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nonies

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How can my credit score go down by SPiegel closing a credit card I did not know I had??????????????
I did not know I had a Spiegel credit card. I may have used it once years ago and never used it since nor do I have possession of a credit card in Spiegel's name. WHY would my credit score go down because THEY chose to close the account for non-use (I'd guess)?????? Doesn't seem fair at all. My credit is FANTASTIC. NEVER pay a bill late!!

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It went down because you lost that line of credit, and the associated history.  Yes, they will close cards if not used.  You can always contact them and tell them you forgot you had it and would like to re-open it.  Then use it once or twice a year to keep it alive.  To learn more about credit scores and how they are calculated, I recommend www.credit.about.com.  Best of luck!

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By closing the account, your aggregate utilization percentage may have gone up which lowered your scoes.  What is meant by this, if you look at the sum total of all credit lines in proportion to balances, you would have had a lower percentage due to the fact that you had no balance on the account.  When you close that account, and have balances on other accounts, the utilization percentage goes up becuase you've removed a credit line with 100% available.  So it changes your averages.

Making payments on time is only 35% of your FICO score, 30% is also your balance to limit percentages (utilization).  So you may think you have "perfect credit", but if you carry balances over 30% of the credit limits on credit cards, you have lower credit scores than if you paid your credit cards off every month before the statement date (not the due date).

If you need more help understanding your credit, I can be reached for a consultation and report review at jason@rapidrescorecredit.com

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