topic Re: Inactive Credit Cards in Credit Cards

Inactive Credit Cards

Fico82 — Sat, 15 Jun 2019 12:03:59 GMT

Hey FicoFam!,
So I manage mine my wife's and parents credit cards and my question is how to avoid the risk of being reported inactive. Now I do try to put a little spend every 6 months by putting few bucks of gas but the part I'm not 100% sure I'm doing correctly is do I let the few bucks report where now I got a statement for them few dollars ? Cause what I'm doing is once it post I pay it therefore statement is still reported as zero and not sure if that is the proper way or if I have been doing this all wrong. Thanks in advance .

Re: Inactive Credit Cards

pinkandgrey — Sat, 15 Jun 2019 13:45:03 GMT

When it comes to activity vs inactivity, all that matters is what the LENDER sees. The statement balance/what gets reported doesn’t matter with regard to keeping the account open. Even if the credit bureaus don’t see utilization, the lender will see any and all uses of the card.

Re: Inactive Credit Cards

HeavenOhio — Sat, 15 Jun 2019 14:15:36 GMT

Over in the scoring forum, we concluded that the old Equifax alerts regarding an "inactive" card becoming "active" had nothing to do with scoring and everything to do with fraud protection. The fact that those alerts were dropped this past February reinforces that theory.

What you're probably looking to avoid is closure due to inactivity. One charge every six months is probably safe. But charging once every three to four months is probably a little better.

Re: Inactive Credit Cards

Fico82 — Sat, 15 Jun 2019 14:37:27 GMT

Thank you both for the advice I really appreciate it . Have a great day !

Re: Inactive Credit Cards

zerofire — Sun, 16 Jun 2019 09:51:06 GMT

When it comes to activity itself on an account the thing that matters is what the lender sees. The lender has full control of the accounts so when the charge comes through as pending that is the first time they see it. The thing that makes me wonder is why do you force the little bit of spend if clearly the account holder seams to not want the account. It is like the account itself does not match the wishes of the holder. For best results you also might want to let the little bit report so that the watching lenders can see what is happening. Constantly doing AZEO is a great way to mess with your head.

Re: Inactive Credit Cards

FireMedic1 — Sun, 16 Jun 2019 11:25:24 GMT

Look at your annual credit reports. It shows how much was used each month. It may not report a statement. But its there as being used. Now if its not used at all. Follow the others advise above. I look at it this way. It cost the CCC's to report to the CRA's each month. You dont use the card. They lose money. Each one of my cards get a little tickle each month that arent my daily drivers. No problems.

Re: Inactive Credit Cards

Anonymous — Sun, 16 Jun 2019 12:28:10 GMT

@FireMedic1 wrote:
Each one of my cards get a little tickle each month that arent my daily drivers. No problems.

Same. Maybe not every month, but most months I put at least a little something on each card. Every six months or so would probably be fine as well, but it's just what works for me.

Every few months or so, I think "I'm just going to let everything report, and see what my scores look like". Then, two days later I find myself paying things off before the statement. It's not the scoring that gets me. Something in my DNA will not let me carry a balance if I can pay it off. So far the credit card companies seem fine with it.

Re: Inactive Credit Cards

Petit3tee — Sun, 16 Jun 2019 13:17:57 GMT

Hello, I also manage both of my parents credit card since they just don't care. I would do the same thing, put a small purchase here and there every month. I would have an auto pay set to minimum balance due. Let say if I put $68, I would prepay $50 as soon as the transaction posted on the account so that the only remaining $18 gets reported when the statement closes. And I've been seeing small balance shows up on their reports. Maybe try to prepay smaller amount? So a little bigger dollar amount gets reported? And more often?

Re: Inactive Credit Cards

Anonymous — Sun, 16 Jun 2019 15:02:57 GMT

As already mentioned by several people above, if you have a habit of PIF before your statement cuts, thus reporting a 0 balance, you will not be closed for inactivity. The lender knows if you are using their card regardless of reporting a balance or not.

Re: Inactive Credit Cards

TheBoondocks — Sun, 16 Jun 2019 15:29:51 GMT

So, yesterday was the day where I opened up my wallet of 8 cards which were not active and I went to the gas station and go to restaurants to put on some small spend. I do it like once a year or every 6 months but the thing is say you pay it in full, you have other cards assuming if you have a 0% interest rate promo that has balance and it reports to the bureau. Or you could PIF for the first month and have a balance running through the second month and have it report but don't worry cause after you PIF the first month, CCC gives you another month of 0% interest while reporting a balance. Now, the problem lies if you have no 0% offers and you're not paying in full or pay before the payment is due. I have most if not all of my cards lined up with the same payment due date that way I don't forget and I have a credit card manager that sets everything up month after month.

When leaving a balance, people recommend $3+, I also heard that CC don't like people charging $1 and pay it off cause it's not making them money. We gotta think like the banks, they help us, we help them. Everyone wins lol. But play it smart.

Re: Inactive Credit Cards

stonedog23 — Sun, 16 Jun 2019 22:30:47 GMT

B of A must love my mom or something. She has one of their cards that she hasn’t used in at least 5 years. It’s a no frills, no rewards “old school” card of theirs. I set up her account online 8 years ago and maintain it, although there is nothing to maintain. It’s active online and recently when her card expired, they sent her a new one. And she hasn’t even activated that one. And they keep sending her pre approved offers for the Cash rewards card. I try to tell her to at least buy some gas or a blouse on it, but it slips her mind to use it. But B of A will not cancel it. I asked her does she have compromising pictures of the CEO or something.

Re: Inactive Credit Cards

Revelate — Tue, 18 Jun 2019 01:15:25 GMT

@stonedog23 wrote:
B of A must love my mom or something. She has one of their cards that she hasn’t used in at least 5 years. It’s a no frills, no rewards “old school” card of theirs. I set up her account online 8 years ago and maintain it, although there is nothing to maintain. It’s active online and recently when her card expired, they sent her a new one. And she hasn’t even activated that one. And they keep sending her pre approved offers for the Cash rewards card. I try to tell her to at least buy some gas or a blouse on it, but it slips her mind to use it. But B of A will not cancel it. I asked her does she have compromising pictures of the CEO or something.

Don't think that will last forever... we're still in the sunshine credit world, while I'm somewhat confident people are trying to talk us into a recession at this point, if things do go sideways in the market or the financial world, there will be a rash of closures for inactivity among other things as banks try to draw down their exposure.

@FireMedic1 not all lenders will report trended data, some of those entries on say your Transunion report will be blank.

Anyway all that said I recently had several lenders which I'd simply forgotten to use in 1.5 years: had to reissue one card that had expired but once that got sorted they all swiped fine... I wouldn't recommend waiting that long, personally I target every six months to buy something small for the cards that I'm just trying to keep barely active that I don't really care if they get closed.

Re: Inactive Credit Cards

Guyatthebeach — Tue, 18 Jun 2019 01:45:19 GMT

Fico82,

I have a spreadsheet with all my credit cards listed on it. I have about 10 cards that basically get socked drawered. I use 3 or 4 of them for gas, lunch, or groceries every 90 days, I let the statement cut, and then pay the bill. I've been doing that for years and never had a problem.

Guyatthebeach