topic Re: Can a cc close a card for non use during the year that you paid the af ? in Credit Cards

Can a cc close a card for non use during the year that you paid the af ?

SUPERSQUID — Fri, 27 Aug 2021 15:33:41 GMT

Can a credit card company close the credit card for non use during the year that the annual fee was paid for?

Re: Can a cc close a card for non use during the year that you paid the af ?

simplynoir — Fri, 27 Aug 2021 15:40:51 GMT

Can they? Sure

Will they? No, since it's basically free money to them regardless even with no use on the card

Re: Can a cc close a card for non use during the year that you paid the af ?

Anonymous — Fri, 27 Aug 2021 16:32:35 GMT

We've seen U.S. Bank close AF cards during the year - they refund the AF and then close the card. But those were closures for (alleged) fraud (gift card purchases), not closures for non-use. I agree with @simplynoir that, as a practical matter, issuers are extremely unlikely to close AF cards for non-use, as they turn a profit (via the AF) from folks who don't use the card. Unlike the case with $0 AF cards, where there's no profit in maintaining a line of credit for a customer who never uses it.

Re: Can a cc close a card for non use during the year that you paid the af ?

simplynoir — Fri, 27 Aug 2021 16:40:53 GMT

Yeah, if anything depending on the type of card I would see a bank performing a CLD to reduce exposure and give the unused credit line to other customers

Re: Can a cc close a card for non use during the year that you paid the af ?

SoCalGardener — Sun, 29 Aug 2021 16:23:26 GMT

@Anonymous wrote:
We've seen U.S. Bank close AF cards during the year - they refund the AF and then close the card. But those were closures for (alleged) fraud (gift card purchases), not closures for non-use.

I don't want to hijack this thread, but I would like to ask about this! I keep seeing references to gift card purchases somehow triggering account closures, but I don't have any idea WHY. I'm sure there's more to it than simply using a CC to buy a gift card and then having your account closed, but what is it?!

Never mind. A very kind member PMed me and gave me an excellent explanation, which now makes the whole thing make sense to me!

Re: Can a cc close a card for non use during the year that you paid the af ?

Remedios — Sat, 28 Aug 2021 01:18:19 GMT

Color me confused, what do closures related to a single US Bank card (Altitude Reserve) over potential churning (not all were churning but it was an effective strategy) that happened quite a few years ago have to do with OPs question?

I'm assuming OP is talking about low AF on rebuilder cards since they are fresh out of BK, in which case it would depend on a lender. Most will allow non use to go on as long as AF/fees are paid, those cards typically do not have rewards or rewards aren't exactly the type to get excited over, so no loss for them.

Re: Can a cc close a card for non use during the year that you paid the af ?

AverageJoesCredit — Sat, 28 Aug 2021 01:27:58 GMT

@Remedios wrote:
Color me confused, what do closures related to a single US Bank card (Altitude Reserve) over potential churning (not all were churning but it was an effective strategy) that happened quite a few years ago have to do with OPs question?

I'm assuming OP is talking about low AF on rebuilder cards since they are fresh out of BK, in which case it would depend on a lender. Most will allow non use to go on as long as AF/fees are paid, those cards typically do not have rewards or rewards aren't exactly the type to get excited over, so no loss for them.

It relates to OPs question because OPs question was an open question regarding a credit company and a card with AF being paid yet still closed and a reference was given to give an example which in a way answered the OPs question. not everyone will read a signature and infer thats what they were referring to. Its often asked that we answer what an OP is asking but not to infer or stray as to not get away from whats being asked, i think this is a good example.

Re: Can a cc close a card for non use during the year that you paid the af ?

pizzadude — Sat, 28 Aug 2021 01:34:24 GMT

@SoCalGardener wrote:
@Anonymous wrote:
We've seen U.S. Bank close AF cards during the year - they refund the AF and then close the card. But those were closures for (alleged) fraud (gift card purchases), not closures for non-use.
I don't want to hijack this thread, but I would like to ask about this! I keep seeing references to gift card purchases somehow triggering account closures, but I don't have any idea WHY. I'm sure there's more to it than simply using a CC to buy a gift card and then having your account closed, but what is it?!

I won't go into details here but if you purchase large dollar amounts / quantities of gift cards ( which could be considered to be cash equivalents ) you're probably going to raise a few eyebrows with your creditors. No one will care about occasional purchases, but if you're doing this regularly and for large amounts you're probably going be scrutinized.

Re: Can a cc close a card for non use during the year that you paid the af ?

Remedios — Sat, 28 Aug 2021 01:40:40 GMT

@AverageJoesCredit wrote:
@Remedios wrote:
Color me confused, what do closures related to a single US Bank card (Altitude Reserve) over potential churning (not all were churning but it was an effective strategy) that happened quite a few years ago have to do with OPs question?

I'm assuming OP is talking about low AF on rebuilder cards since they are fresh out of BK, in which case it would depend on a lender. Most will allow non use to go on as long as AF/fees are paid, those cards typically do not have rewards or rewards aren't exactly the type to get excited over, so no loss for them.

It relates to OPs question because OPs question was an open question regarding a credit company and a card with AF being paid yet still closed and a reference was given to give an example which in a way answered the OPs question. not everyone will read a signature and infer thats what they were referring to. Its often asked that we answer what an OP is asking but not to infer or stray as to not get away from whats being asked, i think this is a good example.

So, what you're saying people don't read when they read, so every possible case scenario should be discussed with the emphasis on ones not even remotely applicable.

Topic isn't open ended, it's defined in the title of the thread "Non-use" as in SD card. Going off on every possible tangent, including an event that barely lasted couple of months on a single high end AF card has already got one member wondering if US Bank is going to close cards over a gift card purchase.

Up next, US Bankdread.

Re: Can a cc close a card for non use during the year that you paid the af ?

Brian_Earl_Spilner — Sat, 28 Aug 2021 02:35:33 GMT

@AverageJoesCredit wrote:
@Remedios wrote:
Color me confused, what do closures related to a single US Bank card (Altitude Reserve) over potential churning (not all were churning but it was an effective strategy) that happened quite a few years ago have to do with OPs question?

I'm assuming OP is talking about low AF on rebuilder cards since they are fresh out of BK, in which case it would depend on a lender. Most will allow non use to go on as long as AF/fees are paid, those cards typically do not have rewards or rewards aren't exactly the type to get excited over, so no loss for them.

It relates to OPs question because OPs question was an open question regarding a credit company and a card with AF being paid yet still closed and a reference was given to give an example which in a way answered the OPs question. not everyone will read a signature and infer thats what they were referring to. Its often asked that we answer what an OP is asking but not to infer or stray as to not get away from whats being asked, i think this is a good example.

Thread title was closure in regards to non-use. Example given was closure due to alleged fraud. Not even the same ballpark.

Re: Can a cc close a card for non use during the year that you paid the af ?

NRB525 — Sat, 28 Aug 2021 10:44:52 GMT

@SUPERSQUID wrote:
Can a credit card company close the credit card for non use during the year that the annual fee was paid for?

They can close it, but non-use is unlikely to trigger closing. The AF contributes a lot toward the bank overhead of managing the card account, including computer server costs, card printing and customer mailings.

It also covers some of the loan loss risk associated with credit cards. When the card is not being used, there is no current loan loss risk.