Roomstore closing, what happens to my credit?

Dr. Frenchenstein

So i bought my bedroom set from the Roomstore years ago, and used their financing deal. so i have a line of credit with no balance now, and i think it's serviced by HSBC. i just saw that they are going bankrupt and closing all stores, so it's not a restructuring or anything. I don't care about not being able to use that line of credit, but i don't want to take the hit on my credit report for that line of credit closing down. Has anyone gone through this? am i just SOL?

bowen

I would say nothing. Generally if you don't use a line of credit or credit card after 6 months it becomes "inactive" and doesn't do beans to your Credit until you use it again.

Dr. Frenchenstein

oh really? i never knew that.

so if i have a zero balance card, and don't use it for 6 months, it stops being counted on my credit report as far as debt/credit ratio?

bowen

Something like that. Always good to just put some gas on it and pay it off when the bill comes.

Credit is wonky. Just don't ever carry a balance, worst idea someone started as "advice to improve credit."

EggyToast

I wouldn't be surprised if you get a note from HSBC that they're changing your card to a different type of credit account.

Dr. Frenchenstein

shit that makes store cards even less appealing...

i'd be fine with that deal from HSBC, as long as they don't use my payments to launder money!!!

bowen

I uh, wouldn't count on that one. Funny you mention it.

Deebaser

A lot of banks just stop reporting information if you don't use the card.
Check your credit report. Are you getting a "Dr. F is good people!" from the issuer every month?

Thundyrkatz

The only think you have to worry about when a line of credit is closed is if you are already carrying a lot of debt, as it makes your ratio of debt to available debt worse.

Say you have 10,000 of available credit on 4 lines at 2,500 each. you had 2 maxed out and 2 at zero for a total debt load of 5,000 for a 50% ratio. then one of your zero credit lines is closed on you. now you have 7,500 in available credit and you owe 5,000 for a 66% load, much worse.

Otherwise, when a company closes a credit line on you, its not a big deal.

Bendery It Like Beckham

Bestbuy had an HSBC card for a long time, if you didn't use it for 6months they closed the account.

Aioua

Heck your credit might actually go up. Store credit cards like that can actually be weighted negatively. (IE, this person couldn't get a real credit card, he had to get store card. Must not be trustworthy.)

Dr. Frenchenstein

really? shit! i only ever get them for the special financing deals, i didn't even think about that.