Hey everyone,
So I started going through my report to find any issues I’ve not previously identified. I found several old cards from a previous marriage that I was an AU on that stated responsibility terminated but were basically being reported in good standing but showed no recent balance activity. Based on information I read here I discovered that inactive accounts can actually damage your credit file.
Therefore, I disputed and had these accounts removed. So that’s the foundation to lay out my question. On my VS3 the removal of said accounts resulted in an increase in my VS3 score by almost 60 points. So my question; How are inactive accounts weighted on MyFICO? Will I see a similar but not as major score increase? Or are inactive but good standing accounts not weighted as badly on MyFICO as they apparently are on VS3.
Thank you to anyone who can provide an feedback or guidance on this.
So I started going through my report to find any issues I’ve not previously identified. I found several old cards from a previous marriage that I was an AU on that stated responsibility terminated but were basically being reported in good standing but showed no recent balance activity. Based on information I read here I discovered that inactive accounts can actually damage your credit file.
Therefore, I disputed and had these accounts removed. So that’s the foundation to lay out my question. On my VS3 the removal of said accounts resulted in an increase in my VS3 score by almost 60 points. So my question; How are inactive accounts weighted on MyFICO? Will I see a similar but not as major score increase? Or are inactive but good standing accounts not weighted as badly on MyFICO as they apparently are on VS3.
Thank you to anyone who can provide an feedback or guidance on this.
Thanks for the reply CreditGuy, I have my next 3B in 7 days so will find out then for sure. But was wondering if there is any newer concrete information on this. A forum search did show an inactive account that then goes active can cause a short score drop, and full reports obtained through AFCR does show inactive codes and some payment information.
They were reporting zero balances but haven’t updated in over 18 months with any activity, when they were reported as responsibility terminated. Oddly though VS3 and FICO were still calculating them on my AAoA and Utilization even with the code relationship terminated entered. On removal of the two accounts it raised the VS3 score by 60 points. When looking at WalletHub I found this description of the improvement on my updated report; “Number of Accounts that have no recent information reported - 3 down to 1” it show this as a positive update. The VS3 increase was reported on all apps including Credit Karma. Thanks again for the response, and any additional info anyone can add.
What I’m wondering is if algorithms now take into account inactivity as signs the account will be closed soon after say 12 months of inactivity, and lenders see that as a negative when issuing new lines of credit as your not using the credit you’ve got. In my case it was upwards of $12,000 not being used and showing inactive for 18 months.
They were reporting zero balances but haven’t updated in over 18 months with any activity, when they were reported as responsibility terminated. Oddly though VS3 and FICO were still calculating them on my AAoA and Utilization even with the code relationship terminated entered. On removal of the two accounts it raised the VS3 score by 60 points. When looking at WalletHub I found this description of the improvement on my updated report; “Number of Accounts that have no recent information reported - 3 down to 1” it show this as a positive update. The VS3 increase was reported on all apps including Credit Karma. Thanks again for the response, and any additional info anyone can add.
What I’m wondering is if algorithms now take into account inactivity as signs the account will be closed soon after say 12 months of inactivity, and lenders see that as a negative when issuing new lines of credit as your not using the credit you’ve got. In my case it was upwards of $12,000 not being used and showing inactive for 18 months.
@Anonymous wrote:VS 3.0 can be quite misleading and not indicative of what's going on with your FICO scores, so I wouldn't waste any time or thought regarding them.
This Above. I agree. In my experience the vantage is usually way off. But I am also sure there are some who will swear by it being very close to their Fico's.
