topic Re: Close for non-use warning, question. in Credit Cards

Close for non-use warning, question.

Anonymous — Sun, 25 Dec 2022 03:13:04 GMT

I recently received a warning from Barclays that they would close my card, as I haven't used in a while (Jul 2021, what's the problem!), if I don't use it in 30 days.

So I put a $5 amazon reload on it.

Then I realized that I am perfectly happy when cards close from non-use when they don't warn me, so why did I bother with this! Just wondering if others are the same, in which case it's a clever trick by those banks that do warn!

Re: Close for non-use warning, question.

SweetCreditObsession — Sun, 25 Dec 2022 06:54:21 GMT

@Anonymous wrote:
I recently received a warning from Barclays that they would close my card, as I haven't used in a while (Jul 2021, what's the problem!), if I don't use it in 30 days.

So I put a $5 amazon reload on it.

Then I realized that I am perfectly happy when cards close from non-use when they don't warn me, so why did I bother with this! Just wondering if others are the same, in which case it's a clever trick by those banks that do warn!

I try to use my cards at least once or twice per year to keep them active. I could see where it'd act as an incentive for some...being told you'll lose something against your will isn't pleasant

Re: Close for non-use warning, question.

tcbofade — Sun, 25 Dec 2022 11:16:44 GMT

DW recently got the same letter on her Ring card, so we used it for a weeks worth of groceries.

I actually really appreciate the warning letter... some banks will simply close the account without notifying you. After receiving such a letter, you can make the decision to use the card or not.

Re: Close for non-use warning, question.

OmarGB9 — Sun, 25 Dec 2022 13:02:12 GMT

I don't know that it can be considered a "trick." I mean, those who care probably wouldn't let it get to that point, and those that don't will just ignore the warning anyway.

Re: Close for non-use warning, question.

woodyman100 — Sun, 25 Dec 2022 17:07:19 GMT

Just received a notice from Cardless for my Celtic card. Been about 6 or 7 months. Told me to use it once or they would close. QT coffee club on Apple Pay it is!

@Anonymous wrote:
I recently received a warning from Barclays that they would close my card, as I haven't used in a while (Jul 2021, what's the problem!), if I don't use it in 30 days.

So I put a $5 amazon reload on it.

Then I realized that I am perfectly happy when cards close from non-use when they don't warn me, so why did I bother with this! Just wondering if others are the same, in which case it's a clever trick by those banks that do warn!

Re: Close for non-use warning, question.

ptatohed — Mon, 26 Dec 2022 10:07:13 GMT

Warnings are good!

Re: Close for non-use warning, question.

Aim_High — Tue, 27 Dec 2022 15:48:16 GMT

Either way, or whether it's a 'trick' by lenders to encourage further usage, I appreciate the "heads up" that the card may be closed. The reminder is a nice and professional gesture, IMO. I believe I've mainly had retail/store cards that closed without any advance notice and oddly enough, some of them didn't even advise me after they were closed. That's one reason I divested myself of store cards, since sometimes I would pull one out to go use it and find out it was closed at the checkout register. Annoying, plus a little embarrassing to present an invalid form of payment. On the other hand, I believe my major bank cards have nearly always told me if the lack of usage was leading towards a closure.

Re: Close for non-use warning, question.

SweetCreditObsession — Tue, 27 Dec 2022 06:44:18 GMT

Agreed, @tcbofade

Re: Close for non-use warning, question.

SweetCreditObsession — Tue, 27 Dec 2022 06:46:14 GMT

@Aim_High, that's certainly a shocking way to learn of a card's closure. I have to agree that a warning letter I'd mich better!

Re: Close for non-use warning, question.

pizzadude — Tue, 27 Dec 2022 15:21:31 GMT

I agree with others that it's a nice gesture for a creditor to let you know in advance if a card's going to be closed for inactivity.

I've had cards shutdown with no notice in the past from creditors ( including Barclay ) and while for me the impact was minimal, it certainly possible that if one were to lose a large credit limit it could result in overall increased revolving utilization and a negative FICO score impact.

Re: Close for non-use warning, question.

tcbofade — Tue, 27 Dec 2022 16:45:50 GMT

@Aim_High wrote:
since sometimes I would pull one out to go use it and find out it was closed at the checkout register.

^ This.

It's never happened to me, but it did happen to a close friend while I was with him.

Friend was mortified, and cashier happily offered to have him apply for a new account... My friend said things that he probably should not have said to the poor cashier (it wasn't the cashiers fault...), but we left that day without making a purchase.

