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Credit Card usage and company closing

New Contributor

Credit Card usage and company closing

Just curious...

 

Do credit card companies CLOSE your line of credit if you dont always put big balances on them?? like i have my merrick and Discover that i use all the time, BUT was just approved for an FNBO, Citi Simp., and Chase Freedom....

 

If i dont use them on a regualr, will they close me out? I like having my utl% down and then cards help that out.

 

Any advice?

Filed Chapter 7 09/02/2015 - 341 meeting 10/02/2015, Just patiently waiting until discharge so i can start start over!
Message 1 of 11
10 REPLIES
New Contributor

Re: Credit Card usage and company closing

No takers?? LOL

Filed Chapter 7 09/02/2015 - 341 meeting 10/02/2015, Just patiently waiting until discharge so i can start start over!
Message 2 of 11
Super Contributor

Re: Credit Card usage and company closing

charge something small ever so often gum,gas,whatever and you will be fine

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 3 of 11
New Contributor

Re: Credit Card usage and company closing

Thanks for the reply.  noted!!

Filed Chapter 7 09/02/2015 - 341 meeting 10/02/2015, Just patiently waiting until discharge so i can start start over!
Message 4 of 11
Valued Contributor

Re: Credit Card usage and company closing

As myjourney noted, the most common reason for closing an account is inactivity. Most issuers close cards if they aren't used very so often, but just how often differs between lenders. Big or small balances don't seem to matter, just some use. It seems to be more of a fraud mechanism than anything else. So use the cards that get you the highest rewards, and put the others in that sock drawer. Pull them out one every few months and you'll be good to go.

In My Wallet: Amex BCP (12/12) $50,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Prestige (4/16) $30,000

Last App: June 27, 2015
Message 5 of 11
Valued Contributor

Re: Credit Card usage and company closing

I meant fraud prevention mechanism.

In My Wallet: Amex BCP (12/12) $50,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Prestige (4/16) $30,000

Last App: June 27, 2015
Message 6 of 11
Valued Contributor

Re: Credit Card usage and company closing


wahoojack13 wrote:

Just curious...

 

Do credit card companies CLOSE your line of credit if you dont always put big balances on them?? like i have my merrick and Discover that i use all the time, BUT was just approved for an FNBO, Citi Simp., and Chase Freedom....

 

If i dont use them on a regualr, will they close me out? I like having my utl% down and then cards help that out.

 

Any advice?


Sounds like you've got a couple of "go to" cards, ones that you use the most frequently.  The other cards, like others have suggested, can simply be rotated in to your usage on occasion, to keep them active and current.  There's reports here of folks SD'ing cards for months, then pulling them out and using them, then back into the SD...with no adverse action.  I think most of us have our favourite cards to use and then rotate the rest as needed, depending on the purpose of the card. 

EX = 849 EQ = 850 TU = 850 as of 07/2017
Retired and Retiring Cards!
Message 7 of 11
Established Contributor

Re: Credit Card usage and company closing

some will sometimes reduce your limits cause your limits greatly exceeds your normal spending (if you have 20k card and only use 1-2 a month) but decreases like these are rare.


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Message 8 of 11
Valued Contributor

Re: Credit Card usage and company closing

Just use them once every three months or so and you'll be fine.

Message 9 of 11
Established Contributor

Re: Credit Card usage and company closing


boomhower wrote:

Just use them once every three months or so and you'll be fine.


I like to annoy Target Cashiers for this =)

 

Target Prepaid Amex Smiley Wink

 

You can load it from a credit card for $5 upto $1000 with any number of credit cards, I load up $5 from each of my 20 cards just for fun, then use it to buy $100 of groceries =)


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Message 10 of 11