topic Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions? in Credit Cards

Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

Anonymous — Thu, 04 Nov 2010 01:47:18 GMT

I have currently two credit cards that are not my main cards anymore.

I charge about $30 to $60 on my Amex Blue per month and pay it off in full (CL $12,000)

I charge about $10 to $30 on my PNC card per month and pay it off in full (CL $8000)

These are good accounts with an appropriate age and a good limit. I want to avoid being CLDed or have the companies close my accounts. Especially the Amex I do like. Do you think my current monthly activity is sufficient for that purpose. I used to charge an average monthly amount of $1000 on the Amex and perhaps $600 on the PNC. I haven't done this in about three months. I could charge more on them but then I get more cashback with my BoA card and my seasonal Discover categories.

How have you kept less frequently used CC active? Has it worked or not? I am skeptical that the occasional pack of chewing gum every six months would be sufficient. Tell your story.

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

MarineVietVet — Thu, 04 Nov 2010 01:53:29 GMT

@Anonymous wrote:
I have currently two credit cards that are not my main cards anymore.

I charge about $30 to $60 on my Amex Blue per month and pay it off in full (CL $12,000)
I charge about $10 to $30 on my PNC card per month and pay it off in full (CL $8000)

These are good accounts with an appropriate age and a good limit. I want to avoid being CLDed or have the companies close my accounts. Especially the Amex I do like. Do you think my current monthly activity is sufficient for that purpose. I used to charge an average monthly amount of $1000 on the Amex and perhaps $600 on the PNC. I haven't done this in about three months. I could charge more on them but then I get more cashback with my BoA card and my seasonal Discover categories.

How have you kept less frequently used CC active? Has it worked or not? I am skeptical that the occasional pack of chewing gum every six months would be sufficient. Tell your story.

I use most of my cards to autopay a monthly recurring bill such as water, gas, cable, etc. That way they are used every month and I don't have to think about "What cards need to be used this month"? It works well for me.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

Anonymous — Thu, 04 Nov 2010 18:40:27 GMT

Great idea with the autopay! Our water and elictricity is billed once every three months, though and thus doesn't produce a monthly charge.

I am curious what others have done/experienced?

Is charging a little every month really sufficient to keep a card with a bigger limit active?

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

MarineVietVet — Thu, 04 Nov 2010 18:51:56 GMT

@Anonymous wrote:
Great idea with the autopay! Our water and elictricity is billed once every three months, though and thus doesn't produce a monthly charge.
I am curious what others have done/experienced?
Is charging a little every month really sufficient to keep a card with a bigger limit active?

I can only speak for myself.

My cable bill is $66 a month ($6,500 CL), gas bill about $45 a month ($8,300 CL), XM bill $16 a month ($11,000 CL) and that's all I ever charge on those accounts. I've been doing that a long time. I might get an AA at some point because of it but I'm not concerned.

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

ArisGreek — Thu, 04 Nov 2010 18:56:58 GMT

I honestly don't know if there is any rhyme or reason. Example, my mom has had a AMEX Delta card for a billion years it seems and she has a $19,000 line from what I understand. She only uses about $1-3K a month on average and pays it off. She's never been CLD...My mom's score is also 791 (sigh) so that could be another reason.

She also has a AMEX Gold that she's had since the beginning of time so I bet that helps too.

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

Anonymous — Thu, 04 Nov 2010 20:22:17 GMT

@ArisGreek wrote:
I honestly don't know if there is any rhyme or reason. Example, my mom has had a AMEX Delta card for a billion years it seems and she has a $19,000 line from what I understand. She only uses about $1-3K a month on average and pays it off. She's never been CLD...My mom's score is also 791 (sigh) so that could be another reason.

She also has a AMEX Gold that she's had since the beginning of time so I bet that helps too.

Man, I'd ask to be added as an AU if I were you, 2010 years will really help AAoA!

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

ArisGreek — Thu, 04 Nov 2010 20:43:07 GMT

LOL, 'sho would be haha.

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

Anonymous — Fri, 05 Nov 2010 00:02:31 GMT

@ArisGreek wrote:
... She only uses about $1-3K a month on average and pays it off. She's never been CLD...

I get your point but your mother is charging a lot each month. I was rather curious about how little money charged to an account will keep away trouble.

Marinevietvet, those numbers seem to be reasonable. $60ish+ each month and no trouble for you.

What I am afraid of is that if I only charge a few bucks a month on these cards, this will not be enough for the account provider and they will eventually CLD you.

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

MarineVietVet — Fri, 05 Nov 2010 00:52:34 GMT

@Anonymous wrote:

I get your point but your mother is charging a lot each month. I was rather curious about how little money charged to an account will keep away trouble.

Marinevietvet, those numbers seem to be reasonable. $60ish+ each month and no trouble for you.

