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Most people have canceled a credit card or 5 in their day. You may have opened up a Macy’s card to buy a spectacular pair of boots that would only be an additional 20% off if you used the card to purchase them, etc. I once opened an Express card to receive a generous discount on a winter coat I was planning to purchase, never used the card again, and ultimately ended up canceling it.
I have always thought that maintaining a zero balance on my credit card was a good thing. Apparently the credit card companies do not agree. I came across this article on msn money detailing how many credit card companies are choosing to close (without warning) accounts that have been inactive for a period of time, also known as cards that have been paid off and are carrying a zero balance from month to month. I have to say I am pretty annoyed at this. Punishing card holders by canceling their cards due to “inactivity” is ridiculous. Especially in this economy, it seems downright wrong to punish people for not spending money.
I would be curious to hear from anyone who has had their card cancelled for this reason.
COMMENTS(4)
January 20th, 2009 at 5:02 pm
That’s why I charge for a piece of bubble gum every year…
January 20th, 2009 at 5:07 pm
I guess I have to start buying a snickers with my CC once in a while.
January 20th, 2009 at 7:45 pm
I paid off $70K in credit card debt and decided they were just for emergencies. I got a letter from CITI that said since I had not used my card for 12 months they were going to cancel my card and that it “might” report negatively on my FICO score. Um.. I just paid you guys back over $70K and I’m a credit risk? I guess I’ll go put that yacht on my platnum VISA.
January 21st, 2009 at 7:41 pm
I have never carried a balance and I’ve had one company cancel me for not using their card. But if you use the card at least once a year, I don’t think they will do it. At one time I had 27 credit cards. It was sort of a hobby, but I let most of them expire.