topic Re: CHASE is CLOSING my Credit Card for lack of use in Credit Cards

CHASE is CLOSING my Credit Card for lack of use

LacyLiz — Tue, 28 Apr 2015 17:30:19 GMT

Can Chase close my credit card or reduce my credit limit because I havent used it in two years? I have a zero balance and my Credit Karma scores are 802 Trans Union and 806 Equifax. I do have two other Chase Credit Cards that I pay 100% each month, but the one they want to close is my largest credit available at $7000 which I would use in case of an emergency. They state in their letter that I can call them to reevaluate my options but I am waiting on an $1,867 credit to show up on my credit report before I call them. I have two months before the card expires. They say using the card will not stop it from closing either. Will the closing of the card lower my credit score when it was their choice and not mine. I have heard that closing old unused accounts can actually help but I want this card. I do not keep balances on any card unless its a zero interest offer over time and then its paid off before the offer expires. Please advise!!

Re: CHASE is CLOSING my Credit Card for lack of use

Anonymous — Tue, 28 Apr 2015 17:37:02 GMT

@LacyLiz wrote:
Can Chase close my credit card or reduce my credit limit because I havent used it in two years? I have a zero balance and my Credit Karma scores are 802 Trans Union and 806 Equifax. I do have two other Chase Credit Cards that I pay 100% each month, but the one they want to close is my largest credit available at $7000 which I would use in case of an emergency. They state in their letter that I can call them to reevaluate my options but I am waiting on an $1,867 credit to show up on my credit report before I call them. I have two months before the card expires. They say using the card will not stop it from closing either. Will the closing of the card lower my credit score when it was their choice and not mine. I have heard that closing old unused accounts can actually help but I want this card. I do not keep balances on any card unless its a zero interest offer over time and then its paid off before the offer expires. Please advise!!

They certainly can close the card or reduce your limit for just about any reason. If it does get closed it will not hurt your credit score unless it dramatically affects your utilization. What you need to do is call them and discuss the situation. Don't wait, do it now.

Edit to add - to prevent this from happening with any credit card you need to show some periodic use. The easiest way is to set it to charge some small monthly bill and then set up autopay.

Re: CHASE is CLOSING my Credit Card for lack of use

Anonymous — Tue, 28 Apr 2015 17:33:58 GMT

why is the credit showing up preventing you from calling them?

Re: CHASE is CLOSING my Credit Card for lack of use

JustinS — Tue, 28 Apr 2015 17:34:43 GMT

I'd call them and discuss it. Typically any lender can and usually will close unused accounts if it's been quite awhile. In your case 2 years definitely qualifies as quite awhile. Typically if you want to have an account remain you'd need to use it at least once every year (some even suggest every 6 months) and just PIF right away so there is activity. Showing activity doesn't mean you need to leave a balance report on your credit reports either (DOLA is usually tracked as well plus your lender will see the activity on their end they don't need your reports to tell them you are using the account).

Keep in mind if you just let it go and they close it the account still reports for roughly 10 years on your credit reports/file. It should not just disappear/go away. It will however decrease your available credit by the limit of the TL closed.

Re: CHASE is CLOSING my Credit Card for lack of use

SpiceIslander — Tue, 28 Apr 2015 17:37:08 GMT

@LacyLiz wrote:
Can Chase close my credit card or reduce my credit limit because I havent used it in two years? I have a zero balance and my Credit Karma scores are 802 Trans Union and 806 Equifax. I do have two other Chase Credit Cards that I pay 100% each month, but the one they want to close is my largest credit available at $7000 which I would use in case of an emergency. They state in their letter that I can call them to reevaluate my options but I am waiting on an $1,867 credit to show up on my credit report before I call them. I have two months before the card expires. They say using the card will not stop it from closing either. Will the closing of the card lower my credit score when it was their choice and not mine. I have heard that closing old unused accounts can actually help but I want this card. I do not keep balances on any card unless its a zero interest offer over time and then its paid off before the offer expires. Please advise!!

Sure, they can close the card. You've demonstrated that you don't need the CL by not using the card. Why not give it a few swipes now and then? You don't have to increase your spending, just spread it among all your cards.

