I was told my credit score went down because I hadn’t used my credit card in a while and it had a $0.00 balance and because of that they couldn’t report any credit. It went down 34 points because of it, is that normal? I called and asked if they could see anything else that’d affect it and there was nothing so they said that was probably why, is that true?
Credit score went down and unsure why
byu/Dynogummy inpersonalfinance
Posted by Dynogummy
13 Comments
Who were you talking to?
Mine goes up and down every month for no reason. It will eventually go back up. It doesn’t really matter as long as you’re not trying to get credit/loan sometime soon.
Did they lower your credit limit on that card? Often if you don’t use it for a while, they’ll lower your credit limit, which can affect your credit score. On credit cards I don’t use anymore I generally use them once a year, or when they send a letter saying they’re going to close the account if it isn’t used
Anything can affect the credit algorithm. Is the credit card the only credit on your account. If so its lack of use could lowered your credit score.
If you don’t use it, you lose it. If you use it, you lose it. It is how it works……..
Ahh ya I meant my credit score went down, but then they raised my credit limit on the card. Sorry for the confusion haha
I believe the bureaus don’t understand their own algorithms for creating a score.
Yes that’s normal. Credit cards are open ended credit and that plays a role in your credit scores. If a card is closed out then your open ended credit is lowered thus lowering your score. I have several cards I don’t regularly use so I make it a point to a make a purchase on them once or twice a year to keep the account active.
Depends, if you have 5 credit cards and don’t use one of them that’s fine, if you only have one account and don’t use it then yeah that’s an issue
Credit scores fluctuate. Stop worrying about it and read this: https://old.reddit.com/r/personalfinance/comments/11jzhcz/im_teaching_financial_literacy_and_the_basics_of/jb51g23/
Yes, there is a temporary penalty while all your cards report $0 balance.
Use 1 card for a small purchase and wait for the statement. You should see the scores go back up. I wouldn’t stress it too much, but you want to use your cards every few months so they don’t get closed for inactivity.
DC 6. My* 7thiy
Dc,ugh. 6 pop pi
Factors that can drop your score by large amounts:
Hard inquiries (when planning to open an account),
Closing account(s),
Missed payment(s),
Credit utilization above 30%,
Debt in collections
Check your credit report to make sure everything is accurate there. Put everything on autopay to avoid late payments. Pay full statement balance each month. Make small charges on each card you don’t use at least once a year to avoid the bank closing a card and remember that store cards are credit cards too.