What I am afraid of is that if I only charge a few bucks a month on these cards, this will not be enough for the account provider and they will eventually CLD you.

I understand your concern but I don't think anyone can ever be 100% sure that an AA will not happen to them no matter what they do. There are no guarantees in this crazy credit world.

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

Anonymous — Fri, 05 Nov 2010 01:03:35 GMT

@MarineVietVet wrote:

I understand your concern but I don't think anyone can ever be 100% sure that an AA will not happen to them no matter what they do. There are no guarantees in this crazy credit world.

You are right. Who knows in this crazy period where lenders make erratic decisions. Many things in the CC world can be completely willy-nilly. Approvals, denials, CLD...

Anyway, what is "AA"? "account .....??? And since I am already asking, what is DW or DH? They show up often on this forum. Do they mean dear wife / dear husband? I have trouble with acronyms.

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

MarineVietVet — Fri, 05 Nov 2010 01:07:03 GMT

AA= Adverse Action

DW= Dear Wife

DH= Dear Husband

Here are some more Abbreviations.

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

Anonymous — Fri, 05 Nov 2010 01:43:47 GMT

Thanks for posting this. Oh my god, I have to spend the next hour digesting all these acronyms. I feel like an old fogy.

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

haulingthescoreup — Fri, 05 Nov 2010 01:50:32 GMT

fwiw, I have a lot of high-limit cards: $18K on BofA, $27K on USAA (was once $30K before I shifted things around), $10K on another USAA, $20-something K on PenFed, etc etc. I have never had any problem at all with relatively low usage. I have way more credit available in terms of total limits --somewhere in the $150K range --than is justified by either my income or usage. But there it is.

My theory is that if you keep your head down and fly under the radar, they won't notice you, and you'll be fine. In other words, don't call CS.

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

Anonymous — Fri, 05 Nov 2010 01:57:19 GMT

@haulingthescoreup wrote:

My theory is that if you keep your head down and fly under the radar, they won't notice you, and you'll be fine. In other words, don't call CS.

That I will print out, frame and put it up above my bed. Wise words, especially the last part, haha!

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

haulingthescoreup — Fri, 05 Nov 2010 02:03:23 GMT

@Anonymous wrote:
Thanks for posting this. Oh my god, I have to spend the next hour digesting all these acronyms. I feel like an old fogy.

Just to add (don't remember what's on the list), there are also things like DD (dear daughter), DS (dear son), DSILTBIH (dear son-in-law-to-be I hope), and DXH (dear ex-husband.)

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

ArisGreek — Fri, 05 Nov 2010 12:43:43 GMT

LOL @Haulling.

The only acronym I dislike is the YMMV - Your mileage may vary. I never liked that expression. I hear it in the corporate world so much and It irritates me for some reason! It's a corporate-ism Like..."Let's touch base." "Reach out." "Circle back."

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

MidnightVoice — Fri, 05 Nov 2010 13:44:45 GMT

One on my old cards (gas) needed to be used every 6 months otherwise it would be closed.

As for the rest, I put utilities, phone, internet, TV, charitable deductions etc on all of them so I know exactly how much goes out every month. For example, my $8.5K Chase card pays for Netflix and that is all every month! No problem yet

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

Anonymous — Fri, 05 Nov 2010 15:26:12 GMT

Wollepopolle,

Cheers on two accounts. I've often pondered your original question. I wonder if an AA is due to subjectivity or something more like a math equation. If the latter, I'd like to know what's sufficient for stewarding an account that will stay open. If you hear anything outside of this post, please share with me .

Kudos also on asking about the acronyms. I literally spent five minutes on wikipedia and such looking for "AA". Then I saw you asking that question as well haha. Glad to learn, and I had no idea that DH and DW meant Dear Husband and Dear Wife! Thanks for the help Marinevet -sic.-

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

MarineVietVet — Fri, 05 Nov 2010 15:37:55 GMT

@Anonymous wrote:
Wollepopolle,

Cheers on two accounts. I've often pondered your original question. I wonder if an AA is due to subjectivity or something more like a math equation. If the latter, I'd like to know what's sufficient for stewarding an account that will stay open. If you hear anything outside of this post, please share with me .

Kudos also on asking about the acronyms. I literally spent five minutes on wikipedia and such looking for "AA". Then I saw you asking that question as well haha. Glad to learn, and I had no idea that DH and DW meant Dear Husband and Dear Wife! Thanks for the help Marinevet -sic.-

The search option here onsite can be used to find MUCH information. I use it every day it seems like. Just a tip for future thought.

Re: Keeping a CC active? - What activity is sufficient? How to avoid CLD or other unwanted actions?

haulingthescoreup — Fri, 05 Nov 2010 15:44:41 GMT

-- and since we invent a lot of our own abbreviations, I'll bet that wiki hasn't caught up with us yet!