Re: Close for non-use warning, question.

805orbust — Wed, 28 Dec 2022 11:59:22 GMT

@tcbofade that sucks but... dang, just give em another card. 🤣

Re: Close for non-use warning, question.

Remedios — Wed, 28 Dec 2022 20:39:55 GMT

It's great when issuer let's you know, but do you guys really believe it's their responsibility to tell you to use something you asked for?

If one doesn't care enough to use a card every so often or even check account for fraud, why it's someone else's responsibility to babysit your account?

Legit question, not a snark. I'm genuinely curious as to how this line of thinking develops.

Re: Close for non-use warning, question.

Anonymous — Wed, 28 Dec 2022 22:07:05 GMT

@Remedios wrote:

If one doesn't care enough to use a card every so often or even check account for fraud, why it's someone else's responsibility to babysit your account?

As a professional non-user, I think these are different things. I can check the transaction record every day/week/month/era-change and still not know when the issuer is thinking of pulling the plug.

But ideally, the issuer would warn when something in their data suggests that the relationship could become profitable again for them, and that the warning might act as a nudge.

So I agree it's obviously not their responsibility, but in certain cases it may be to their advantage. In the case of my Barclays card, I don't think it is!

Re: Close for non-use warning, question.

Aim_High — Wed, 28 Dec 2022 22:34:46 GMT

@Remedios wrote:
It's great when issuer let's you know, but do you guys really believe it's their responsibility to tell you to use something you asked for?

If one doesn't care enough to use a card every so often or even check account for fraud, why it's someone else's responsibility to babysit your account?

Legit question, not a snark. I'm genuinely curious as to how this line of thinking develops.

I agree it's not their responsibility to remind me to use the card. However, at the same time, I see a credit approval as establishing a business relationship and contract between myself and the lender. It would just be common courtesy to notify the other party about changes to that contract, if nothing else after-the-fact when the account was closed. But in advance would be nice unless there is an abrogation of the contract by the consumer, such as failure to pay.

Notifying-in-advance shows that the lender cares about maintaining the relationship, appreciates the satisfactory past business, and respects the consumer's time (and invested credit inquiries and new account FICO penalties) when they initiated the relationship by applying for credit. Not notifying in advance (and then inviting the customer to just reapply! as happened above to @tcbofade's friend) seems disrespectful to me of the consumer's credit report and time.

My experience is more about retail/store cards which seem to be closed more quickly. It's easy to forget exactly how long it's been since some cards were used, and many consumers don't know cards will be closed if not used often. Moreover, there is no standard on how long cards will stay open if not used. Of course, it also doesn't help that some of these cards get opened in the spur of the moment applications in-store to save on a purchase. So they aren't exactly a premeditated decision in the first place. This is why I recommend that the usefulness of a retail/store card be very carefully considered before applying.

For the fraud aspect, some of my experience with these is more from the days when online/app access wasn't universally available on credit accounts, snail mail statements were how accounts were monitored (no action on consumers part except opening mail!), and credit card fraud was much less prevalent.

Re: Close for non-use warning, question.

Anonymous — Wed, 28 Dec 2022 22:58:11 GMT

@Aim_High wrote:
@Remedios wrote:
It's great when issuer let's you know, but do you guys really believe it's their responsibility to tell you to use something you asked for?

If one doesn't care enough to use a card every so often or even check account for fraud, why it's someone else's responsibility to babysit your account?

Legit question, not a snark. I'm genuinely curious as to how this line of thinking develops.
I agree it's not their responsibility to remind me to use the card. However, at the same time, I see a credit approval as establishing a business relationship and contract between myself and the lender. It would just be common courtesy to notify the other party about changes to that contract, if nothing else after-the-fact when the account was closed. But in advance would be nice unless there is an abrogation of the contract by the consumer, such as failure to pay.

Notifying-in-advance shows that the lender cares about maintaining the relationship, appreciates the satisfactory past business, and respects the consumer's time (and invested credit inquiries and new account FICO penalties) when they initiated the relationship by applying for credit. Not notifying in advance (and then inviting the customer to just reapply! as happened above to @tcbofade's friend) seems disrespectful to me of the consumer's credit report and time.

Right, but I feel sometimes on MyFico we (naturally enough) are too onesided, adopting only the consumer view. Many of us S/D cards with at most "keep alive" small purchases every few months. Isn't this also somewhat disrespectful of the implied contract? Should issuers insist on a minimum spend to keep the relationship alive (personally, I think this would make a lot of sense!) But until we have to inform issuers about our intent to change our spending pattern, I think it is perfectly reasonable for them to close cards without notice.

