CARD CLOSED DUE TO INACTIVITY - SCORE DOWN 5 PTS!

[Anonymous]

I didn't use my Best Buy card since it turned into a regular credit card in the time alotted after email notification, so they closed it due to inactivity and it knocked my score down 5 points! I get penalizied for underusing my credit??? 

[Anonymous]

5 points is nothing.  My scores fluctuate by 5 points all the time without me doing anything.  I think you will survive.

[Anonymous]

I was more so wondering why I'm being punished for not using my credit card. I apologize for the caps in the subject line.

[Anonymous]

You might be being punished for the closing of a trade line, or it could be there was something else that changed and did not trigger an update and that was the score update trigger. It wasnt for not using the credit, tho. Not having the credit is more important.

[EddieK]

You most likely got hit for a utilization increase due to the closed card, rather than the card itself being closed.

[Anonymous]

Sorry, "utilization increase?"

[tufa4311]

Yes, utilization increase. Your overall utilization, the %age of your credit that you are actually using is derived from how much of your credit you are using against how much credit you have. For ex, if your overall credit availability is $100 on two cards, and you are using $25 then your overall utilization is 25%, now, if you were to cut one of those cards from your credit line thus loosing $50 dollars credit well now you would be using 50% with no change at all in your balance. The less credit you have available to you the higher your utilization will be for the remaining credit. And the higher your util the lower your score.

[Anonymous]

Thanks for the clear answer! I get it! That makes sense!

[daniki]

Hey, just curious, how long was it that you didn't use your card? I have a Best Buy card that I haven't used in almost 6 months and I'm getting worried they're going to close it. I haven't received an email or a letter about it yet though. Hopefully they will notify me before closing and give me time to use it?

[Anonymous]

When the Best Buy cards were bought out by Synchrony(?) I activated mine but never used it. I did receive an email telling me I needed to use it before a certain date or they would close it, but I forgot to use it in time. So it seems to be their policy to warn you before closing it.