Macy's closed account for more than 30-month inactivity with no prior warning...do all CC's do this?

[Anonymous]

I read this from some other thread, but it goes like this "bank can close your account any time for any reaseon, just as you have every right to close your card any time for any reason".

I was checking out my credit report, and see I used to have a chase bank card, but due to inactivity for 4 years it got closed. When I tried to use the new card they sent me, got declined. so I called chase and asked about what's going on, and only thing she could tell me was "you're not in our system anymore, ma'am", as I was checking out the credit card my account page.

[pizza1]

And you are shocked why? 2+ years of not using the card and you are shocked they closed it? CC companies do close cards that aren't being used and without warning. Rule of thumb, buy something small every 6 months, turn around and pif, to keep it open. Sorry 

[takeshi74]

(nm)

[foggyjack]

MyFico84,

Wow!  Thanks so much, MyFico84, for this updated information! :-)  I called Macy's when I first received the MyFico alert about Macy's; but, it was on a Saturday and the representative I spoke to was useless.  I've never had any lates or any derogatory information and I always pay in full.  I think I'll call again!  Thanks so much! :-)

[foggyjack]

RedMiniStapler,

This is what I have learned now that I've had this account closed for dormant activity.  I usually try to use my cards every 6 months or so and just pay in full, but I just forgot to use Macy's.

[FinStar]

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@foggyjack wrote:

MyFico84,

Wow!  Thanks so much, MyFico84, for this updated information! :-)  I called Macy's when I first received the MyFico alert about Macy's; but, it was on a Saturday and the representative I spoke to was useless.  I've never had any lates or any derogatory information and I always pay in full.  I think I'll call again!  Thanks so much! :-)

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It's likely that they may not be able to reopen it but you can try again.

[foggyjack]

Pizza1,

Yes, I was shocked about Macy's closing the account, but probably more so because they didn't forewarn me...had they sent me some sort of notice, I would have used the card to keep it open.  Obviously, I learned a lesson and came to the MyFico forum when this happened back in August to ask if 'closed by grantor' would negatively affect my credit rating...it did not change my credit scores. 

[dbatl14]

I think a lot of people don't understand what "Credit" really is.

1. It is a privilege where the bank offers you to borrow money at will

2. It is a tool

3. The banks do this to make money nothing more than that.

Banks a lot of times offer these credit limits so that you use it. Each single swipe generates revenue for them, the higher or more the amount the more money they make. So if you just sit on it and do nothing with it, you are useless to them and they rather allocate that credit to someone that will make them the money unless you pay a annual fee for just having the card. But in your case you almost have near perfect credit I highly doubt that you pay any fees.

So, it is understandable that they will close accounts at will and it also part of ANY CC agreement that they can close your account for any reason.

In so many words to Macy's you were a "bad" customer and they rather give that credit line to someone that will actively use it as the card is not only making them money by transactions but it really relates back you supporting their business.

Banks care about people that use credit heavily, spend a lot but yet is responsbile and pays their bills and has the means to pay them. Just because you have perfect credit doesn't qualify you to be a "great" candidate especially if you never use any of your cards.

[kdm31091]

I'm not surprised they closed it after that much time with no usage. It is a common thing, and most T&Cs will mention how long a card can be "inactive" before they will simply close it.

This is kind of why I think if a card is no longer useful, you may as well close it yourself. Clearly if you didn't use it for 30 months you weren't going to use it again anyway. If you want to keep a card open, usually people suggest a charge every 6 months. I personally find that pointless and if you aren't getting real usage out of a card just close it - why keep it active "just because" every 6 months - but YMMV

Anyway, it's nothing new and something most if not all issuers will do after x amount of time. The amount of time varies, and there are occasional reports of dormant cards not being closed, but it's the exception not the rule.

[Anonymous]

Yes they will close your account if you don't use it for a while or if your credit situation changes drastically for the worse.