paid that "reported balance" in full (on or before the Due Date) so I have never paid one red cent of interest.

 

Until recently.

 

In the last month of so I have specifically and intentionally allowed each of the five credit cards to report a balance.

 

QUESTION: I have received multiple notifications (all from Experian) about "Dormant Account activated".  So, to be clear, on the four other cards (that have essentially reported $0 balances on the "Statement Closing Date") I received a notification from Experian (and, maybe oddly, only Experian) that a Dormant Account has been activated.  What is this?

 

So, for us AZEO'ers - is this something that we need to "worry" about?

 

Thanks!


 

That's just a fraud warning shot in case it wasn't you.

Most consumers dont have cards that report for years, so sudden activity is an alert, not a scoring characteristic. 


Yes, the credit monitoring services will issue this type of alert when a card is used but does not cut with a statement balance for a while.  I have seen this with Experian many times.  However, there does seem to be a real FICO scoring factor if too many of your accounts don't report a balance for around a year or so I'm not sure what the threshold is but Experian FICO will eventually generate a remark that says "too few accounts currently paid as agreed".  The remark will go away once some of those accounts report a balance.


Dont believe this is correct. Theres no penalty to FICO scores from not using a card around a year. See below.

@HowDoesThisAllWorkIf it causes concerns. Just alternate your cards to be the AZEO card as I do. This way they all get used and dont have to worry about AA for non use. KISS as you posted.


@FireMedic1 

 

Really solid advice.  However, and this is very often the case with me, this is not so simple!  Why?  Soooooo glad you asked (because I get to flex a little bit here...HA! HA!  Translation - I get to fall flat on my face in public!).

 

So, the five credit cards that I have:

 

1.  Discover IT

2.  Capital One QuickSilver

3.  Lowe's Store Card (Synchrony)

4.  Navy Federal Credit Union cashREWARDS

5.  Amex Blue Cash Everyday

 

So, what I believe that I have learned from this forum us as follows:

 

1.  Strike away - from the AZEO 'rotation' - the Lowe's Store Card (because using 'store cards' is not a good idea with respect to AZEO).

2.  Strike away - from the AZEO 'rotation' - the NFCU cashREWARDS card (because credit union cards are not a good idea here).

3.  Strike away - from the AZEO 'rotation' - the AMEX BCE card (because AMEX does not play well in the AZEO world).

 

So, that leaves the Discover IT card and the Capital One QuickSilver card.

 

Do I have this correctly in mind?  Or am I suffering from (some would contend 'yet another') Senior moment?

 

Thanks, man!  I always appreciate your insight.

 

 

PS.  I highlighted the "no effect in FICO" section of this to add this:  while my FICO scores have not been affected (seemingly) by having all a dormant account report, I will suggest that the VantageScores (both 3.0 and 4.0) have.  Now, I know that we do not really care all that much about VantageScore scores here, but as a point of discussion it does seem to have resulted in a VERY NICE increase.  I am hedging my words here as I do not know - other than this card (quote unquote dormant) reporting a balance for the first time ever.

FICO 8 Scores as of 2022 JULY 04:

FICO 9 Scores as of 2022 JULY 04:

FICO Auto 8 Scores as of 2022 JULY 04:

FICO Auto 9 Scores as of 2022 JULY 04:

FICO Bankcard 8 Scores as of 2022 JULY 04:

FICO Mortgage 2/4/5 Scores as of 2022 JULY 04:

Starting Score: Exp 627
Current Score: Exp 713
Goal Score: Exp 750+

Take the myFICO Fitness Challenge
Message 15 of 18
HowDoesThisAllWork
Frequent Contributor

Re: Dormant Accounts (Credit Cards)


@HeavenOhio wrote:

"Too few accounts currently paid as agreed" means not having enough accounts with a clean payment record. A similar reason is too few accounts in good standing. If you're getting one of these reasons and you have a perfect payment record, it would make sense to assume that FICO sees your file as thin.


@HeavenOhio 

 

Oh, this is a really good point, potentially.  I am no where near intelligent enough to assume, so I will leave that to those of us (myFico forum colleagues) who are!  But it is very logical - at least to me.

FICO 8 Scores as of 2022 JULY 04:

FICO 9 Scores as of 2022 JULY 04:

FICO Auto 8 Scores as of 2022 JULY 04:

FICO Auto 9 Scores as of 2022 JULY 04:

FICO Bankcard 8 Scores as of 2022 JULY 04:

FICO Mortgage 2/4/5 Scores as of 2022 JULY 04:

Starting Score: Exp 627
Current Score: Exp 713
Goal Score: Exp 750+

Take the myFICO Fitness Challenge
Message 16 of 18
HowDoesThisAllWork
Frequent Contributor

Re: Dormant Accounts (Credit Cards)


@SouthJamaica wrote:

@HowDoesThisAllWork wrote:

Good afternoon, fellow myFico'ers!

 

Simple question, but a little bit of background.

 

So, if not interested in the background, please skip to the question!

 

So, I have been actively involved with this amazing forum for awhile now.  Have learned a lot.  Have been corrected a lot (which is a REALLY good thing).  Hopefully, have helped a little bit.

 

I have five credit cards and have followed AZEO religiously for a good bit now.  My Discover IT has been the one CC that I have intentionally and specifically allowed to report a balance (on the Statement Closing Date).  I have always paid that "reported balance" in full (on or before the Due Date) so I have never paid one red cent of interest.

 

Until recently.

 

In the last month of so I have specifically and intentionally allowed each of the five credit cards to report a balance.

 

QUESTION: I have received multiple notifications (all from Experian) about "Dormant Account activated".  So, to be clear, on the four other cards (that have essentially reported $0 balances on the "Statement Closing Date") I received a notification from Experian (and, maybe oddly, only Experian) that a Dormant Account has been activated.  What is this?

 

It's a user-initiated alert, not a FICO thing. Don't worry about it.

 

So, for us AZEO'ers - is this something that we need to "worry" about?

 

Thanks!


 


@SouthJamaica  - that also makes perfect sense, logically.  I have only a paid account with Experian and am only receiving this alert / warning from Experian.  I will have to comb the Experian account to see if I have checked this box (so-to-speak.....or, possibly more accurately, if it is checked by default).  Will update once I do.  Just for the sake of being thorough and complete.

FICO 8 Scores as of 2022 JULY 04:

FICO 9 Scores as of 2022 JULY 04:

FICO Auto 8 Scores as of 2022 JULY 04:

FICO Auto 9 Scores as of 2022 JULY 04:

FICO Bankcard 8 Scores as of 2022 JULY 04:

FICO Mortgage 2/4/5 Scores as of 2022 JULY 04:

Starting Score: Exp 627
Current Score: Exp 713
Goal Score: Exp 750+

Take the myFICO Fitness Challenge
Message 17 of 18
FireMedic1
Community Leader
Mega Contributor

Re: Dormant Accounts (Credit Cards)

@HowDoesThisAllWorkI saw the KISS method in another thread you responded in. Smiley Very Happy

1. Discover IT

2. Capital One QuickSilver

3. Lowe's Store Card (Synchrony)

4. Navy Federal Credit Union cashREWARDS

5. Amex Blue Cash Everyday

You can alternate 4 of the 5 reporting. Since your AZEO. Little spend and PIF before statement date with Loews. Its all good. I just went with 2 responses in one post. Just trying the KISS method. Smiley Very HappySmiley HappySmiley LOL


Message 18 of 18
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