"Sockdrawer" for unused cards - bad?

[BlueHusky]

So I have 4 or 5 credit cards that I don't want to use anymore due to bad rewards, etc. I don't want to close them because they are my oldest cards, so my AAoA would drop. What should I do? If I "sockdrawer" them, won't the creditors cancel them eventually? How often do I need to use them to prevent closure? If the creditors do close them, is that worse a credit report than me closing them, since it will say "Closed at creditor's request"

Help?

[jamesdwi]

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@BlueHusky wrote:

So I have 4 or 5 credit cards that I don't want to use anymore due to bad rewards, etc. I don't want to close them because they are my oldest cards, so my AAoA would drop. What should I do? If I "sockdrawer" them, won't the creditors cancel them eventually? How often do I need to use them to prevent closure? If the creditors do close them, is that worse a credit report than me closing them, since it will say "Closed at creditor's request"

Help?

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Incorrect, AAoA is not affected by closing accounts,  Even closed credit cards stay on your report for 10 years. The main reason to keep cards open is for the UTL factor, if your old cards have AF's and low limits think about closing them before the next fee has posted, As long as the card is PIF when closed and no lates who requested the closing has little if any impact on your score. 

the only messages that are a kiss of death are CO's and  "Settled for less than owed"  otherwise, Feel free to sock drawer cards you aren't using, if you want to keep the TL open and has no fee's charge something small on them every 3-6 months and then PIF before the statement cuts.  If you are interested in CLI's  from a company like GE, they like use a Sock drawered card may get you a CLD if you don't use it for a year or so. 

[BlueHusky]

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@jamesdwi wrote:

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@BlueHusky wrote:

So I have 4 or 5 credit cards that I don't want to use anymore due to bad rewards, etc. I don't want to close them because they are my oldest cards, so my AAoA would drop. What should I do? If I "sockdrawer" them, won't the creditors cancel them eventually? How often do I need to use them to prevent closure? If the creditors do close them, is that worse a credit report than me closing them, since it will say "Closed at creditor's request"

Help?

---

Incorrect, AAoA is not affected by closing accounts,  Even closed credit cards stay on your report for 10 years. The main reason to keep cards open is for the UTL factor, if your old cards have AF's and low limits think about closing them before the next fee has posted, As long as the card is PIF when closed and no lates who requested the closing has little if any impact on your score. 

the only messages that are a kiss of death are CO's and  "Settled for less than owed"  otherwise, Feel free to sock drawer cards you aren't using, if you want to keep the TL open and has no fee's charge something small on them every 3-6 months and then PIF before the statement cuts.  If you are interested in CLI's  from a company like GE, they like use a Sock drawered card may get you a CLD if you don't use it for a year or so. 

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Thank you so much! Good to know

[Anonymous]

Household Bank shut down the wifes CC without notice because she hadnt used it in a year.

Not sure if they're all like that or not.

We just get gas or something at least once every 6 months on the cards we have.

[kjm79]

And I'll add that not all closed accounts automatically drop off after 10 years from the closing date either.  My first credit card, jewelry account, was opened in 1999 and closed in 1999. It's still reporting.  It even updates every so often.  It's currently slated to fall off in 2021 sometime.  That date changes everytime it updates. 

[pizzadude]

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@kjm79 wrote:

And I'll add that not all closed accounts automatically drop off after 10 years from the closing date either.  My first credit card, jewelry account, was opened in 1999 and closed in 1999. It's still reporting.  It even updates every so often.  It's currently slated to fall off in 2021 sometime.  That date changes everytime it updates. 

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Wow, that's fantastic !   It's great when old positive accounts hang around....

As far as inactivity, I'd recommend using them at least once every 3 months or so just to be safe.

[LS2982]

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@BlueHusky wrote:

So I have 4 or 5 credit cards that I don't want to use anymore due to bad rewards, etc. I don't want to close them because they are my oldest cards, so my AAoA would drop. What should I do? If I "sockdrawer" them, won't the creditors cancel them eventually? How often do I need to use them to prevent closure? If the creditors do close them, is that worse a credit report than me closing them, since it will say "Closed at creditor's request"

Help?

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I'd say use them at least once every month, I know others may say yo ucan go longer but at least it shows your active and they even throw a CLI at you!

[Gollum]

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@BlueHusky wrote:

So I have 4 or 5 credit cards that I don't want to use anymore due to bad rewards, etc. I don't want to close them because they are my oldest cards, so my AAoA would drop. What should I do? If I "sockdrawer" them, won't the creditors cancel them eventually? How often do I need to use them to prevent closure? If the creditors do close them, is that worse a credit report than me closing them, since it will say "Closed at creditor's request"

Help?

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Assuming you do not have a balance on any of those cards:

I think credit card companies need to receive at least $35/year per card to cover their costs for a card.

That can be in the form of an annual fee, or their take (approx. 1.9%) of transaction fees, or the interest from a monthly balance.

For a no-annual-fee card, running $160/month through it should result in approx. $36/year transaction fees.  Or you could carry a balance (determined by the card's interest rate) that results in $35/year interest payments to the bank.

If you close a card, it will still count (for your FICO scores) toward your average age of accounts (AAoA) for ten years.

Presumably, you would open a new card sometime during that period that would add to your AAoA.