Please Reply: Negatives of Inactivity

[OptimalCS]

I'm a very poor handler of credit cards. I always max out and it normally takes me 5-6 months to pay off my seven cards to zero. This month I finally paid them off to a zero balance. I find it very difficult to not use them at times. But I need to have revolving credit to build my score. My question is I'm thinking of physically cutting them up as appose to closing them for about five months until I close on my house. Will inactivity negatively affect my scores for this period of time? Will the CCC close my accounts for inactivity?  Please reply

[Anonymous]

The CC urge is what hurts many people. Needing revolving accounts does not mean you need to max the cards out to obtain the credit score, and is actually detrimental to your scores by maxing them out.. Depending on the CC issuer it is possible for them to close the account for inactivity (in most cases would be after 1 year of non usage). 

Cutting up and or closing the accounts out will not hurt your scores presently. The impact would be later down the road (can report up to 10 years, sometimes longer) when and if they fall off your CR's. 

[MarineVietVet]

---

@lassjrmatt wrote:

I'm a very poor handler of credit cards. I always max out and it normally takes me 5-6 months to pay off my seven cards to zero. This month I finally paid them off to a zero balance. I find it very difficult to not use them at times. But I need to have revolving credit to build my score. My question is I'm thinking of physically cutting them up as appose to closing them for about five months until I close on my house. Will inactivity negatively affect my scores for this period of time? Will the CCC close my accounts for inactivity?  Please reply

---

I don't know how many cards you have but one thing I do is have most of my cards set up to pay a recurring monthly expense such as water, cable, electric, etc. That way I don't have to concern myself with what card needs to used this month to show activity. If you do this just make sure you double check that the payments actually posted. You don't want any unpleasant surprises. But I've never had a problem paying some of my bills this way.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

If you have as much trouble as you say you do controlling your credit card spending, then I'd argue that any drop in score due to inactivity would pale in comparison to maxing your cards out again.

I hate to be blunt, but it seem to me that you only have two real options:

1. Learn to control yourself and use one card up to 9% util (and let it report to the CRAs) and pay it off EVERY month or

2. Cut your cards up and don't look back.

For some people, credit is more of a hindrance than a help.

Good luck with the house.