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      04-30-2019, 11:49 AM   #1
bimmer456
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Keeping your credit score from going down

So BofA was threatening to cancel my credit card if I didn't use it, which would have lowered my credit score. Today was the last day to use it without getting screwed even though I did nothing wrong. With no physical card and thus no security code I couldn't use the card but a stroke of genius told me to add it to Apple Pay. Now credit score is safe. Pretty lame that I would be punished if I didn't charge anything to the card. Seems counterintuitive ya think?
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      04-30-2019, 12:00 PM   #2
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Yup, that’s how credit cards work.
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      04-30-2019, 12:03 PM   #3
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At least they warned you about it. I buy coffee or gas with cards I don't really use anymore. Why not try to get it switched to a better rewards card to make use of it? Or get the limit increased on a card you do use and cancel the old card. Your score will dip but it’ll bounce back.
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      04-30-2019, 12:04 PM   #4
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Just use the card to charge a nominal amount ($10), and pay it off once the bill comes. Even if you do charge a larger amount, should not impact your credit score so long as: (1.) you stay below 50% of your limit; and, (2.) pay more than the minimum amount due.
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      04-30-2019, 12:05 PM   #5
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If you get cash back on your credit card, use it to pay for your mobile bill. Then have the credit card be paid off automatically every month. That way you're earning cash back.
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      04-30-2019, 12:12 PM   #6
bimmer456
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Quote:
Originally Posted by rcracin View Post
At least they warned you about it. I buy coffee or gas with cards I don't really use anymore. Why not try to get it switched to a better rewards card to make use of it? Or get the limit increased on a card you do use and cancel the old card. Your score will dip but it'll bounce back.
Yeah I was thinking of raising the credit limit on another card. I was headed to a branch office but it was closed so I had to come up with another solution. I charged $10 using another app for store credit via Apple Pay. I already have too many accounts with balances but that has a minimal impact on the score if the amounts are small.
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      04-30-2019, 12:14 PM   #7
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Quote:
Originally Posted by Banana Hammock View Post
If you get cash back on your credit card, use it to pay for your mobile bill. Then have the credit card be paid off automatically every month. That way you're earning cash back.
I get some sort of rewards points in the card but it is an older product no longer being issued. My other cards have better cash back or rewards points programs. I can transfer the points from this card to another card with better rewards or cash to points ratio, though. I did that earlier as if they closed the account I would have lost the points, though they could have just transferred them for me.
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      04-30-2019, 12:19 PM   #8
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I set up small monthly payments on the cards I rarely use.
Ie
Netflix on one. $14
Sling tv on another. $25
One for my gym fee

Then you set the Auto Pay on it for Full Balance each month
Throw the card(s) in a safe
This keeps activity on the account without a big hit

Sometimes they don’t close it, but drop your credit limit on the card, which will affect your utilization in a negative way
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      04-30-2019, 12:30 PM   #9
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The "it will lower my credit score" - yes, but there are a lot of variables besides just worrying about anything that will lower my score. I am not looking for a loan right now, I am not keeping a card around and dealing with it just for the score benefit, my score is high enough that if I am looking for a loan a small reduction in my score won't matter, over time it will recover from this small drop.
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      04-30-2019, 12:33 PM   #10
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credit score is such a fuckin sham lol.

like my credit score just dipped 50 pointd because I charged like 8k on my Credti card for rewards.

salary+liquid a majority of any credit approval process.
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      04-30-2019, 12:33 PM   #11
bimmer456
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Quote:
Originally Posted by Pauldunlop13 View Post
I set up small monthly payments on the cards I rarely use.
Ie
Netflix on one. $14
Sling tv on another. $25
One for my gym fee

Then you set the Auto Pay on it for Full Balance each month
Throw the card(s) in a safe
This keeps activity on the account without a big hit

Sometimes they don't close it, but drop your credit limit on the card, which will affect your utilization in a negative way
I think they may have lowered it on this card but raised it on my other cards so my utilization stayed the same.
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      04-30-2019, 12:35 PM   #12
bimmer456
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Quote:
Originally Posted by G35POPPEDMYCHERRY View Post
credit score is such a fuckin sham lol.

like my credit score just dipped 50 pointd because I charged like 8k on my Credti card for rewards.

