Author Topic: Capital One just canceled my cards for lack of use (Read 3050 times)

Ratherboard · « **on:** July 07, 2019, 01:46:09 PM »

So, Capital One just sent me an email informing me that my card was suspended and would be fully canceled in October for lack of use. This was an old CAP1 card that I've had for 15+ years, but it had a small limit of 10K and I have another CAP1 card with 5K limit.

Honestly, I hardly use these cards as the benefits are weak and the limits are low, therefore my last transaction was in 2014. I called Cap1, escalated to a manager and asked if there was anything I could do to keep the card. (my concern is over losing 10K in available credit and a card with 15 years of credit history, therefore potentially lowering my credit score which is currently at 768)

After speaking to a couple of agents and ultimately the supervisor, I was informed there was nothing I could do and they have the right to close cards for "business decisions" at the company. She agreed that I had always paid my card on time and basically did nothing wrong other than just not using the card. I asked if I could apply for another card and transfer this available credit to another card (I've done this with AMEX before) but she denied that as well. Not sure if they are just trying to eliminate old card types, but this was very strange as I have other cards with other banks that have not been used for 5+ years. Of course, now I will go use them for some random purchases to ensure they stay current.

Has this happened to anyone else? Is there anything I should do? Should I worry about my credit score? Should I apply for another card (with no fees of course) to make up for the loss in available credit?

FIREstache · « **Reply #1 on:** July 07, 2019, 01:51:26 PM »

I have not had this happen, but I have always been aware of the possibility, which is why I still use my oldest (by far) CC despite it being my only card with no cashback rewards. So, I use it regularly for smaller purchases so there's regular activity on it to avoid it being canceled and losing that >20 year credit history.

RWD · « **Reply #2 on:** July 07, 2019, 01:59:34 PM »

CapitalOne closed my credit card last year that I had had with them for 15 years. I had not used it in over 6 years because it had no rewards and a credit limit of only $1k. It's not that big of a deal for your credit score, let it go.

Catbert · « **Reply #3 on:** July 07, 2019, 02:01:20 PM »

I use all of my cards at least once a year in order to prevent this from happening. All banks do this, not just Cap1.

I suggest digging out the rest of your unused cards and use them at least once. Loading money on Amazon is an easy way to show usage. You could load $5 from each card.

firehelp · « **Reply #4 on:** July 07, 2019, 02:05:51 PM »

Quote from: Ratherboard on July 07, 2019, 01:46:09 PM

I called Cap1, escalated to a manager and asked if there was anything I could do to keep the card. (my concern is over losing 10K in available credit and a card with 15 years of credit history, therefore potentially lowering my credit score which is currently at 768)

Has this happened to anyone else? Is there anything I should do? Should I worry about my credit score? Should I apply for another card (with no fees of course) to make up for the loss in available credit?

It happens to lot of people. Your FICO 8 base and bank card scores will not lower drastically because your closed accounts won’t drop off your reports until 10 years from now. A few older FICO models might lower further but not that cannot be recovered.

Without knowing a little more about your credit profile, I am not not sure what you should do.

Capital One is just one credit card issuer. Depending on your profile, opening more cards with other issuers and updating your credit knowledge may be one option. It’s good to have at least 5 cards/revolving accounts and $50K+ combined credit limits.

rantk81 · « **Reply #5 on:** July 07, 2019, 02:33:49 PM »

CapOne never did it to me, but Chase closed a couple of dormant cards.

For now, I set semiannual google calendar reminders to “charge credit cards” so that I use all of my semi-dormant cards to buy $2 Amazon gift card credit (sent to myself).

So far this has worked to keep my Capital One card open, which I really only want to keep for use when traveling internationally.

Syonyk · « **Reply #6 on:** July 08, 2019, 09:57:59 AM »

I've had this happen on "reserve" cards in the past - ones with a large credit line I kept around as springy debt.

My solution has been to spread random subscription services around cards. I'm pretty sure one card has nothing but our newspaper subscription on it ($4/mo for a local weekly paper). It's activity, it's auto-paid in full every month, and it keeps the cards active.

Samuel · « **Reply #7 on:** July 08, 2019, 10:18:02 AM »

Quote from: Syonyk on July 08, 2019, 09:57:59 AM

My solution has been to spread random subscription services around cards. I'm pretty sure one card has nothing but our newspaper subscription on it ($4/mo for a local weekly paper). It's activity, it's auto-paid in full every month, and it keeps the cards active.

This. Single subscription billing + autopay and you don't have to worry about forgetting to use it once a year.

RedmondStash · « **Reply #8 on:** July 08, 2019, 10:23:38 AM »

I've got a card I haven't used in many years, and it hasn't gotten canceled. Maybe it's just as well to get out of that Capital One card if that's their policy, and get into a card whose company won't pull it. You surely don't need that particular card; credit is widely available.

And if you're looking for a new credit card:

https://www.doctorofcredit.com/

Enigma · « **Reply #9 on:** July 08, 2019, 10:25:00 AM »

Cap1 closed one of my cards that I had with them for the same reason. Now I put small automatic purchases on all my cards (Hulu, Netflix, Cell Phone Bill, Water Bill). Also I pay in full automatically so I do not forget anything.

SpareChange · « **Reply #10 on:** July 08, 2019, 10:46:24 AM »

Quote from: Samuel on July 08, 2019, 10:18:02 AM

This. Single subscription billing + autopay and you don't have to worry about forgetting to use it once a year.

