On The Credit Line, a weekly radio show hosted by Adam Levin, Credit.com’s chairman and co-founder, caller Maurice from Surprise, Ariz., asked if a drastic decrease in credit card use due to layoff, retirement, etc., would negatively affect his credit score.
The answer is no. Using your card less frequently does not change your credit score. However, if there’s no balance and the card is completely inactive for a period of time, the issuing bank could choose to close your account due to inactivity. This will negatively affect your credit score because it will lower your available credit—which is one of the components of a credit score. Adam advises to pull out the card and run up a small balance on things you’ve already planned to purchase and pay it off every month.
Check out these links to find out more on how your credit card use affects your credit score:
- Can paying your high balance credit card in full hurt your credit score?
- What you should not do if you have a large amount of available credit.
- Will getting turned down for credit negatively affect your score?
If you have questions, tune in to The Credit Line on Los Angeles’ KFWB 980 AM every Saturday at 9 a.m. PST/Noon EST and call in at 888-539-2980 or email the show any time at email@example.com. Listen to the Credit Line for more debt and credit advice.
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Image: Thomas Hawk, via Flickr.com