Non-use of credit cards lowering credit score is this true?

[phatchristy]

Back around 4 months ago I got an incredible credit card offer. It was for 2%back on purchases. Since we always pay our bills every month I jumped at the chance (often those kind have lots of catches though if you keep a balance which we do not).

Anyhow, as a result, my other card I'm not using at all. I now have two credit cards, a master card and a visa. I find I'm using the 2% master card all the time now.

DH tells me that I should use the Visa at least once a month so that they visa company will report positively to the credit bureaus each month. Otherwise it could be negative. Is THIS true? And if so, to what extent?

We're not planning on getting loans or anything, but DH keeps on bugging me to use that card to keep my score high. Thoughts?

[Stace]

They won't report it as negative. Negative stuff is going over your limit or being late on/not making payments. However, it is a good idea to keep your cards in use, even if it's just a small item that you turn around and pay right off. If you go too long without using the card, there are a lot of companies that will close your account because they're not making any money at all off of you, and they'll view your non-use as you thinking you don't need that card anymore or something.

[oneKnight]

Yeah, they'll close your account without telling you. One day you'll go to use it and bam! it won't work anymore. Some companies do it, others don't.

[polyhymnia]

It's a good idea to use it occasionally. I have one credit card I rarely use but want to keep, and I have my $15/month Blockbuster Online membership on that card. I use the other card for everything else (I get cash back on this card, but have a lower limit so can't always put big purchases on it, which is why I keep the other card).

[mightymoo]

I'm wondering what card you are getting 2% back on all purchases?!

Originally Posted by oneKnight

Yeah, they'll close your account without telling you. One day you'll go to use it and bam! it won't work anymore. Some companies do it, others don't.

Yeah, sears does this to me. Last time we bought appliances, we opened one cuz 10% off, and they asked if we wanted a sears mastercard, we'd get like 3% back when shopping at sears, so I was like why not and then about 8 months later I was buying something at sears and figured I'd use the sears card and it was rejected. WTF? I cancelled it because I don't shop at sears enough to appearntly be able to keep it open, and besides, next time I buy something big I can open it again and get 10% off.

[mightymoo]

I know they have sites that tell you your credit score, but do they have ones that analyze it and tell you exactly what you are getting penalized for? Just curious.

[phatchristy]

Originally Posted by mightymoo

I'm wondering what card you are getting 2% back on all purchases?!

I know it is awesome, huh? Of course no annual fee ever. DH is an attorney and I had him read everything over for me to make sure there weren't any catches or anything. It's a Juniper Mastercard. It was one of those offers I was sent in the mail. It just so happened nearly at the same time as we got that, Sam's Club started accepting mastercard. So, I was doubly happy!!!

[phatchristy]

So, it sounds like it's a good idea to use it at least occasionally?

DH told me at least once a month. :

[newbad]

My understanding is that it isn't whether you use it or not, it is whether the account is open or closed. You might want to review with the company whether non-use over a certain amount of time will close the account or not.

I found this article to be interesting/helpful regarding this. http://www.thetaoofmakingmoney.com/2007/04/18/331.html

[coldfeet]

Yeah, it wouldn't be a negative strike against you, but it definitely doesn't help to have a credit card and not use it.

[Tradd]

There are worse things than having a low credit score from NOT using debt! Yes, here I go again with "Dave Ramsey says...":

If the only thing you're concerned about is getting a mortgage in the future, all you have to do is find a lender who does manual underwriting. They just don't look at your credit score, but look at how much you make, your total debt (or lack of), assets, that sort of thing.

[ZanZansMommy]

I guess it depends on the cc company. I've had a cc for 8 yrs now with a $72,000 limit & I haven't used it in 5 yrs. They keep raising my limit; I guess in the hopes that one day I will need it. My cc score is awesome.

[polyhymnia]

I don't think a "regular" consumer card would be closed for non-use, but store cards are all the time (best buy, sears, home depot, etc). Not sure what the distinction is though.

[mightymoo]

Originally Posted by ZanZansMommy

I guess it depends on the cc company. I've had a cc for 8 yrs now with a $72,000 limit & I haven't used it in 5 yrs. They keep raising my limit; I guess in the hopes that one day I will need it. My cc score is awesome.

Yowza! I have several cards we never use and they've never raised our limit.

[cappuccinosmom]

It may be true, but we haven't had a cc in 5 years and it hasn't affected us at all. We did have a mortgage and so had a decent score for a while. Now, we just don't buy anything on credit. Not cars, not furniture. Maybe a house in the future but with enough down that looking at our utilities payments records will be enough (which is what we did last time)

[Glamgurl36]

hm i didn't know that..we are doing the mastercard visa thing too...we get money back for best buy... ill have to start using my visa once a month too

[polyhymnia]

Originally Posted by mightymoo

Yowza! I have several cards we never use and they've never raised our limit.

Man I'd love to know how that works!! They are forever raising my limit. It drives me crazy!!!

[Emmeline II]

Originally Posted by ZanZansMommy

I guess it depends on the cc company. I've had a cc for 8 yrs now with a $72,000 limit & I haven't used it in 5 yrs. They keep raising my limit; I guess in the hopes that one day I will need it. My cc score is awesome.

You can ask them to lower the limit.

[hibana]

Originally Posted by crayolaab

I don't think a "regular" consumer card would be closed for non-use, but store cards are all the time (best buy, sears, home depot, etc). Not sure what the distinction is though.

Yes, it happens with regular cards too. My dh had to deal with this last year... a card account was closed for non-use the same day he tried to use it... it was our "emergency" credit card, and he was going to use it for a small purchase to keep the account active so they wouldn't close it. He called, and explained, but they would not re-open the account.

[SusannahM]

I don't think not using them is going to lower your score. However, part of your score is the average age of accounts (older is better), so having a lot of new cards is going to lower it some. From everything I've read if you've paid everything on time, then it's based on the amount of credit you're using vs what you have available (less used is better, bigger limits are better), average age of accounts, and what type of credit you have (mortgages are better than credit cards).