CC closed for no activity.

[Anonymous]

If you have a paid off credit card and you do not use it sometimes the company will close it. What does that do to your credit score?

[haulingthescoreup]

Probably nothing much, depending on the card's credit limit compared to your total revolving credit limit, and whether you allow balances to report.

So if this card had a $300 CL, and your total CL is $5500, this would drop your total CL to $5200. That's not much of a drop.

But if you have a total balance (from all cards) reporting of $2600 (48% util), the drop in total CL would now make your util 50% (same balance divided by lower CL), and that might affect your scores.

The higher the CL from the closed account, the more effect its closure might have, because it will represent a higher proportion of your total revolving CL.

The notation of "closed by lender" has NO effect on your FICO scores. Technically it might catch the eye of a future lender, but considering the credit carnage of the last 18 months and the number of clean accounts closed by banks, I doubt anyone will blink.

You might read fused's "Closing Credit Cards" for more info. It's linked in my siggy below.