You score may or may not suffer if they close it. It would depend on your utilization %. Whether or not it's closed by the grantor does not affect your FICO score.

Re: CHASE is CLOSING my Credit Card for lack of use

SayHey — Tue, 28 Apr 2015 17:44:37 GMT

When you call, if they will not reconsider keeping the card open, you may want to ask if they can simply transfer your limit to another one of the Chase cards you mention. At least you would still have your emergency cushion.

Re: CHASE is CLOSING my Credit Card for lack of use

Anonymous — Tue, 28 Apr 2015 17:46:30 GMT

If you want the card, you would have used it quarterly at least.

Re: CHASE is CLOSING my Credit Card for lack of use

Anonymous — Tue, 28 Apr 2015 18:00:11 GMT

@SayHey wrote:
When you call, if they will not reconsider keeping the card open, you may want to ask if they can simply transfer your limit to another one of the Chase cards you mention. At least you would still have your emergency cushion.

exactly, I've had experience with this and chase is pretty easy to deal with. If i recall I did it all via SM cause 2015.

I can understand OP wanting to wait because i believe its a HP XP, but i'm not 100% because I can't pull my report a few more months

Re: CHASE is CLOSING my Credit Card for lack of use

Callandra — Tue, 28 Apr 2015 18:00:55 GMT

@SayHey wrote:
When you call, if they will not reconsider keeping the card open, you may want to ask if they can simply transfer your limit to another one of the Chase cards you mention. At least you would still have your emergency cushion.

I agree -- it seems that you don't really need the card anyway (if you did, you would've used it in the past two years!). I suggest calling asking to move the limit to one of the other Chase cards you do have and use (or split it between the Chase cards you use). That way you will still have the same amount of available credit but one less card to bother with.

Re: CHASE is CLOSING my Credit Card for lack of use

onstar — Tue, 28 Apr 2015 18:05:26 GMT

@Anonymous wrote:
Edit to add - to prevent this from happening with any credit card you need to show some periodic use. The easiest way is to set it to charge some small monthly bill and then set up autopay.

Or annual?

My AAA Visa card is used to pay the annual AAA fees only.

My Amazon Visa card is used to pay the annual Prime fees only.

Maybe I should make it a habit of using ALL my cards for a $10 purchase every 6 months.

Re: CHASE is CLOSING my Credit Card for lack of use

Creditaddict — Tue, 28 Apr 2015 18:07:18 GMT

why don't you call and ask to move the $7000 credit line over to 1 or both of your other 2 chase cards that it sounds like you do use and close out this one you don't use... Chase consolidates with a sp very easily and quickly over the phone.

Re: CHASE is CLOSING my Credit Card for lack of use

Anonymous — Wed, 29 Apr 2015 02:48:29 GMT

They were generous to have allowed you for two years. Some issuers close your cards after a few months.
Credit karma offers vantage 3.0 scores which are completely useless.

Re: CHASE is CLOSING my Credit Card for lack of use

LacyLiz — Tue, 28 Apr 2015 18:20:46 GMT

Thank you for your comments. I would not have thought to ask to move the credit without them.

Re: CHASE is CLOSING my Credit Card for lack of use

Platinum — Tue, 28 Apr 2015 18:28:24 GMT

@Anonymous wrote:
They were generous to have allowed you for two years. Some issuers close yours cards after a few months.
Credit karma offer vantage 3.0 scores which are completely useless.

Agree. Chase is very tolerant in my opinion. Others will close much sooner.

Re: CHASE is CLOSING my Credit Card for lack of use

medo — Tue, 28 Apr 2015 18:55:32 GMT

When I suspect that I won't have use for a Chase card, I am very quick to move the CL to a new card. I've done it twice so far with no issues. Take advantage of Chase's flexibility.

Re: CHASE is CLOSING my Credit Card for lack of use

Anonymous — Tue, 28 Apr 2015 19:00:37 GMT

@onstar wrote:
@Anonymous wrote:
Edit to add - to prevent this from happening with any credit card you need to show some periodic use. The easiest way is to set it to charge some small monthly bill and then set up autopay.
Or annual?
My AAA Visa card is used to pay the annual AAA fees only.
My Amazon Visa card is used to pay the annual Prime fees only.

Maybe I should make it a habit of using ALL my cards for a $10 purchase every 6 months.