salary+liquid a majority of any credit approval process.
I think I lost 15 points because I paid my property tax on a card to get 5% back which was more than the fee the county charged me to use a credit card. Not a biggie as I'm still in green territory. I knew I would be fine before charging the card.
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      04-30-2019, 12:36 PM   #13
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Quote:
Originally Posted by David70 View Post
The "it will lower my credit score" - yes, but there are a lot of variables besides just worrying about anything that will lower my score. I am not looking for a loan right now, I am not keeping a card around and dealing with it just for the score benefit, my score is high enough that if I am looking for a loan a small reduction in my score won't matter, over time it will recover from this small drop.
I like to have some buffer so my credit score can take a hit and still be fine. Closing the account would have taken away some buffer especially after paying property tax with a credit card earlier.
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      04-30-2019, 12:55 PM   #14
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Quote:
Originally Posted by bimmer456 View Post
So BofA was threatening to cancel my credit card if I didn't use it, which would have lowered my credit score. Today was the last day to use it without getting screwed even though I did nothing wrong. With no physical card and thus no security code I couldn't use the card but a stroke of genius told me to add it to Apple Pay. Now credit score is safe. Pretty lame that I would be punished if I didn't charge anything to the card. Seems counterintuitive ya think?
It cost banks to maintain your account, mail statements, and issue cards... Your account does not generate any income so from the business perspective they don't want a client like you. Not sure why you are surprised.
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      04-30-2019, 12:55 PM   #15
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Purchased my forever house and I hope to never get a loan again...so my credit score can go to hell for all I care.

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      04-30-2019, 12:58 PM   #16
bimmer456
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Quote:
Originally Posted by ShakyDog View Post
Purchased my forever house and I hope to never get a loan again...so my credit score can go to hell for all I care.

Steve
Lol. It's nice to have a heloc though. I'm getting mine refinanced as the variable rate is too high. Will be getting a much lower one soon.
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      04-30-2019, 01:07 PM   #17
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Quote:
Originally Posted by bimmer456 View Post
So BofA was threatening to cancel my credit card if I didn't use it, which would have lowered my credit score. Today was the last day to use it without getting screwed even though I did nothing wrong. With no physical card and thus no security code I couldn't use the card but a stroke of genius told me to add it to Apple Pay. Now credit score is safe. Pretty lame that I would be punished if I didn't charge anything to the card. Seems counterintuitive ya think?
That happened to me but I donít remember my credit score dropping. I didnít get a warning. Citi just said they were closing the account due to lack of use. And I hadnít used it for over two years. Oddly, they gave me an offer for a new card and I enrolled, getting a higher limit than before lol....my credit is in the 800s.
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      04-30-2019, 01:11 PM   #18
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Quote:
Originally Posted by ShakyDog View Post
Purchased my forever house and I hope to never get a loan again...so my credit score can go to hell for all I care.

Steve
One can always hope:
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      04-30-2019, 01:19 PM   #19
bimmer456
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Quote:
Originally Posted by c1pher View Post
Quote:
Originally Posted by bimmer456 View Post
So BofA was threatening to cancel my credit card if I didn't use it, which would have lowered my credit score. Today was the last day to use it without getting screwed even though I did nothing wrong. With no physical card and thus no security code I couldn't use the card but a stroke of genius told me to add it to Apple Pay. Now credit score is safe. Pretty lame that I would be punished if I didn't charge anything to the card. Seems counterintuitive ya think?
That happened to me but I don't remember my credit score dropping. I didn't get a warning. Citi just said they were closing the account due to lack of use. And I hadn't used it for over two years. Oddly, they gave me an offer for a new card and I enrolled, getting a higher limit than before lol....my credit is in the 800s.
Yes I have 800s as well. Not sure if they would have just raised my credit limit on the other accounts but decided to keep it open for now since I'm refinancing and less activity is better. It could be with your new card it kept your utilization low so your score wasn't affected negatively.
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      04-30-2019, 01:25 PM   #20
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Quote:
Originally Posted by bimmer456 View Post
So BofA was threatening to cancel my credit card if I didn't use it, which would have lowered my credit score. Today was the last day to use it without getting screwed even though I did nothing wrong. With no physical card and thus no security code I couldn't use the card but a stroke of genius told me to add it to Apple Pay. Now credit score is safe. Pretty lame that I would be punished if I didn't charge anything to the card. Seems counterintuitive ya think?
AMEX just cancelled one of my cards, even though I did use it two days before they cancelled it because I got the email.

They went ahead and cancelled because the charge posted the day they planned on closing the account. They wanted a $40 fee to reopen so I could keep my ~$100 in reward points.

So I told them to pound sand, paid off the charge, and left it closed.

I didn't realize they cancelled it until it showed up on my credit score as the account closing.

It only dropped my score 3 points, which is why I told them to pound sand. I've had a Capital One card I haven't used in probably 5 years and they've never threatened to close it.
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      04-30-2019, 01:51 PM   #21
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I'm kind of lucky. I've got 2 credit cards....1 which I have small amount stuff automatically deducted and I pay it off each month, and one for work that is in my name with a pretty high limit.

The one for work gets used frequently and they pay it off each month.

My score is also in the mid 800's.
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      04-30-2019, 01:55 PM   #22
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Carrying a balance is better than never using it. No reason to avoid using it if you can pay it off. Using the card up to just over half the limit will not affect your score adversely, over that and it becomes counter productive.

Use it for gas. Pay off everything but $5 every month. Watch your score go up.
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