Given a major reason for some apps is "padding for util", that's not exactly a good-faith relationship!

Re: Close for non-use warning, question.

FinStar — Wed, 28 Dec 2022 23:16:25 GMT

@Remedios wrote:
It's great when issuer let's you know, but do you guys really believe it's their responsibility to tell you to use something you asked for?

If one doesn't care enough to use a card every so often or even check account for fraud, why it's someone else's responsibility to babysit your account?

Legit question, not a snark. I'm genuinely curious as to how this line of thinking develops.

Exactly.

Regardless of what views may exist on a financial institution's perception of 'courtesy', most consumers do not carry the number of cards that are showcased by the members posting on this specific thread. We all know the average number of credit cards (retail or otherwise) that folks carry outside of this sphere. And, while some financial institutions may go above and beyond to remind customers of 'using' their card whether it's due to any upcoming promotions or lack of activity, it's still not the financial institution's obligation to do so. I mean, having 10+ CCs is one's choice not a financial institution to manage or tag reminders for having that many CCs and forgetting to use one periodically. Moreover, it's not spelled out in the CCA that periodic reminders are part of an accountholders contract or any account maintenance.

Re: Close for non-use warning, question.

Remedios — Wed, 28 Dec 2022 23:25:52 GMT

@Anonymous wrote:
@Remedios wrote:

If one doesn't care enough to use a card every so often or even check account for fraud, why it's someone else's responsibility to babysit your account?

As a professional non-user, I think these are different things. I can check the transaction record every day/week/month/era-change and still not know when the issuer is thinking of pulling the plug.

But ideally, the issuer would warn when something in their data suggests that the relationship could become profitable again for them, and that the warning might act as a nudge.

So I agree it's obviously not their responsibility, but in certain cases it may be to their advantage. In the case of my Barclays card, I don't think it is!

They are different things, but if one checked their account, perhaps they would notice it's closed instead of finding out at the register.

Wouldn't stop all the surprises, but still.

Re: Close for non-use warning, question.

Remedios — Thu, 29 Dec 2022 00:10:55 GMT

@Aim_High wrote:
@Remedios wrote:
It's great when issuer let's you know, but do you guys really believe it's their responsibility to tell you to use something you asked for?

If one doesn't care enough to use a card every so often or even check account for fraud, why it's someone else's responsibility to babysit your account?

Legit question, not a snark. I'm genuinely curious as to how this line of thinking develops.
I agree it's not their responsibility to remind me to use the card. However, at the same time, I see a credit approval as establishing a business relationship and contract between myself and the lender. It would just be common courtesy to notify the other party about changes to that contract, if nothing else after-the-fact when the account was closed. But in advance would be nice unless there is an abrogation of the contract by the consumer, such as failure to pay.

Notifying-in-advance shows that the lender cares about maintaining the relationship, appreciates the satisfactory past business, and respects the consumer's time (and invested credit inquiries and new account FICO penalties) when they initiated the relationship by applying for credit. Not notifying in advance (and then inviting the customer to just reapply! as happened above to @tcbofade's friend) seems disrespectful to me of the consumer's credit report and time.

My experience is more about retail/store cards which seem to be closed more quickly. It's easy to forget exactly how long it's been since some cards were used, and many consumers don't know cards will be closed if not used often. Moreover, there is no standard on how long cards will stay open if not used. Of course, it also doesn't help that some of these cards get opened in the spur of the moment applications in-store to save on a purchase. So they aren't exactly a premeditated decision in the first place. This is why I recommend that the usefulness of a retail/store card be very carefully considered before applying.

For the fraud aspect, some of my experience with these is more from the days when online/app access wasn't universally available on credit accounts, snail mail statements were how accounts were monitored (no action on consumers part except opening mail!), and credit card fraud was much less prevalent.

Well...don't you think if issuing retail cards is your only revenue source, you'd want to issue them to those who will use them while under impression consumer applied because they frequent "their" store?

When Comenity still allowed shopping card trick, people applied for Childrens Place card. No kids, no intention of buying for friends/relatives, but hey...it's credit line.

Or, *Approved for Banana Republic, what do they sell"

For a lot of members here, they are just utilization padding, nothing else.

Then, there are stores like Lowe's. While some got their card for initial discount/promo financing, are we really supposed to believe they needed nothing else over the past year. It's not like they only sell lumber 🤷‍♀️

While this may not be the case for you, one of the primary reasons I asked is...People are mad that cards got closed for non-use. Yet, they seldom forget to ask for increases then wonder why Synchrony closed accounts..

