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FICO scoring and unused CC

Anonymous
Not applicable

FICO scoring and unused CC

Are there any DPs of FICO taking into consideration a CC that is "dormant" meaning that it has never reflected a balance? Basically if a CC was obtained but never reflected any spend or showing a "high balance", would that affect the FICO algorithm?

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4 REPLIES 4
FireMedic1
Community Leader
Mega Contributor

Re: FICO scoring and unused CC

Nope. But put some usage on it min 6 months to a year to aviod closed by creditor. A stick of gum as we say. Smiley Happy



Homeowner Sept 2020. 2021 Explorer ST Chase 3.1%. Sharing my recovery after BK from learning here. Started 540's. EX FICO 9 801 as of 05/03/2023. I stayed around to pay it forward for those who helped me back then.
Message 2 of 5
Jnbmom
Community Leader
Super Contributor

Re: FICO scoring and unused CC

I have quite a few cards 😳having dormant accounts has not done a thing to my FICO it has been hovering in same range for the last 2 years. I have accounts I haven't used in well over a year . The only risk would be to myself and having creditors closing for non use ( I have had a few). I am always looking to close some anyway so sometimes they make it a little easier .

 

The ones I truly want to keep I just use once every six months , rinse and repeat .

EXP 780 EQ 791TU 795
Message 3 of 5
Anonymous
Not applicable

Re: FICO scoring and unused CC


@Jnbmom wrote:

I have quite a few cards 😳having dormant accounts has not done a thing to my FICO it has been hovering in same range for the last 2 years. I have accounts I haven't used in well over a year . The only risk would be to myself and having creditors closing for non use ( I have had a few). I am always looking to close some anyway so sometimes they make it a little easier .

 

The ones I truly want to keep I just use once every six months , rinse and repeat .


Learned my lesson when Comenity clawed back a couple for "non-use" last year. I guess its just a matter of Utilization padding and whether putting minimal spend to keep the TL aging beyond year 10 after closure is beneficial for the individual.

Message 4 of 5
CreditMarathoner
Frequent Contributor

Re: FICO scoring and unused CC

I've seen where some creditors will report payments each month even if the card was not used/paid during that statement cycle, while others don't.  I don't know if the FICO algorithm takes this into account or not, but if you look at your credit reports, you'll generally see a graph of the last few years of payment history and it should be marked off each month.  If it's not, that creditor may not report a payment if the card is unused (dormant, zero balance and no payment) that month.  Of course, now I'm probably speaking out of my posterior since I'm looking at my credit reports and seeing payments posted every month even on cards I know I didn't use for more than a month at times over the past few years.  Maybe it's only after a month with no activity that nothing is reported that I see this and it "catches up" next time it reports.  I also only have BoA and Chase cards, so other lenders may do things differently than these two.  I'll find out next year since I've added a 4th card which will likely see little activity after I earn the SUB.

 

It's always a good idea to use a card at least once every 6 months (3 months is even better) to avoid unwanted closures, CLDs etc. for non use.

 

    
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