Author Topic: Dormant Credit Card, How Often Should You Use Each CC (Read 14562 times)

txtmax4 · « **on:** April 18, 2012, 01:11:39 PM »

There is a notion out there regarding credit cards that are dormant, i.e. not used for a prolonged period of time, that banks will close down such accounts.
Obviously one will always want to use the card with the best rewards/perks, but in the meantime one might have a bunch of cards sitting doing nothing, and that might cause the bank to shut down the account due to inactivity.
I'm trying to figure out if the above notion is true for all banks and how each bank reacts to dormant accounts.
Do they send a warning letter prior to closing?
Do they reduce the credit limit but don't close down the card altogether?
How much time has to go by with the card being inactive in order for the bank to act upon it?
I'm sure each bank is different about this but, for everyone's benefit here, it would be good for people to post their experience so that we can see if there are any patterns that we should watch out for.

Please post your experience.

SPLP · « **Reply #1 on:** April 18, 2012, 01:34:22 PM »

why don't you start it off with ur info

Mimi K. · « **Reply #2 on:** April 18, 2012, 01:35:49 PM »

I had a few closed on me

NO warning whatsoever I just called once and was told it was closed due to inactivity!!
same with lowering the credit line although that they sent me a letter. I think its every 12 months but now I do every 6
just to be sure!!

GOOD LUCK!!!!

txtmax4 · « **Reply #3 on:** April 18, 2012, 01:39:14 PM »

Quote from: SPLP on April 18, 2012, 01:34:22 PM

why don't you start it off with ur info

I dont have any ifo since I make sure to use them all every so often but, believe me, I'm really not interested, its a big hassle plus loos of rewards, so that's why I'm trying to figure out how much I can slack off..

txtmax4 · « **Reply #4 on:** April 18, 2012, 01:39:40 PM »

Quote from: Mimi K. on April 18, 2012, 01:35:49 PM

I had a few closed on me NO warning whatsoever I just called once and was told it was closed due to inactivity!!
same with lowering the credit line although that they sent me a letter. I think its every 12 months but now I do every 6
just to be sure!!
GOOD LUCK!!!!

Would you please tell us which banks those were?

Mimi K. · « **Reply #5 on:** April 18, 2012, 01:59:14 PM »

Quote from: txtmax4 on April 18, 2012, 01:39:40 PM

Would you please tell us which banks those were?

Sure! barclays and capital one just closed it

and chase lowered it from 3k to a measly $500

I can't tell you details of how often i used them because like you i was chasing rewards on better cards
and I wasn't paying attention

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txtmax4 · « **Reply #6 on:** April 18, 2012, 02:11:41 PM »

Quote from: Mimi K. on April 18, 2012, 01:59:14 PM

Sure! barclays and capital one just closed it and chase lowered it from 3k to a measly $500
I can't tell you details of how often i used them because like you i was chasing rewards on better cards
and I wasn't paying attention

Interesting, I was under the impression that Capital One would be among the most generous about this.
New point of information gained. Thanks!
As a coincidence, I just pulled out my CapOne from the drawer last night to get some activity on it for this exact reason.

Devorah · « **Reply #7 on:** April 18, 2012, 02:13:21 PM »

I've had it happen with store cards - Macy's, Banana Republic.

Shmelly · « **Reply #8 on:** April 18, 2012, 02:15:25 PM »

I have a Capital One card that has been inactive for at least 4 years. The account is still alive.

Quote from: Devorah on April 18, 2012, 02:13:21 PM

I've had it happen with store cards - Macy's, Banana Republic.

I had a Target card which they closed after 1 year and 1 day of no activity. I currently have an Express card which I haven't touched in at least 5 years but is still alive.

Mimi K. · « **Reply #9 on:** April 18, 2012, 02:17:46 PM »

Quote from: Devorah on April 18, 2012, 02:13:21 PM

I've had it happen with store cards - Macy's, Banana Republic.

I have banana republic for 4 years without using it!!

p.s. Capital one lets you reopen it if its within a certain timeframe.
dunno exactly
p.p.s. Maybe it depends on your credit history?!?

txtmax4 · « **Reply #10 on:** April 18, 2012, 02:29:31 PM »

Quote from: Mimi K. on April 18, 2012, 02:17:46 PM

p.s. Capital one lets you reopen it if its within a certain timeframe.

Without a pull?
So did you try reopening?

Quote from: Mimi K. on April 18, 2012, 02:17:46 PM

p.p.s. Maybe it depends on your credit history?!?

Probably not.

Mimi K. · « **Reply #11 on:** April 18, 2012, 02:33:53 PM »

Quote from: txtmax4 on April 18, 2012, 02:29:31 PM

Without a pull?
So did you try reopening?

No pull within timeframe but A)it was a stupid card

B)I don't remember exactly but
I think I was told that I just missed it

Dan · « **Reply #12 on:** April 18, 2012, 03:04:02 PM »

Quote from: txtmax4 on April 18, 2012, 02:29:31 PM

Probably not.

-1. There is no set timeframe, so it must depend on whether they feel like keeping you anyway.

kayef · « **Reply #13 on:** April 18, 2012, 09:59:24 PM »

I had a citi card recently shut down due to inactivity w/o any warning. I also had a discover a few years back which was shut down,don't remember if there was a warning or not.

ae123 · « **Reply #14 on:** April 18, 2012, 10:01:44 PM »

I have an Amex Blue Card and have not used it in about 5 years....still active...

kayef · « **Reply #15 on:** April 18, 2012, 10:04:08 PM »

Quote from: ae123 on April 18, 2012, 10:01:44 PM

I have an Amex Blue Card and have not used it in about 5 years....still active...

did you miss sbs and all other amex deals?

ae123 · « **Reply #16 on:** April 18, 2012, 10:07:17 PM »

I guess so.

txtmax4 · « **Reply #17 on:** April 18, 2012, 10:31:23 PM »

Quote from: Dan on April 18, 2012, 03:04:02 PM

-1. There is no set timeframe, so it must depend on whether they feel like keeping you anyway.

My reasoning is that once they pull up your account for this reason, they will take action regardless of credit history.
OTOH if they are doing a routine checkup on accounts, a poor history combined with some inactivity might trigger them to close down the card with both factors being the cause, while, if the cardholder would have had a better history they wouldn't have closed it at that point.

Dan · « **Reply #18 on:** April 18, 2012, 10:33:43 PM »

I have cards that I haven't used in many many years and yet they don't get shut down. I'm not sure inactivity alone is a reason for shutdown, but it makes for a nice excuse to get you off their books if you are unprofitable or are a risk.

Yeki89 · « **Reply #19 on:** April 18, 2012, 10:43:55 PM »

my wells fargo was lowered after a year of inactivity