Big lenders who have a chunky credit card portfolios tend to have other, more lucrative departments (DDAs, investments, mortgages, auto loans, PLs etc) so they might be a tad bit slower at use it or lose it.

Same goes for CUs, their focus is rarely on CCs, so some tolerate longer periods of inactivity.

Those who solely depend on CC revenue don't have that option. They can make a silly choice to waste time on reminders or pick a new batch of applicants who will use their cards.

I get a nudge from FNBO after 60 days "hey you haven't used your card, look at all the benefits" which is a polite way of telling me to take it out of wallet.

Then at around 120 days, they nip with "we noticed you haven't used your card in OVER 120 days..." Umm, wonder what they mean by that

Besides, one thing I've learned is that if you constantly have to remind someone to do something, there is a pretty darn good chance it isn't forgetfulness, it's unwillingness.

Re: Close for non-use warning, question.

FinStar — Thu, 29 Dec 2022 00:23:06 GMT

@Remedios wrote:
@Aim_High wrote:
@Remedios wrote:
It's great when issuer let's you know, but do you guys really believe it's their responsibility to tell you to use something you asked for?

If one doesn't care enough to use a card every so often or even check account for fraud, why it's someone else's responsibility to babysit your account?

Legit question, not a snark. I'm genuinely curious as to how this line of thinking develops.
I agree it's not their responsibility to remind me to use the card. However, at the same time, I see a credit approval as establishing a business relationship and contract between myself and the lender. It would just be common courtesy to notify the other party about changes to that contract, if nothing else after-the-fact when the account was closed. But in advance would be nice unless there is an abrogation of the contract by the consumer, such as failure to pay.

Notifying-in-advance shows that the lender cares about maintaining the relationship, appreciates the satisfactory past business, and respects the consumer's time (and invested credit inquiries and new account FICO penalties) when they initiated the relationship by applying for credit. Not notifying in advance (and then inviting the customer to just reapply! as happened above to @tcbofade's friend) seems disrespectful to me of the consumer's credit report and time.

My experience is more about retail/store cards which seem to be closed more quickly. It's easy to forget exactly how long it's been since some cards were used, and many consumers don't know cards will be closed if not used often. Moreover, there is no standard on how long cards will stay open if not used. Of course, it also doesn't help that some of these cards get opened in the spur of the moment applications in-store to save on a purchase. So they aren't exactly a premeditated decision in the first place. This is why I recommend that the usefulness of a retail/store card be very carefully considered before applying.

For the fraud aspect, some of my experience with these is more from the days when online/app access wasn't universally available on credit accounts, snail mail statements were how accounts were monitored (no action on consumers part except opening mail!), and credit card fraud was much less prevalent.
Well...don't you think if issuing retail cards is your only revenue source, you'd want to issue them to those who will use them while under impression consumer applied because they frequent "their" store?

When Comenity still allowed shopping card trick, people applied for Childrens Place card. No kids, no intention of buying for friends/relatives, but hey...it's credit line.
Or, *Approved for Banana Republic, what do they sell"
For a lot of members here, they are just utilization padding, nothing else.

Then, there are stores like Lowe's. While some got their card for initial discount/promo financing, are we really supposed to believe they needed nothing else over the past year. It's not like they only sell lumber 🤷‍♀️

While this may not be the case for you, one of the primary reasons I asked is...People are mad that cards got closed for non-use. Yet, they seldom forget to ask for increases then wonder why Synchrony closed accounts..
Big lenders who have a chunky credit card portfolios tend to have other, more lucrative departments (DDAs, investments, mortgages, auto loans, PLs etc) so they might be a tad bit slower at use it or lose it.
Same goes for CUs, their focus is rarely on CCs, so some tolerate longer periods of inactivity.
Those who solely depend on CC revenue don't have that option. They can make a silly choice to waste time on reminders or pick a new batch of applicants who will use their cards.

I get a nudge from FNBO after 60 days "hey you haven't used your card, look at all the benefits" which is a polite way of telling me to take it out of wallet.
Then at around 120 days, they nip with "we noticed you haven't used your card in OVER 120 days..." Umm, wonder what they mean by that

Besides, one thing I've learned is that if you constantly have to remind someone to do something, there is a pretty darn good chance it isn't forgetfulness, it's unwillingness.

I was just about to apply for the Victoria's Secret MC cuz your neighbor recommended it -- you know that whole gifting thing 💀

I'll be upset if they close it for my forgetfulness to use it.