Question
Credit Report - Card Company Closed My Account?
I have a Target credit card that was closed by the company due to inactivity. I had no balance on the account and paid off $6k over 4 years with no late payments. My credit line was $10k. How will all this screw up my credit score? I also had a Macy's card closed due to inactivity (no balance, no late payments). Is my FICO score totally in shambles now? Currently, I only have one credit card (no balance, no late payments, $20k credit line). Is my good history on these closed account wiped out because the company closed them (without my knowledge I might add)?
3 weeks ago - 5 answers
Best Answer
Chosen by Asker
Your FICO score is not in shambles unless there is some other reason, unrelated to this question, for it to be in shambles. You FICO credit score may even have increased as a result of the accounts be closed. Closing an account does not wipe out the credit history (good or bad). The history says for at least 7 years after the last activity on the account. They only situation in which you might need to be concerned is if you no longer have any accounts open that are more than a few years old, or no longer have any accounts open at all. Having only very young accounts or no accounts can hurt your score a very little bit. If you have any account that is still open and is still older than the accounts that were closed, then even this very minor harm will not happen.
3 weeks ago
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Other Answers
The closure only hurt you IF: It was your oldest account. Length of credit history is 15% of your fico. All you need is one card in long standing. Your score might also take a hit because the overall available limits on all your cards has been reduced - not a really big deal. You may be better off with a smaller amount of overall available balance. Too much can also hurt you in case you go for a mortgage. 20K in available credit in just that one card may scare off any future mortgage lender. (maybe). /
by Judy- 3 weeks ago
were either of these closed cards your oldest accounts? If not, it will have very little impact on your score since you don't carry a balance. Even if they are your oldest accounts, it really will not cause any issues until it rolls off your credit report after 10 years. People fear closing the oldest account when it doesn't have an enormous impact as long as you have other accounts with decent age.
by timothy p- 3 weeks ago
The reason why your Target & Macy's because they were not making any money off you . Target & Macy's will put this on your credit report as a " Unfavorable Account" or " Inactivity Account" it will also say account closed by the issuer . Credit Card issuers are really being belligerent and bold about what they want from the consumer . I've known other people who had their credit cards closed for inactivity or the paid the balance in full each month . Your score should go down only 20-30 points , if you have no balances it should not affect your score that much especially if you paid your accounts on time . If you have a great credit score and a excellent payment history apply for a american express . It has no limit but you must pay the balance off each month . There is no finance rates either . but you pay a annual fee each year . Charge a little on the 20K credit card lets say $200 and pay $150 let the balance carry over for a month then pay that off . Do this for a about 6 months and your credit score should improve from the closed account . Believe or not a co-worker applied for a loan and was declined because she didn't have balances and her credit card accounts I was declined for a loan because I had too many balances . Go figure There is no telling what the credit card issuers are thinking these days . On a positive note I admire you for your financial discipline and managing your lines of credit . Well Done !!
by His Majesty- 3 weeks ago
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments - creditreport.imess.net
by Clay- 3 weeks ago