# Credit Report Question: Credit Cards **URL:** \ **Category:** Factual Questions\ **Created:** [October 19, 2005, 9:01pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978 "2005-10-19T21:01:50Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![randomlyblanks](https://avatars.discourse-cdn.com/v4/letter/r/71c47a/32.png) [@randomlyblanks](https://boards.straightdope.com/u/randomlyblanks)\ **Post date:** [October 19, 2005, 9:01pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/1 "2005-10-19T21:01:50Z")
I was just looking over my free credit report. I have one credit card that I carry and use. My report, however, shows 3 open credit cards. One is the one I use. One is another Citi card that I applied for at the same time as the other, received, and cut up without activating. The other is a Capital One card that I never activated and didn’t know existed; it is about a year older than the other two. Is it a problem to have two open accounts on my report that I never actually use? I am not sure how I would go about having the two accounts removed from my report. I suppose the other Citi card is not a problem because it also shows a credit limit and is in good standing (because I never have actually used it or even activated the card). The Capital One card, of course, shows a credit limit of $0. Would it be a good idea to call Capital One with the account number from my reports and have the account closed? How long will it take to fall off my report if I do close it? Even then, will the other Citi account eventually close automatically if I never use the card for that account–it’d be hard to actually use the card seeing as it is no doubt in a million pieces by now. Thanks! ---
**Author:** ![D\_Odds](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/d_odds/32/2882_2.png) [@D\_Odds](https://boards.straightdope.com/u/D_Odds)\ **Post date:** [October 19, 2005, 9:27pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/2 "2005-10-19T21:27:01Z")
Contact the issuers. Have them close the accounts AND notify the credit ratings bureaus. Follow up in a few months to ensure they are off your credit rating. ---
**Author:** ![fluiddruid](https://avatars.discourse-cdn.com/v4/letter/f/c2a13f/32.png) [@fluiddruid](https://boards.straightdope.com/u/fluiddruid)\ **Post date:** [October 19, 2005, 9:38pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/3 "2005-10-19T21:38:14Z")
Keep in mind that cancelling accounts that are in good standing will hurt your credit score by decreasing the overall amount of credit that you have available, as well as (if you have any balances on your other card) increasing the overall utilization of credit as well. In terms of a card you never applied for – well, I’d be concerned about that, and Cap1 is terrible, so I’d probably cancel that anyway. If the other one doesn’t have any fees associated with it, I’d keep it if I were you. Use it for one purchase a month and pay it all off, and it will increase your rating. ---
**Author:** ![furt](https://avatars.discourse-cdn.com/v4/letter/f/439d5e/32.png) [@furt](https://boards.straightdope.com/u/furt)\ **Post date:** [October 19, 2005, 9:57pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/4 "2005-10-19T21:57:30Z")
[www.creditboards.com](http://www.creditboards.com) The people there know _everything_. ---
**Author:** ![Carol\_the\_Impaler](https://avatars.discourse-cdn.com/v4/letter/c/6a8cbe/32.png) [@Carol\_the\_Impaler](https://boards.straightdope.com/u/Carol_the_Impaler)\ **Post date:** [October 19, 2005, 10:24pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/5 "2005-10-19T22:24:58Z")
I’ll just take this opportunity to point out that if you apply for a card and are approved (IOW you get the card in the mail) it _is_ active and _will_ be reported on your credit report. I know of no companies (although I admit I could be wrong) that send you a card and wait for you to activate it in order for it to be open and reportable. Don’t confuse those “You must call this 1-800 number to activate your card” stickers that come on your card for anything more than what they are: a security measure. The company wants to make sure your card hasn’t been stolen and will place a security block on it til you call, but it is an open account, nonetheless. Also, cutting up a card does not close the account. You must contact the card issuer to close an account. If you contact Citibank to close the account, make sure you tell the rep to code the closure as “per consumer request”. Regarding the Capital One card, you can contact them to let them know they have an open account for you in error and to close it and to remove that entry from your report in its entirety. If it’s not an error (and they have to prove it’s not) then you should still request it closed at consumer request. Once you make the request to Capital One they have 30 days to take any action on it. If they don’t (and “any action” includes sending you a letter confirming your request, mind you) they are required to remove the entry from your credit report. ---
