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Like, if you have a perfect credit score, could you simply switch 100% over to using cash and have your credit score stay perfect? Or would it lose points because of the inactivity.

4 Thoughts on Can your credit score diminish if you don’t use a card or apply for a loan for an extended amount of time?
  1. Reply
    Sharon F
    November 6, 2011 at 4:47 am

    no, your credit score will not remain perfect

    you will be losing points because there is no activity

    this whole credit score thing is so tricky; you have to know how to balance it and maintain a good score and having no activity doesn’t work

  2. Reply
    toxic tone
    November 6, 2011 at 5:14 am

    The Banks have a system in place known as, ‘behavioural scoring.’ Loan applications are, either, ‘machine’ sanctioned or declined, or, they (such loan apps) go to an Underwriter (to be risk-assessed by a human being instead of a machine, in case of an appeal.) The Underwriter’s decision is final.

  3. Reply
    November 6, 2011 at 6:14 am

    So long as you have open accounts it does not matter if you use them or not. Don’t close them, however. They fico model does not track how you use your cards, just how long ago they were opened, their current balance, and the pay history. It does not track “activity”.

    I’ve seen many people have their credit “hurt” by going 100% cash, not leaving any credit cards open, and eventually having all of their accounts fall off their record, to the point where they essentially have no credit, like an 18 year old just starting out. So leave some accounts open.

  4. Reply
    November 6, 2011 at 6:36 am

    Your score will only be affected if your cards close because of no activity. What you need to do is check with your credit card companies. Ask them if they will close your credit card because of inactivity for certain length of time.

    If they say yes, then I would use that card occasionally. Just so the credit card company won’t close your card.

    If they say no, then don’t worry about it. Your score is mostly based on what type of accounts you have opend, the credit limit, your payment history. Your score is not affected by the most current activity on a card.

    Let’s say one of your accounts became closed, and there was no delinquencies report. This account would not be removed from your credit card until 10 years from the closing date.

    Some of the best credit scores that I have seen were from Seniors that had long credit history (Say a sears card when they first established credit) They may not be using the card recently but that account still shows positive on their credit report.

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