Dings to Credit Rating Question

[Unoriginal Name]

I just received a mailing from one of my credit card companies that my credit card was closed due to inactivity. That was my only warning. No warning previous to that.

This poses two problems one I'll get dinged because it had a pretty good credit limit on it so now my debt ratio is higher but I'll also get dinged because of the closing of an account.

How long does a ding from closing an account last? Now they said I can call them to open a whole new account. Would the ding from opening a new account be worth it to restore my available credit that was available to me before the card was closed? How long would this ding last from opening a new account?

[nyisles16]

Re: Dings to Credit Rating Question

You should try to get another card. I know the major thing credit card companies look at is the credit to debit ratio, and if you have credit.

As far as a ding, it can happen within a month time.

[Altimus]

Re: Dings to Credit Rating Question

You should try to get another card. I know the major thing credit card companies look at is the credit to debit ratio, and if you have credit.

As far as a ding, it can happen within a month time.

They also look at how long each account has been open and how many accounts. Too much credit is a bad thing as a lender may think one day you'll snap and live way beyond your means.

You may lose 2-10 points after everything is done and over but it isn't a big deal.

Close account - dinged 2-10 points
Apply - dinged 1-2 points
New account - depending on the credit limit, it should go up but it depends on the CL. If it is more than the previous card than you shouldn't lose anything of your credit score

[p_rushing]

Re: Dings to Credit Rating Question

I have 1 card that I've had since my first year in college. I rarely use it, but I try use it a few times a year just to keep it active. I would just call them and have them open it back up or get a new account with them. Then buy some gas or something from the gas station a few times a year.

[Unoriginal Name]

Re: Dings to Credit Rating Question

They also look at how long each account has been open and how many accounts. Too much credit is a bad thing as a lender may think one day you'll snap and live way beyond your means.

You may lose 2-10 points after everything is done and over but it isn't a big deal.

Close account - dinged 2-10 points
Apply - dinged 1-2 points
New account - depending on the credit limit, it should go up but it depends on the CL. If it is more than the previous card than you shouldn't lose anything of your credit score

The thing that really gets me about this card being closed is that I had since the late 90's so I lost a lot of longevity with this one closing. I should pay and get my credit score that I got earlier in the year just to see how much this affected me. I have excellent credit so this one closing may not affect me much.

[nyisles16]

Re: Dings to Credit Rating Question

I just had a card closed because I never used it, nor did I activate it..

10 points off..

[therizing02]

Re: Dings to Credit Rating Question

All of the above is correct, but if you are applying for a loan/mortgage, creditors like to see that you have at least 4 open lines of credit that you are making on time payments to. I've been told this several times.

While debt to income is always a key factor, you need to have open lines of credit. I would definitely try and get a new card if you don't have a lot open lines.

[nyisles16]

Re: Dings to Credit Rating Question

All of the above is correct, but if you are applying for a loan/mortgage, creditors like to see that you have at least 4 open lines of credit that you are making on time payments to. I've been told this several times.

While debt to income is always a key factor, you need to have open lines of credit. I would definitely try and get a new card if you don't have a lot open lines.

Funny that you mention that - I've heard a little bit differently - that you shouldn't have too much "revolving" credit. I'm not "big" on having several different credit cards (mainly for identity theft issues) open at once. I guess I may need to change that..

[nyisles16]

Re: Dings to Credit Rating Question

Well, I just disputed the "ding" they put on my report.. Basically told them that the credit card I had, which was closed, was never even activated (still have that "call 1-800 # on the top of it).

They have restored the 10 points they took off...

[therizing02]

Re: Dings to Credit Rating Question

Funny that you mention that - I've heard a little bit differently - that you shouldn't have too much "revolving" credit. I'm not "big" on having several different credit cards (mainly for identity theft issues) open at once. I guess I may need to change that..

That's correct. I should have clarified. 4 open lines of of different types of credit. Too much revolving is not good.