**Author:** ![aamco](https://avatars.discourse-cdn.com/v4/letter/a/f19dbf/32.png) [@aamco](https://boards.straightdope.com/u/aamco)\ **Post date:** [October 19, 2005, 11:24pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/6 "2005-10-19T23:24:24Z")
> [@fluiddruid](#): > > cancelling accounts that are in good standing will hurt your credit score by decreasing the overall amount of credit that you have available I have been told that extraneous credit cards hurt your ability to get loans because they represent credit that you “already” have (and hence represent a potential liability). ---
**Author:** ![jsmith](https://avatars.discourse-cdn.com/v4/letter/j/df705f/32.png) [@jsmith](https://boards.straightdope.com/u/jsmith)\ **Post date:** [October 20, 2005, 12:07am UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/7 "2005-10-20T00:07:56Z")
> [@aamco](#): > > I have been told that extraneous credit cards hurt your ability to get loans because they represent credit that you “already” have (and hence represent a potential liability). That could be true. Different lenders have different guidelines so it is difficult to give you a firm answer. Plus, the higher your credit score, the less likely the lender will care about your extraneous credit cards. Your credit score doesn’t really take into account if you have too much credit compared to your income. Your lender loaning you money for a house will care. They will make sure you have sufficient funds to meet all your credit obligations. Since loans are usually for more than credit cards and usually secure some sort of property they are more careful about loaning their money out. The trick is to balance it out. ---
**Author:** ![furt](https://avatars.discourse-cdn.com/v4/letter/f/439d5e/32.png) [@furt](https://boards.straightdope.com/u/furt)\ **Post date:** [October 20, 2005, 5:47pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/8 "2005-10-20T17:47:03Z")
> [@aamco](#): > > I have been told that extraneous credit cards hurt your ability to get loans because they represent credit that you “already” have (and hence represent a potential liability). Untrue. Unused credit almost always works in your favor. ---
**Author:** ![Giles](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/giles/32/60_2.png) [@Giles](https://boards.straightdope.com/u/Giles)\ **Post date:** [October 20, 2005, 5:56pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/9 "2005-10-20T17:56:29Z")
> [@furt](#): > > Untrue. Unused credit almost always works in your favor. Logically, this would make sense. If you have $X,000 in unused credit, then presumably you are living witin your means, and don’t need to call on that extra credit. Perhaps you got that extra credit card because it came with free coffee mug, perhaps you’re saving it you use for some special purpose. But, as they say, lenders like giving their money to people who don’t really need it, because the people who need it are less likely to be able to repay it. ---
**Author:** ![Gfactor](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@Gfactor](https://boards.straightdope.com/u/Gfactor)\ **Post date:** [October 20, 2005, 6:10pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/10 "2005-10-20T18:10:06Z")
This is a pretty good place to start in figuring out how credit scores work. [Understanding Your Credit Score](http://www.myfico.com/Downloads/Files/myFICO_uycs%20booklet.pdf) (pdf) Generally, having a few credit accounts with no derogatory indications is better than having only one. > [@](#): > > Open accounts spells available, potential debt, so better close them, runs the legend. But experts agree that most creditors want to see at least two or three pieces of active credit to prove you can manage debt responsibly. > **[Lifestyle - Smart Spending & Frugal Tips | Bankrate.com](https://www.bankrate.com/lifestyle/?thisponsor=score)** > > From grocery store tips to store deals and celebrity net worth, learn how to live the frugal, fun lifestyle. ---
**Author:** ![Mr.Slant](https://avatars.discourse-cdn.com/v4/letter/m/c57346/32.png) [@Mr.Slant](https://boards.straightdope.com/u/Mr.Slant)\ **Post date:** [October 20, 2005, 6:14pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/11 "2005-10-20T18:14:23Z")
> [@furt](#): > > Untrue. Unused credit almost always works in your favor. The only times I’ve ever heard of lenders bitching at consumers for unused credit were in mortgage situations. PS- Where the heck is Philster when ya’ need 'im? ---
