Inactive Credit Cards

[haulingthescoreup]

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GFer wrote:

Sometimes, you gain points for using an inactive card! I especially think this would be true if you had minimal cards and/or have had no revolving activity in awhile.

Naturally, they want to see that you can handle all types of credit.

(You know the old saying..."...if you don't use it---you lose it?"

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Yes, my poor, abused DH went from 8-0-something on his TU to 795, because he hasn't been using either of his 2 (!) cards.

Life is hard up there in the oxygen-mask score ranges.

[GFer]

"Life is hard up there in the oxygen-mask score ranges."

I only dream of that problem!

[haulingthescoreup]

I used to have the comment (in the singular) from his credit reports as part of my siggy as a goal, and it will probably go back on again:

What’s hurting your FICO® score

Because your FICO® score is exceptionally high, there are no actionable negative factors present with your score. Continue to manage your credit as you currently are doing to maintain your very high FICO® score.

Looks like they've tweaked it. It used to say, "There are no negative factors affecting your score."

When I look at his scores, I feel like the runner-up in the beauty pageant! "Here, let me help you with your sceptre and crown!" Oh well, he earned his scores, and I earned mine. It's all good.

[kumiyer]

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@haulingthescoreup wrote:

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@Anonymous wrote:
If I use a card and pay it in full before the statement closing date, would it still be considered "inactive"?

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No, even if your balance due is zero, the CCC will report that you used the card.

In fact, if you charged more than you have in the past, that figure will show up as your new "highest balance." Real balance will still display as $0.

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I had another concern about utilization % calculation for revolving accounts:

Assume I only had one credit card with a CL of $1000. I max it out every month BUT PIF before the statement closing date. Will my utilization % be considered 0% or 100% - I am assuming 0% because a balance of $0 will be reported when the statement closes..... can anyone please confirm this !! 

Thanks

[haulingthescoreup]

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kumiyer wrote:

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@haulingthescoreup wrote:

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@Anonymous wrote:
If I use a card and pay it in full before the statement closing date, would it still be considered "inactive"?

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No, even if your balance due is zero, the CCC will report that you used the card.

In fact, if you charged more than you have in the past, that figure will show up as your new "highest balance." Real balance will still display as $0.

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I had another concern about utilization % calculation for revolving accounts:

Assume I only had one credit card with a CL of $1000. I max it out every month BUT PIF before the statement closing date. Will my utilization % be considered 0% or 100% - I am assuming 0% because a balance of $0 will be reported when the statement closes..... can anyone please confirm this !! 

Thanks

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Exactly right.

Your util is calculated off the balance that is reported. If $0 is reported, your util by definition will be 0%.

[RobertEG]

In one of their recent webinars, FairIsaac stated that accounts showing no reporting activity for six months or more are dropped from their scoring algorithm.  It probably takes them 8-9 months, due to reporting delays, to catch up with this, but per their pronouncement, inactive accounts are dropped from scoring.  Just use each account at least once every 3-4 months to guard against this.