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Not use Visa and received a letter they will close the account, what to do?

DKTVPN 3,520 1,815 June 14, 2016 at 09:56 PM
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I've received a letter for my visa hasn't been use for 15 months saying I need to use it or they will close that account. Will my Fico score be lower if I let them close it?

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#2
Quote from DKTVPN View Post :
I've received a letter for my visa hasn't been use for 15 months saying I need to use it or they will close that account. Will my Fico score be lower if I let them close it?
yes once closed, your credit score may decrease a bit depending on how long the account was open. you can use it fr a small purchase to reset last used period
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#3
Quote from greatmall View Post :
yes once closed, your credit score may decrease a bit depending on how long the account was open. you can use it fr a small purchase to reset last used period
Damn, I just remembered I got 3 Amex from Costco (using only 1) and they all close June 20th. How many points will they cost my score?
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#4
Quote from DKTVPN View Post :
I've received a letter for my visa hasn't been use for 15 months saying I need to use it or they will close that account. Will my Fico score be lower if I let them close it?
If there is no annual fee on the card, make a $5 utility payment and keep the card. Just set a calendar reminder to do the same thing every 10 months and never worry about it again.
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"This whole.. I have XX company so my pee pee is 2" longer talk is hilarious. Who cares what company is cheapest, best, etc. Pick the company and plan you want and keep it to yourself."
#5
Depending on your credit utilization ratio, your credit score will decrease unless you currently have 0 credit card debt since your ratio is already 0.

Also, if it's an old account, you want to keep that active since credit history is a good portion of your credit score.
I still have my first credit card I got when I was 18 in 1999 from Discover. I use it once every few months to keep the account active.
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#6
So just use it to buy a pack of gum.
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#7
Thanks for your replies!

Waiting for them to send me the card (couldn't find it anywhere) and will buy something small.

Back to Amex question: what will happen with my score when they close my 3 Amex?
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#8
Quote from DKTVPN View Post :
Thanks for your replies!

Waiting for them to send me the card (couldn't find it anywhere) and will buy something small.

Back to Amex question: what will happen with my score when they close my 3 Amex?
Isn't Citi sending you visas to replace the costco amexs? If so it won't affect your score. If they are infact closing the biggest issue is your credit utilization.

Say you have $50k in credit available and you are carrying a $5k balance, your utilization is 10% which is pretty good/OK.

If they close the Amex's and you now only have $10k of credit available and are carrying a $5k balance your utilization is now 50% which does not look good and your score will take a hit.

The actual closing of the cards will not hurt you immediately, it's only really the credit utilization.
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#9
Quote from bta15 View Post :
Isn't Citi sending you visas to replace the costco amexs? If so it won't affect your score. If they are infact closing the biggest issue is your credit utilization.

Say you have $50k in credit available and you are carrying a $5k balance, your utilization is 10% which is pretty good/OK.

If they close the Amex's and you now only have $10k of credit available and are carrying a $5k balance your utilization is now 50% which does not look good and your score will take a hit.

The actual closing of the cards will not hurt you immediately, it's only really the credit utilization.
Yes, I got all 3 City Visas.

I'm not that rich to pay any kind of interest so I don't carry any balance. I guess my credit score is still good as you stated.
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#10
Quote from DKTVPN View Post :
Yes, I got all 3 City Visas.

I'm not that rich to pay any kind of interest so I don't carry any balance. I guess my credit score is still good as you stated.
Then in the eyes of the credit bureaus, you did not close 3 cards. They were simply transferred to another company. There is no impact to your credit score.
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#11
*if* here is a hit to your credit score it'll be 1-2 points max ... It looks worse to credit companies when you self close an account compared to them closing due to inactivity. (I know that doesn't make sense but it's true). Sometimes having too much unused credit will hurt you worse then having too much debt to income ratio. The way credit companies see it say you have 100k available credit and currently carrying a zero balance that is more of a risk because you *could* get underwater in a flash compared to the guy who is already treading water but making his payments on time and is 200k maxed out credit
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#12
Quote from daadvocte View Post :
*if* here is a hit to your credit score it'll be 1-2 points max ... It looks worse to credit companies when you self close an account compared to them closing due to inactivity. (I know that doesn't make sense but it's true). Sometimes having too much unused credit will hurt you worse then having too much debt to income ratio. The way credit companies see it say you have 100k available credit and currently carrying a zero balance that is more of a risk because you *could* get underwater in a flash compared to the guy who is already treading water but making his payments on time and is 200k maxed out credit
Whatever you do, don't max out your credit just to boost a few points. I have around $150K credit, use maybe $5k a month paid off every month. Still have over 830 credit score even though I only use 3% of my credit.
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#13
This thread has motivated me to dig out all my unused CCs, make some $5-10 purchases, and set a "last used" date in the CC Excel file that I maintain. Last time I called Discover to inquire about whether I had a particular promotion available to me they actually chastised me for not using my card. laugh out loud
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As the username says ...
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