**Author:** ![Gfactor](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@Gfactor](https://boards.straightdope.com/u/Gfactor)\ **Post date:** [October 20, 2005, 6:44pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/12 "2005-10-20T18:44:10Z")
> [@Mr. Slant](#): > > The only times I’ve ever heard of lenders bitching at consumers for unused credit were in mortgage situations. > PS- Where the heck is Philster when ya’ need 'im? That used to be a consideration. I’m in the mortgage business and I’m not familiar with any underwriting guidelines that consider unused credit. They look at the FICO score, mortgage history, and ratios mostly. But it wasn’t always so: > [@](#): > > Thus, in the new credit scoring system, having several credit cards with low balances in relation total credit limits results in a more favorable rating than having one credit card with a high balance. This is true even if a borrower owes exactly the same amount of money. The irony here is that ten years ago exactly the opposite case was preferred by lenders. **Until the 1980s, lenders would worry that a borrower with high unused credit limits would run up their credit cards right after buying a house and have too much debt. Many mortgage lenders would require borrowers to close credit cards with high credit limits prior to closing on their mortgage.** (Emphasis added). [http://mortgagealmanac.com/articles/98-creditscoring.html](http://mortgagealmanac.com/articles/98-creditscoring.html) ---
**Author:** ![nivlac](https://avatars.discourse-cdn.com/v4/letter/n/3bc359/32.png) [@nivlac](https://boards.straightdope.com/u/nivlac)\ **Post date:** [October 20, 2005, 7:42pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/13 "2005-10-20T19:42:35Z")
I heard this from someone whose job is developing and maintaining the math models and programs that figure out the credit scores. He said that the #1 thing that impacts your credit score is the number of credit inquiries you get. Every time you apply for some credit (like another credit card or a loan), your credit score will ge dinged. Having unused credit cards is not the big factor. ---
**Author:** ![Gfactor](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@Gfactor](https://boards.straightdope.com/u/Gfactor)\ **Post date:** [October 20, 2005, 7:50pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/14 "2005-10-20T19:50:33Z")
> [@nivlac](#): > > I heard this from someone whose job is developing and maintaining the math models and programs that figure out the credit scores. He said that the #1 thing that impacts your credit score is the number of credit inquiries you get. Every time you apply for some credit (like another credit card or a loan), your credit score will ge dinged. Having unused credit cards is not the big factor. Not according to Fair Isaac, the creator of the current FICO scoring model. They say “Inquiries don’t affect scores that much.” [http://www.myfico.com/Downloads/Files/myFICO\_uycs%20booklet.pdf](http://www.myfico.com/Downloads/Files/myFICO_uycs%20booklet.pdf) at 14. Inquiries are part of “New Credit” which only accounts for 10% of your score. [http://www.myfico.com/CreditEducation/CreditInquiries.aspx?fire=5](http://www.myfico.com/CreditEducation/CreditInquiries.aspx?fire=5) ---
**Author:** ![SusanStoHelit](https://avatars.discourse-cdn.com/v4/letter/s/7ab992/32.png) [@SusanStoHelit](https://boards.straightdope.com/u/SusanStoHelit)\ **Post date:** [October 20, 2005, 8:15pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/15 "2005-10-20T20:15:15Z")
> [@Gfactor](#): > > Not according to Fair Isaac, the creator of the current FICO scoring model. They say “Inquiries don’t affect scores that much.” [http://www.myfico.com/Downloads/Files/myFICO\_uycs%20booklet.pdf](http://www.myfico.com/Downloads/Files/myFICO_uycs%20booklet.pdf) at 14. > > Inquiries are part of “New Credit” which only accounts for 10% of your score. > > [http://www.myfico.com/CreditEducation/CreditInquiries.aspx?fire=5](http://www.myfico.com/CreditEducation/CreditInquiries.aspx?fire=5) I’m not arguing your cite, but my boss had exactly one bit of activity on her credit report in the last three months- an inquiry- and her credit score dropped nearly 40 points. How can that happen? ---
**Author:** ![Gfactor](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@Gfactor](https://boards.straightdope.com/u/Gfactor)\ **Post date:** [October 20, 2005, 8:32pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/16 "2005-10-20T20:32:23Z")
> [@SusanStoHelit](#): > > I’m not arguing your cite, but my boss had exactly one bit of activity on her credit report in the last three months- an inquiry- and her credit score dropped nearly 40 points. How can that happen? There is virtually never “a single bit of activity” (time itself is a factor in credit scoring), but I won’t quibble with you about that. There are many questions that I would need to ask in order to make an educated guess about the cause of a 40 point drop. For instance: 1. What was the score before and after the inquiry? 2. Does the boss have an extensive credit history? 3. What do the reason codes say about the score? 4. Are there any public records that might have popped up? 5. How many tradelines on the report? 6. Has anything changed in any of them? When I get a question like this, I usually sit down and go over both reports (before and after) line by line, noting any changes. Very often I can find some change in the way a creditor reports an item, which accounts for the change. OTOH, nobody but Fair Isaac actually knows the actual scoring model. They could be lying. Ya never know. Taking them at their word, here is what they say about the matter: > [@](#): > > For most people, one additional credit inquiry will take less than five points off their FICO score. However, inquiries can have a greater impact if you have few accounts or a short credit history. Large numbers of inquiries also mean greater risk: People with six inquiries or more on their credit reports are eight times more likely to declare bankruptcy than people with no inquiries on their reports. [http://www.myfico.com/Downloads/Files/myFICO\_uycs%20booklet.pdf](http://www.myfico.com/Downloads/Files/myFICO_uycs%20booklet.pdf) ---