Each creditor is different but I would try to put some charge on it at least every six months. A year might be pushing it.

Re: CHASE is CLOSING my Credit Card for lack of use

Anonymous — Tue, 28 Apr 2015 19:31:00 GMT

@LacyLiz wrote:
Can Chase close my credit card or reduce my credit limit because I havent used it in two years? I have a zero balance and my Credit Karma scores are 802 Trans Union and 806 Equifax. I do have two other Chase Credit Cards that I pay 100% each month, but the one they want to close is my largest credit available at $7000 which I would use in case of an emergency. They state in their letter that I can call them to reevaluate my options but I am waiting on an $1,867 credit to show up on my credit report before I call them. I have two months before the card expires. They say using the card will not stop it from closing either. Will the closing of the card lower my credit score when it was their choice and not mine. I have heard that closing old unused accounts can actually help but I want this card. I do not keep balances on any card unless its a zero interest offer over time and then its paid off before the offer expires. Please advise!!

YES, they can - not just Chase but any creditor/bank can shut the spigot off if you don't use their card. In those 2 years, you should have put some candy or movie tickets on it from time to time. Now, they look at you and say "hey! this dude is not using the credit line we gave him!! Off with his head and close down his card!" Next, they will look at all the happy-peppy people out there in credit card land (ahem, peeps from here on MyFico) and would be MORE THAN HAPPY to give your CL to the lucky "I Approved for Chase Card!!!" quote. Banks want you to swipe and pay interest and or AFs. They don't want their card collecting dust bunnies. In other words, USE IT OR LOSE IT.

So, in July when you read here that someone just got approved with a Chase Card and a SL of $7k or more and is jumping for joy. . . guess what "what they giveth, they take away" that takeaway was your CL.

Re: CHASE is CLOSING my Credit Card for lack of use

SunriseEarth — Tue, 28 Apr 2015 19:30:07 GMT

Two years is a generous amount of time for them to leave the account open due to inactivity. I also recommend reallocating the CL to your other Chase cards.

For those who SD cards, members here typically recommend making a small charge every few months to keep the accounts active if you want to keep that TL.

Re: CHASE is CLOSING my Credit Card for lack of use

uswala — Tue, 28 Apr 2015 19:42:33 GMT

@Creditaddict wrote:
why don't you call and ask to move the $7000 credit line over to 1 or both of your other 2 chase cards that it sounds like you do use and close out this one you don't use... Chase consolidates with a sp very easily and quickly over the phone.

If that $7000 buffer is forcing you to keep that card open then better move your credit line over to your other Chase cards and let them close this card.

Re: CHASE is CLOSING my Credit Card for lack of use

Imperfectfuture — Tue, 28 Apr 2015 21:45:03 GMT

@Anonymous wrote:
@LacyLiz wrote:
Can Chase close my credit card or reduce my credit limit because I havent used it in two years? I have a zero balance and my Credit Karma scores are 802 Trans Union and 806 Equifax. I do have two other Chase Credit Cards that I pay 100% each month, but the one they want to close is my largest credit available at $7000 which I would use in case of an emergency. They state in their letter that I can call them to reevaluate my options but I am waiting on an $1,867 credit to show up on my credit report before I call them. I have two months before the card expires. They say using the card will not stop it from closing either. Will the closing of the card lower my credit score when it was their choice and not mine. I have heard that closing old unused accounts can actually help but I want this card. I do not keep balances on any card unless its a zero interest offer over time and then its paid off before the offer expires. Please advise!!
They certainly can close the card or reduce your limit for just about any reason. If it does get closed it will not hurt your credit score unless it dramatically affects your utilization. What you need to do is call them and discuss the situation. Don't wait, do it now.

Edit to add - to prevent this from happening with any credit card you need to show some periodic use. The easiest way is to set it to charge some small monthly bill and then set up autopay.

This, this, this. My CU card is only 1500, but is oldest card, fixed rate that can be lowered, no ftf nor cash advance fees. The rewards are lackluster at best. But it gets pulled out once a month for a 2 coffee. Will I get a cli? Probably not for many years. But as it stands, it's my best emergency card to have. PS, they offer almost the entire amount available for cash withdrawal.