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The dangers of the Sock Drawer

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DaveInAZ
Senior Contributor

Re: The dangers of the Sock Drawer


@Anonymous wrote:

Then the issuer closes the account. That has happened to me also.


Yes, I learned from not using my Target Red card for almost a year when they CLD'd me from $1500 CL to $200, and never would raise back so I closed it. I don't let any card go more than a few months without using it. But you don't have to let it report a balance. My ancient no fee Merrick bank Visa hasn't got anything more than my $10.80 monthly Netflix sub in years and that seems to keep them happy, but the charge hits on the 20th and I PIF by the due date on the 10th of the next month, so it's been "inactive" on my CR for ages, but Merrick knows it's active. Same with my low interest but no rewards Visa from a local credit union, I give it a small charge every couple months and PIF before it can report the balance.

Message 21 of 34
Anonymous
Not applicable

Re: The dangers of the Sock Drawer

The decision to SD a card doesn't have to be black or white, as in either you do it [forever] or don't do it [ever].  It has been well-documented and advised on this forum that anyone deciding to SD a card still use it on occasion.  Whether that is every 3 months, 6 months, 9 months etc. depends on the person with the card in the SD and taking that specific lender/product into consideration based on how they're known to handle that product being inactive for X period of time.

Message 22 of 34
Thomas_Thumb
Senior Contributor

Re: The dangers of the Sock Drawer


@Anonymous wrote:

@Anonymous wrote:

 

Another reason to be a bit skeptical is that it is not entirely clear how the FICO 8 model (which was finalized in 2008, well  before the advent of trended data) would be able to look into the past, see that you hadn't used your card for five months, then penalize you for exactly one month, then remember a month later to remove the penalty.  In pretty much every other way FICO behaves based on a snapshot in time, without memory.  Odd that it would do this. 

 


The only data needed is the previously reported date of last activity and the newly reported date of last activity.  Anytime a tradeline reports, both these dates are available to the FICO algorithm.  If more than X months/days/years/etc. elapses between the previous and the new dates, it adjusts the score accordingly.

 

It also wouldn't necessarily be "exactly one month", but recalculated anytime that tradeline reports.  So, for example if it's a Chase card and two weeks later you pay it to zero and it does a mid cycle report, it would then see a much smaller difference between the current "date of last activity" and the previously reported "date of last activity" and the score penalty (if any) would be reversed.

 

In any case it's only a few points and there's no need to sweat over it.  Now if you have borderline scores and are shopping for a mortgage or something where you want optimum scores, it might be a good idea to either keep that card unused until after closing, or use it for a small amount and PIF a couple months before applying, or put a small recurring charge on and have autopay set up to PIF so the account stays active.

 

 


^ This poster is correct. The simple categorization of inactive => active requires no trended data. The same is true for knowing length of inactivity particularly if the DOLA field lists a date. Also, as mentioned above, a newly activated card may report with zeor balance, with a balance and a recent payment or with a balance and no recent payment. If a payment was made prior to a balance reporting, then the reported card would include a recent payment along with the reported activity. In such a case no score penalty. However, if 1st payment is made after the card reports with a balance, then a potential score penalty due to: balance on a newly active account with no recent payment history => potential risk. A pretty simple algorithm. Again, similar to a new account.

 

General side note: Accounts that are used but that report zero balances are active, not inactive.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 23 of 34
Anonymous
Not applicable

Re: The dangers of the Sock Drawer

I get these notifications all the time with zero impact to my score. Granted I never exceed 6 months.Screenshot_20180830-121221_myFICO.jpg

Message 24 of 34
Anonymous
Not applicable

Re: The dangers of the Sock Drawer


@Anonymous wrote:

I get these notifications all the time with zero impact to my score. Granted I never exceed 6 months.Screenshot_20180830-121221_myFICO.jpg


Then this is a real case of the FICO Ouija Board saying "Your Mileage May Vary". Here has been my recent experience:

7/18/18  New account added                                                   EQ          +6

7/20/18 Total balance on credit cards increases by $180  TU    No Change

7/21/18 Total balance on credit cards increases by $180  EX      +21

7/21/18 Total balance on credit cards increases by $180  EQ      +7

8/1/18   Old account deleted                                                    TU       -5

8/21/18 Total balance on crediy cards increases by $339  EX       -3

8/29/18 Balance on one account increases by $91              EX      No Change

8/29/18 Address or phone number changes                          EQ      -3

8/29/18 Inactive account comes back to life                          EQ    -3

8/29/18 Balance on one account increases by $91               EQ     -3

 

So.... add an account, lose points.

Use an account - lose points.

Pay off an account, lose points.

Lose an account - lose points.   

Use an account, if you don't lose points right away, wait a couple of hours - you will (8/29/18 EQ).

 

I think I may have better odds at a 3-card Monte table.    

Changes to Score.png

 

Message 25 of 34
Thomas_Thumb
Senior Contributor

Re: The dangers of the Sock Drawer

The main thing I conclude from the above data is to stop wasting money on the monitoring tool.

 

Multiple score altering events typically occur in between score triggering events - particularly for active files with many open accounts. The monitoring tool is creating schizophrenia. Changing your settings may help stabalize your score or at least keep you from hearing voices.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 26 of 34
AndySoCal
Valued Contributor

Re: The dangers of the Sock Drawer

The account is NOT inactive. Please check your  MF score monitering alert settings. It is considered inactive because of your alert settings not by the lender. Please refer the following thread https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Account-inactive-gt-6-mos-becomes-active...

 it is message 29 in this thread.

FICO Scores XPN v8 802 V2 831 (SDFCU) TUC 803 v8 EFX 807 (10/2023)
Discover 09/90 19,000, JCPenney 10/2008 4,700 US Bank Cash+ 12,000 Citibank Custom Cash 5/2015 11,100 C State Dept. FCU 15,000 06/2023 CLOSED: Walmart Capital 1 Banking: Discover Bank Ally Bank Credit Unions: Lafayette FCU Quorum FCU State Department FCU State Department FCU Pelican State CU Redstone FCU

Message 27 of 34
Anonymous
Not applicable

Re: The dangers of the Sock Drawer


@Anonymous wrote:

@Anonymous wrote:

 

Another reason to be a bit skeptical is that it is not entirely clear how the FICO 8 model (which was finalized in 2008, well  before the advent of trended data) would be able to look into the past, see that you hadn't used your card for five months, then penalize you for exactly one month, then remember a month later to remove the penalty.  In pretty much every other way FICO behaves based on a snapshot in time, without memory.  Odd that it would do this. 

 


The only data needed is the previously reported date of last activity and the newly reported date of last activity.  Anytime a tradeline reports, both these dates are available to the FICO algorithm. 

????  Correct me if I'm wrong, but  as far as I know, the Fico algorithm only looks at the current  report to determine  the Fico score.  So the Fico algorithm does not consider the previousy reported date of last activity.   

Message 28 of 34
Thomas_Thumb
Senior Contributor

Re: The dangers of the Sock Drawer

Fico says it looks at severity, frequency and recency of lates. So, the algorithm must look at payment history. That does not require any type of trending. The current report includes payment history.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 29 of 34
SweetCreditObsession
Valued Contributor

Re: The dangers of the Sock Drawer

Use the card every 2-3 months or you will take a small hit to your score when you use it.


(+102) | (+106) | (+151)
| TU Fico 9: ? | Exp Fico 9: ? | EQ Fico 9: ?| EQ Fico 8 Bankcard: TBA

Initial Goal: Min. 740 w/all CRAs - Met
Interim Goal: 780 w/all CRAs - Met
Current Goal(s): Min. 800 w/all CRAs
Gardening Until: ??/??/202?| Last App: 10/20/2023





Message 30 of 34
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