**Author:** ![SusanStoHelit](https://avatars.discourse-cdn.com/v4/letter/s/7ab992/32.png) [@SusanStoHelit](https://boards.straightdope.com/u/SusanStoHelit)\ **Post date:** [October 20, 2005, 9:33pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/17 "2005-10-20T21:33:59Z")
> [@Gfactor](#): > > There is virtually never “a single bit of activity” (time itself is a factor in credit scoring), but I won’t quibble with you about that. > > There are many questions that I would need to ask in order to make an educated guess about the cause of a 40 point drop. For instance: > > 1. What was the score before and after the inquiry? > 2. Does the boss have an extensive credit history? > 3. What do the reason codes say about the score? > 4. Are there any public records that might have popped up? > 5. How many tradelines on the report? > 6. Has anything changed in any of them? She does have an extensive history, her score dropped from mid 720s to mid 680s, there were no public records, I don’t know how many tradelines, but she has a few credit cards (some with balances), two auto loans, and no mortgage or educational loans open right now. She pays on time or a little ahead and she hasn’t payed off or closed anything since she last looked. ---
**Author:** ![groman](https://avatars.discourse-cdn.com/v4/letter/g/73ab20/32.png) [@groman](https://boards.straightdope.com/u/groman)\ **Post date:** [October 20, 2005, 10:33pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/18 "2005-10-20T22:33:36Z")
> [@SusanStoHelit](#): > > She does have an extensive history, her score dropped from mid 720s to mid 680s, there were no public records, I don’t know how many tradelines, but she has a few credit cards (some with balances), two auto loans, and no mortgage or educational loans open right now. She pays on time or a little ahead and she hasn’t payed off or closed anything since she last looked. This could be because an old account she closed awhile ago finally went off the record (2 years, is it?) ---
**Author:** ![SusanStoHelit](https://avatars.discourse-cdn.com/v4/letter/s/7ab992/32.png) [@SusanStoHelit](https://boards.straightdope.com/u/SusanStoHelit)\ **Post date:** [October 20, 2005, 11:39pm UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/19 "2005-10-20T23:39:48Z")
> [@groman](#): > > This could be because an old account she closed awhile ago finally went off the record (2 years, is it?) Ah, I hadn’t thought of that. I work with some credit reports at my job (rental property management), and I’ll admit it’s interesting to see what all can bring down your score. One thing I’ve noticed: if a parent’s score is good, their child’s score can be good or bad. However, if a parent’s score is bad, their child’s score will always be bad also. Finance education should be a part of every HS curriculum. ---
**Author:** ![jsmith](https://avatars.discourse-cdn.com/v4/letter/j/df705f/32.png) [@jsmith](https://boards.straightdope.com/u/jsmith)\ **Post date:** [October 21, 2005, 6:30am UTC](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978/20 "2005-10-21T06:30:39Z")
> [@](#): > > Plus, there’s a common misunderstanding that having too much available credit will hurt your score when you’re applying for a loan. While some, though increasingly few, lenders still do look at available credit, it won’t hurt your score, which is set by rating service Fair Isaac From: [http://wwwsmartmoney.com/mag/index.cfm?story=ask-october03](http://wwwsmartmoney.com/mag/index.cfm?story=ask-october03) That should sum it up. Unfortuantly, my first house I bought 5 years ago the lender did look at my available credit. I was required to close a credit card I had just opened a few months earlier. I had a low credit score, due to lack of credit, and I was applying for a FHA (federally guaranteed) loan. I would imagine in my case it made sense since my credit score was already low (therefore closing the account probably would have minimal impact) and they did not want me borrowing any part of my down payment, directly or indirectly (by paying for everyday expenses on my new credit card to save money for a down payment). I have also helped program credit decisioning software used by many banks and credit unions for several companies. The last company I consulted at had at least 50 clients a few years back. The software considered more than just a FICO score like how much they want to borrow, how long they have been at their job, income, how long they have been a customer, etc. Amount of available credit was a parameter that was used by several clients. To some clients it was more important than others. I think it is hard to have a firm answer in this matter. [Next page](https://boards.straightdope.com/t/credit-report-question-credit-cards/326978.md?page=2)