Yep. My Cap one card is by far the most important item on my credit report. Will be even more so when my old student loans start dropping off in a few years. The account is over 19 years old. Would hate to lose that, so I just have my electric bill put on it.

bluebelle · « **Reply #11 on:** July 08, 2019, 10:55:17 AM »

Banks are in the business to make money, it costs them money to keep an unused card on the books (processing time, storage etc).

But the decision to cancel a card is made by a computer, it flags dormant accounts...as others have said, use it once a year for some small purchase, bang, not a dormant account, fly under the radar.

Syonyk · « **Reply #12 on:** July 08, 2019, 10:57:53 AM »

Quote from: bluebelle on July 08, 2019, 10:55:17 AM

use it once a year for some small purchase, bang, not a dormant account, fly under the radar.

The problem there is that it's mental clutter to have to remember to do it (even with a reminder alarm). If you just have an auto-renewing subscription on it, it's taken care of.

I try to avoid having to take infrequent actions for financial purposes - I automate as much as I can along these lines.

Put NetFlix or something on it. You'll have to update the expiration date every few years and that's about it.

HBFIRE · « **Reply #13 on:** July 08, 2019, 01:19:34 PM »

An easy way to prevent this is to use amazon reload as someone mentioned above. If you charge C1 for 0.99 or less, they will "balance cancel" the amount at the end of the month, so you don't even have to pay it. I have enough cards that I could actually pay for my amazon prime membership with the free money.

I routinely do this every now and, but not every month.

SwitchActiveDWG · « **Reply #14 on:** July 08, 2019, 01:27:30 PM »

I use all of my cards once every 6 months. The only company that has threatened to cancel my card is Barclay.

Blue Skies · « **Reply #15 on:** July 08, 2019, 01:46:22 PM »

DH and I have both had this happen. I think every card company would do it. Now, the old cards that we don't want to lose we make it a point to charge something at least once a year.

Telecaster · « **Reply #16 on:** July 08, 2019, 01:58:13 PM »

If you truly aren't using the card, it might simplify your life just to let it go. Capital One has a credit simulator on their site (as do some other credit card companies) that lets you test the credit score effect of canceling a card. Typically, as long as you stay above 760-ish there is no downside.

I just had a bank cancel a credit card for lack of use, and it dropped my credit by two points. I'm not sure how long I had the card. I think about eight years or something.

Dragonswan · « **Reply #17 on:** July 09, 2019, 08:59:45 AM »

Yep. Subscriptions on autopay. I have my gym membership monthly billed to my oldest credit card. And I get a few reward points to boot.

RocketSurgeon · « **Reply #18 on:** July 09, 2019, 11:25:33 AM »

Target closed my card after 2, maybe 3 years of inactivity

I'm a red panda · « **Reply #19 on:** July 09, 2019, 11:55:25 AM »

I've had this happen with multiple banks. I still have near perfect credit. It barely makes a blip, even when the card is old.

Rosy · « **Reply #20 on:** July 09, 2019, 12:42:49 PM »

I've had several cards closed for non-use, Target and a CU card, blipped for a couple of points on my credit report that's all - within six months it was back up. Before that, I actually closed several of my cards myself before I knew that it was better to let the credit company do it.

I wouldn't worry about it, look around for a new card with a bonus - this blog does an in-depth write up of each credit card - www.doctorofcredit.com
search their best credit card bonus for July

I have a reason for owning each one of my cards - one for the low 9.99 % interest and one for the rewards, travel perks and no foreign exchange fee, one for amazon...
Just set up a small auto-pay like Netflix during times of low usage or sometimes I charge an e-book for a buck or two.

Bernard · « **Reply #21 on:** July 09, 2019, 01:22:56 PM »

Funny enough, just yesterday I received a letter from BofA telling me that they will close my account if I don't use my card 'til August 19, 2019. My FICO score is now 841 (not sure if it will go higher), and while I don't really need a higher credit score, I like to keep all my credit accounts open. I will just use this card once a year from now on, and that should do the trick.

HBFIRE · « **Reply #22 on:** July 09, 2019, 09:51:19 PM »

I mean it makes total business sense. The bank gets no financial upside for keeping the card open, and still has to take on the risk (fraud).

bilmar · « **Reply #23 on:** July 10, 2019, 04:14:04 PM »

Consider deliberately NOT using store cards regularly.
After a while you may get one of those ' we've missed you' offers to entice you back.

Given how good my credit still is after having a few unused cards closed over the years I don't think you will get dinged much (if any) for a card closing for lack of use.

Bill

Indexer · « **Reply #24 on:** July 10, 2019, 04:58:07 PM »

I have an old Cap1 CCs I don't use either. I set it as the card for my Amazon Prime subscription so there are regular small transactions to prevent this from happening.

Sorry that I don't have a solution for the OP, but if you have old cards you want to keep open I highly recommend setting them as the payment method for a cheap subscription service.

Ratherboard · « **Reply #25 on:** July 12, 2019, 08:55:02 AM »

Hi Everyone! Thank you so much for your advice and comments!

I'll definitely start setting reminders. I like the gift card idea...just moving money from one place to the other. :) @Indexer great idea on the recurring payments. I just need to set an auto-pay to make sure I don't forget to pay the balance.

As for the comments of "the bank has the right to do it, it makes perfect business sense" yes, I can certainly understand them wanting to cut the "dead weight" from their books, I would just have preferred some notice so that I could start using the card again.

@bilmar thanks for your note. I don't think it will hurt much either, but good to know. @Rosy thanks for the advice and the reference to the website.

This is why I love MMM. Great advice and experience on here! :)

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Author Topic: Capital One just canceled my cards for lack of use (Read 3050 times)