Author Topic: Anyone had Credit Cards closed due to lack of activity?  (Read 6837 times)

frugaliknowit

  • Handlebar Stache
  • *****
  • Posts: 1687
Anyone had Credit Cards closed due to lack of activity?
« on: April 27, 2016, 01:34:54 PM »
HI Comarades,

I generally only use my most rewarding cash card (except for occaisional other hacks).  Until this year, I would use the (currently 4) inactive, older cards on a quarterly basis (make a small purchase), just to prevent them from being closed by the issuer due to lack of activity.  This year, I haven't been "waking them up" at all. 

Have any of you had CC accounts closed on you by the issuer due to lack of activity?  My only concern is keeping my score up to do hacks and maybe a HELOC at some point...but I'd rather not bother with this nonsense of systematically buying a pack of gum on each one once per quarter.

RamonaQ

  • Pencil Stache
  • ****
  • Posts: 875
  • Age: 44
  • Location: Midwest
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #1 on: April 27, 2016, 01:47:36 PM »
I have, but it was after a long time (years) of not using the card.  I actually didn't remember if I had cancelled it or not and called to check.  Found out it had been closed ages ago due to inactivity.

I have one card that I pretty much only use in December and haven't had any issues with that one being closed.

AlwaysLearningToSave

  • Bristles
  • ***
  • Posts: 437
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #2 on: April 27, 2016, 01:51:03 PM »
I have, but it was after a long time (years) of not using the card. 

Same here-- One of my wife's cards was recently cancelled after I don't know how many years of nonuse.

Pigeon

  • Handlebar Stache
  • *****
  • Posts: 1263
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #3 on: April 27, 2016, 01:57:30 PM »
I just got a notification that my Target RedCard will be closed due to lack of use.

Miss Piggy

  • Handlebar Stache
  • *****
  • Posts: 1365
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #4 on: April 27, 2016, 02:19:12 PM »
Years ago, our HELOC was closed due to lack of use.

NV Teacher

  • Pencil Stache
  • ****
  • Posts: 509
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #5 on: April 27, 2016, 02:23:00 PM »
I have, but it was after a long time (years) of not using the card. 

Same here-- One of my wife's cards was recently cancelled after I don't know how many years of nonuse.

Me too.  It didn't change my FICO score at all.

I'm a red panda

  • Walrus Stache
  • *******
  • Posts: 8082
  • Location: United States
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #6 on: April 27, 2016, 03:23:34 PM »
I've had this done multiple times.
 I don't think it had any impact on my score, but I rarely checked it before Discover started putting it on my statement. Every time it's been pulled (mortgages) it has been impeccable though, so I don't think this really matters.

Catbert

  • Handlebar Stache
  • *****
  • Posts: 1832
  • Location: Southern California
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #7 on: April 27, 2016, 03:29:54 PM »
I've had a no-fee Amex card for ~10 years and have used it for a total of maybe 3 times. 

hops

  • Bristles
  • ***
  • Posts: 388
  • Location: United States
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #8 on: April 27, 2016, 03:50:02 PM »
Many years ago I had a card that's credit limit was significantly reduced due to inactivity. I wanted to keep it on my report due to the age of the account, so I began using it once a month for tiny purchases (promptly repaid) and within a year or so the limit was raised by thousands of dollars. 

Cycling Stache

  • Bristles
  • ***
  • Posts: 471
  • Age: 44
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #9 on: April 27, 2016, 05:02:56 PM »
Years ago, our HELOC was closed due to lack of use.

Wait a minute, what was that about?  Is there a requirement to have some activity at some point?  I just have mine sitting as a (hopefully never needed) springy debt cushion.  Now that you say that, I recall one guy telling me there needed to be activity in the first three years, but then someone else said no, that's not how it works.  Sadly, I haven't gone back to read the paperwork in detail even though I'm a lawyer!

HipGnosis

  • Handlebar Stache
  • *****
  • Posts: 1633
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #10 on: April 28, 2016, 08:52:14 AM »
I used multiple 'teaser-offers' of '0% for a year' credit cards to get out of debt, so I went thru a number of cards and let most of them be cancelled for lack of activity after the offer expired.
Some tell you they 'are cancelled' and others say they will be cancelled unless you call or do something specific.
It only effects your credit score if only have a couple cards.
I now have a few mostly un-used credit cards.  I put an annual fee on them to keep them active; magazine subscription, angies list, AAA...

JLee

  • Walrus Stache
  • *******
  • Posts: 6068
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #11 on: April 28, 2016, 08:53:28 AM »
Yep. I think the last one was a Sears card that I hadn't used in 5 years (or more).

GuitarStv

  • Senior Mustachian
  • ********
  • Posts: 16003
  • Age: 39
  • Location: Toronto, Ontario, Canada
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #12 on: April 28, 2016, 08:56:24 AM »
I will occasionally sign up for a credit card to get some sort of discount or rebate, use it once, pay it in full and then throw it out.  They usually get closed within a couple years.

I'm a red panda

  • Walrus Stache
  • *******
  • Posts: 8082
  • Location: United States
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #13 on: April 28, 2016, 09:11:10 AM »
I will occasionally sign up for a credit card to get some sort of discount or rebate, use it once, pay it in full and then throw it out.  They usually get closed within a couple years.

I'd make sure you keep monitoring them. I've had no fee cards add fees after I had been a user for 10+ years. Then I canceled...

slugline

  • Handlebar Stache
  • *****
  • Posts: 1179
  • Location: Houston, TX USA
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #14 on: April 28, 2016, 12:46:10 PM »
I had a Discover card closed due to inactivity. I now have a personal policy of using each of my credit cards at least once a year.

I'd like to hear more about HELOCs. Is an closure-per-inactivity clause a common thing?

Miss Piggy

  • Handlebar Stache
  • *****
  • Posts: 1365
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #15 on: April 28, 2016, 12:56:28 PM »
Years ago, our HELOC was closed due to lack of use.

Wait a minute, what was that about?  Is there a requirement to have some activity at some point?  I just have mine sitting as a (hopefully never needed) springy debt cushion.  Now that you say that, I recall one guy telling me there needed to be activity in the first three years, but then someone else said no, that's not how it works.  Sadly, I haven't gone back to read the paperwork in detail even though I'm a lawyer!

If I remember correctly, the lending institution was being sold/merged/whatever, and I believe it was a simple "housecleaning" thing.

GuitarStv

  • Senior Mustachian
  • ********
  • Posts: 16003
  • Age: 39
  • Location: Toronto, Ontario, Canada
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #16 on: April 28, 2016, 12:57:27 PM »
I will occasionally sign up for a credit card to get some sort of discount or rebate, use it once, pay it in full and then throw it out.  They usually get closed within a couple years.

I'd make sure you keep monitoring them. I've had no fee cards add fees after I had been a user for 10+ years. Then I canceled...

Legally you have to be notified of changes like that a month in advance in this country.

plainjane

  • Handlebar Stache
  • *****
  • Posts: 1651
Re: Anyone had Credit Cards closed due to lack of activity?
« Reply #17 on: April 29, 2016, 06:29:08 AM »
I had a credit card that was closed for inactivity.  It had a $5 credit on it for going to electronic statements.  So every month, I would get an email saying that it had $5 credit on it.  After seeing this thread, and getting yet another email, I decided this was stupid, and to tell them to keep the $5 in return for not emailing me about the $5 credit I had for a card that I couldn't use.

After about 10 minutes on hold, I explained the situation, and they're mailing me a cheque for $5.  Win-win.