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Inactive Credit Cards, what will happen?

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TheCreditKid
Established Contributor

Inactive Credit Cards, what will happen?

My BB store card has been inactive for nearly a 1 year and 2 months now. Still HSBC gave me a CLI yesterday from $800 to $1200. This is a great card because of the offer of 0% interest on purchases above $249 for 18 months. However, I left this card inactive because all my other cards are rewards card and I want to built points. After how long would it take for a CC company to close an account due to inactive activities? I'm really planning to purchase something big with this HSBC BB storecard so they won't close it. My overall AAOA sucks and I can't afford them closing my account.

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All human wisdom is summed up in two words - wait and hope.

-Alexander Dumas
Message 1 of 8
7 REPLIES 7
Anonymous
Not applicable

Re: Inactive Credit Cards, what will happen?

It is up to the issuer to decide; I don't beleive there is any regulation which states how long a CC must be inactive before it is closed.  At the last company I worked for, it was initially set to 36 months and eventually dropped to 25 months since last financial activity (purchase, return, payment, cr/dr adjustment, etc). 

 

As a side note, it is my understanding that closing an account will not lower your AAoA since closed accounts are included int he calculation.  Last time I manually calculated mine, I found this to be the case.  If you search "AAoA", there are some really good posts out there that describe exactly how AAoA is calculated.  I did my calculation using an excel spreadsheet so it will automatically recalculate the AAoA based on the current date.

 

Side note #2 is about the impact of closed accounts...  There are also some good posts out there about that as well that describe the ins and outs of closing accounts and the impact on your score.

Message 2 of 8
MarineVietVet
Moderator Emeritus

Re: Inactive Credit Cards, what will happen?

 


@TheCreditKid wrote:

My BB store card has been inactive for nearly a 1 year and 2 months now. Still HSBC gave me a CLI yesterday from $800 to $1200. This is a great card because of the offer of 0% interest on purchases above $249 for 18 months. However, I left this card inactive because all my other cards are rewards card and I want to built points. After how long would it take for a CC company to close an account due to inactive activities? I'm really planning to purchase something big with this HSBC BB storecard so they won't close it. My overall AAOA sucks and I can't afford them closing my account.


I agree with cardmaster that simply closing an account (or having it closed) will not affect your AAoA.

 

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work


Message 3 of 8
stan_the_man
Established Contributor

Re: Inactive Credit Cards, what will happen?

GEMB closed my Banana Republic (Gap/Old Navy) card after 12 months about two years ago.

 

A couple years ago, HSBC dropped my credit limit twice (12 months apart), after my card MC was inactive for over two years (not sure the exact amount of time), but they never closed the card. I would not hold out that long.

 

I suggest going into a Best Buy and buy a pack of gum with the card every couple months -- you should be able to get out of there with less than $2 in charges. Personally, I wouldn't let more than five months of inactivity go by.

Message 4 of 8
Shane1
New Contributor

Re: Inactive Credit Cards, what will happen?

HSBC? You're lucky they haven't closed it already. They're not known for letting inactive accounts live for very long.

Message 5 of 8
stan_the_man
Established Contributor

Re: Inactive Credit Cards, what will happen?

I'm fully aware of the fact that HSBC should have closed my account.

 

To be honest, I sock drawered the card because I didn't really need it. I still really don't need it, but I learned a little bit about Fico scoring and figured out that -- since it's my longest open account, and that two other accounts I had and closed before then are going to drop off in the next two years -- it's probably a good idea for me to hold onto this card (even with all of its problems).

 

 

Message 6 of 8
haulingthescoreup
Moderator Emerita

Re: Inactive Credit Cards, what will happen?

They seem to be a lot more relaxed about the store card than they are about their bank cards. I think I went 8 months once without using it.

 

I try to air it out every 5-6 months now, simply because they've been so generous with the CLI's.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 7 of 8
Anonymous
Not applicable

Re: Inactive Credit Cards, what will happen?


@Shane1 wrote:

HSBC? You're lucky they haven't closed it already. They're not known for letting inactive accounts live for very long.


I agree with Stan the man and Shane 1. I would use it for a pack of gum or a cd or something, PIF, then sock drawer it for a few more mos.  I left my Hosuehold (HSBC) card go 6 mos and they closed it.   Smiley Sad   They aren't too patient.

Message 8 of 8
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