topic Re: Would cards with a fee be cancelled with no activity too? in Credit Cards

Would cards with a fee be cancelled with no activity too?

jasonkm1 — Mon, 29 Jun 2015 02:29:28 GMT

I read here how companies regularly cancel cards without warning if there is no activity on it for a certain time. Is this just for no annual fee cards, or would cards that charge an annual fee, like the IHG, Marriott, Citi Prestige, Delta Amex be cancelled too? I ask because I have those cards but hardly use the marriott and ihg, i basically got it for the free annual hotel room. Anybody here have this type of card cancelled for no activity?

Re: Would cards with a fee be cancelled with no activity too?

SnackTrader — Mon, 29 Jun 2015 02:33:03 GMT

I would guess that incurring the fee and paying it off would be considered activity, and therefore you would never be inactive for more than 12 months. However, just a guess. I do not know the official answer - you may need to call the lender.

Re: Would cards with a fee be cancelled with no activity too?

Anonymous — Mon, 29 Jun 2015 02:36:49 GMT

No idea. I have never let an AF card with no activity renew the next year, so I can't speak for it. I doubt too many people here have done that either since it is generally unwise to pay an AF for a card you don't intend on using. I doubt you will get the kind of data needed to make a general statement as to cancellation of AF cards here.

If you are more specific with the issuer, you might have better luck since every issuer might treat inactivity in a different way. I doubt too many posters here have paid AF for cards they don't use, but specifying the issuer, and preferrably the card, might get you better results.

Re: Would cards with a fee be cancelled with no activity too?

Sharingan — Mon, 29 Jun 2015 02:59:20 GMT

I have been curious about this as well. I still have my AmEx Zync that I barely ever use, but it would make sense for the AF to count as activity. I would imagine that an issuer would still consider closing the account if they believe that the credit line could be more profitable elsewhere.

Re: Would cards with a fee be cancelled with no activity too?

jasonkm1 — Mon, 29 Jun 2015 03:11:14 GMT

ok i didn't realize people were letting the cards be inactive for more than a year before it got cancelled, thats a pretty long time. For me it's worth paying the annual fee on the IGH and Marriott just for the free room every year.

Re: Would cards with a fee be cancelled with no activity too?

kdm31091 — Mon, 29 Jun 2015 03:48:10 GMT

Why would you pay an AF for a card you dont intend to use? There are better ways to waste money.

Re: Would cards with a fee be cancelled with no activity too?

Sharingan — Mon, 29 Jun 2015 11:05:37 GMT

@kdm31091 wrote:
Why would you pay an AF for a card you dont intend to use? There are better ways to waste money.

In my case, the answer is very simple. I will not be keeping my AmEx Platinum after this year, and there are occasions that I prefer to use a charge card. $25 a year is a much better deal for me than $95 for the Green, and my Zync has just as high of an exposure limit as my Platinum does. Both are significantly higher than my regular credit cards.

Re: Would cards with a fee be cancelled with no activity too?

noobody — Mon, 29 Jun 2015 11:19:37 GMT

Good question, I read t&c of my United explored card, they did mention they could still close the account due to inactivity even annual fee has been paid. No first hand experience tho.

Re: Would cards with a fee be cancelled with no activity too?

takeshi74 — Mon, 29 Jun 2015 13:00:46 GMT

Verify policies on closure due to inactivity with each of your creditors. Do not rely on assumption or broad generalizations. These policies can and do vary from creditor to creditor.

Re: Would cards with a fee be cancelled with no activity too?

kdm31091 — Mon, 29 Jun 2015 13:15:31 GMT

@takeshi74 wrote:
Verify policies on closure due to inactivity with each of your creditors. Do not rely on assumption or broad generalizations. These policies can and do vary from creditor to creditor.

Exactly. OP, it would behoove you to verify the policy, no matter what anecdotal evidence you get here.

Re: Would cards with a fee be cancelled with no activity too?

Anonymous — Mon, 29 Jun 2015 13:42:33 GMT

@takeshi74 wrote:
Verify policies on closure due to inactivity with each of your creditors. Do not rely on assumption or broad generalizations. These policies can and do vary from creditor to creditor.

And are also not always transparent, in that an issuer will not tell you "No use for X months means your card is at risk for closure". Some do, e.g. Barclays on some cards.

That said, ALL cards contain language allowing the issuer to close them at any time, inactivity or not. Sometimes you would get a pro-rated rebate of the AF, but not always if the closure reason was because of bad behavior.

Re: Would cards with a fee be cancelled with no activity too?

Anonymous — Mon, 29 Jun 2015 17:22:38 GMT

@Kdm

Some off the AF cards have benefits that offset the annual fee. Marriott and IHG are the ones that come to mind. Even if you travel once a year or want to a staycation, the free nights come in handy. IHG is diefnitely a keeper, you can stay at any property in the world, any tier.