Target Red Card

[I Is Broke]

I was approved for Target Red Card about 9 months after discharge. I've used the card 2-3 times. I went to use it the other day and the card was cancelled. I called Customer Service and they told me it was cancelled because of lack of use.

Will this hurt my credit score?

[Logan]

I just had a card canceled for the same reason. I wouldn't worry about your credit score as long as you have at least 3 credit lines, keep low balances and pay on time.

Logan

[Flamingo]

What you experienced is happening quite frequently to those with both good and bad credit. It will show on your credit reports as "closed by lender" and that may have a slight impact but the BK on your credit reports hurts you way more that just a closed by lender account with no late payments.

[Logan]

What you experienced is happening quite frequently to those with both good and bad credit. It will show on your credit reports as "closed by lender" and that may have a slight impact but the BK on your credit reports hurts you way more that just a closed by lender account with no late payments.

Flamingo,

Juniper closed my account for lack of use and my credit report says closed by consumer.

This is from my report--all 3 bureaus say the same thing.

Equifax [Comment: Account closed at consumer's request]
Experian [Comment: Closed - Account closed at consumer's request]
TransUnion [Comment: Closed - Account closed by consumer]

I did NOT request this.

Logan

[CCsAreEvil]

Having accounts get closed will always lower your score, but it shouldn't be by much. How high was your limit on that card? If it was around $500, it should not be a big deal. The main reason the score will be lower is because now your overall utilization has gone up by the fact that your total available credit has gone down.

So, when was the last time you used the card? Anyways, creditors do have the power to close lines of credit whenever they feel like it.

[Logan]

Having accounts get closed will always lower your score, but it shouldn't be by much. How high was your limit on that card? If it was around $500, it should not be a big deal. The main reason the score will be lower is because now your overall utilization has gone up by the fact that your total available credit has gone down.

So, when was the last time you used the card? Anyways, creditors do have the power to close lines of credit whenever they feel like it.

Will always lower your score? What if you're barely using your credit cards?

Logan

[CCsAreEvil]

Will always lower your score? What if you're barely using your credit cards?

Logan

I don't think that matters. I haven't read up on FICO lately, but I'm sure it hasn't changed much. As far as "revolving" credit, the FICO score has no idea what your total overall debt load was..... say, 2 months ago. If you were to pull your official FICO score today, it would take the data which shows what you owe total (add up all the reported balances owed on all credit cards). Of course, this information is usually just posted once a month by each creditor (it's usually your "balance" owed from your most recent CC statement). Then, they divide that by your "total" available credit. This is your debt to total available credit percentage (utilization).

So, if you have an account closed, your total overall available credit will be lower, hence upping your utilization. Like I said, in most cases, it just lowers your score ever so slightly. It's really nothing to get excited about.

[Logan]

I don't think that matters. I haven't read up on FICO lately, but I'm sure it hasn't changed much. As far as "revolving" credit, the FICO score has no idea what your total overall debt load was..... say, 2 months ago. If you were to pull your official FICO score today, it would take the data which shows what you owe total (add up all the reported balances owed on all credit cards). Of course, this information is usually just posted once a month by each creditor (it's usually your "balance" owed from your most recent CC statement). Then, they divide that by your "total" available credit. This is your debt to total available credit percentage (utilization).

So, if you have an account closed, your total overall available credit will be lower, hence upping your utilization. Like I said, in most cases, it just lowers your score ever so slightly. It's really nothing to get excited about.

Personally I think we get to wrapped around what's best for our credit scores. It's pretty simple--just pay your bills and if you've been through BK why do you even carry any balances? You obviously didn't learn from the 1st time.

Logan