topic Re: Question about no activity in Credit Cards

Question about no activity

jeffery581 — Sun, 08 Jan 2012 01:01:35 GMT

Do I need to charge a small item every month to keep credit cards active or does the payment keep it active alone? Thank you very much.

Re: Question about no activity

MarineVietVet — Sun, 08 Jan 2012 01:03:53 GMT

@jeffery581 wrote:
Do I need to charge a small item every month to keep credit cards active or does the payment keep it active alone? Thank you very much.

I'm not sure what you're asking. Do you mean does it count as activity if you are paying off a CC balance? If so then yes that's counted as activity and no additional charges need to be made during the month.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

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

Re: Question about no activity

CS800 — Sun, 08 Jan 2012 01:05:46 GMT

@MarineVietVet wrote:
@jeffery581 wrote:

I'm not sure what you're asking. Do you mean does it count as activity if you are paying off a CC balance? If so then yes that's counted as activity and no additional charges need to be made during the month.

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

+ 1.

Say you have $1000 that you're paying off everymonth ($100/month), then this is counted as activity, no other expenses needed.

Re: Question about no activity

jeffery581 — Sun, 08 Jan 2012 01:11:26 GMT

Yes. I am paying down a card. So the payment is activity.

I don't want to be closed for inactivity also. And that is no payment or charge during that cycle?

The account being closed just various form issuer as to how many cycles can have no activity I guess.

Thanks.

Re: Question about no activity

android01 — Sun, 08 Jan 2012 01:17:22 GMT

I've recently been watching how accounts report and even if the the balance is zero every month, if there was activity on the card, it is noted on my credit reports. The BIG exception to this is AMEX. I recently got a scorewatch alert on one of my AMEX's where I left a small balance that reported. The alert indicated that this card hadn't had any activity on it in a year, which of course wasn't true. I looked at my other AMEX history and it indicated no use in the past six months (since i let small balance report) which wasn't true either. I guess it depends on the lender, but all of my other accounts update activity even though they report zero each month.

Re: Question about no activity

MarineVietVet — Sun, 08 Jan 2012 01:18:18 GMT

@jeffery581 wrote:
Yes. I am paying down a card. So the payment is activity.

I don't want to be closed for inactivity also. And that is no payment or charge during that cycle?

The account being closed just various form issuer as to how many cycles can have no activity I guess.

Thanks.

I personally wouldn't go longer than 2-3 months on most cards without some activity. But store cards seem to be more forgiving. Several times I've gone almost a year on my Best Buy card with no closure but I don't know how close I was cutting it.

But this is just my experience. That doesn't mean your experience will be the same.

Re: Question about no activity

pizzadude — Sun, 08 Jan 2012 02:10:21 GMT

I would be very suprised if CCs would close your account down for inactivity if you are paying down a balance, and not charging any new stuff on your card.

Not to say that they wouldn't close your account for other reasons, like Collections, Lates on other accounts, etc...

Re: Question about no activity

CS800 — Mon, 09 Jan 2012 14:35:47 GMT

I would be surprised if they close an account or even CLD it.

Re: Question about no activity

DonDraper — Mon, 09 Jan 2012 14:16:24 GMT

Just a day or two ago I was looking at the terms & conditions of the Barclaycard Rewards MC. and saw something I've never, ever seen in a CC's T&C before (BOLD mine):

In order to receive your new Barclaycard Rewards World MasterCard and to earn and redeem points, we do require that your account be open and in good standing, you maintain creditworthiness, and that there is regular use of your credit card account. Account inactivity, which might include 3 months or longer of non-use of the credit card account, the failure to maintain your account in good standing, and/or changes to your creditworthiness may, at our option, result in account closure which in turn will result in the forfeiture of the unredeemed points you have earned.

I've never seen a creditor state it in such precise terms. Or at all, come to think of it.

Re: Question about no activity

CS800 — Mon, 09 Jan 2012 14:37:02 GMT

@DonDraper wrote:
Just a day or two ago I was looking at the terms & conditions of the Barclaycard Rewards MC. and saw something I've never, ever seen in a CC's T&C before (BOLD mine):

In order to receive your new Barclaycard Rewards World MasterCard and to earn and redeem points, we do require that your account be open and in good standing, you maintain creditworthiness, and that there is regular use of your credit card account. Account inactivity, which might include 3 months or longer of non-use of the credit card account, the failure to maintain your account in good standing, and/or changes to your creditworthiness may, at our option, result in account closure which in turn will result in the forfeiture of the unredeemed points you have earned.

I've never seen a creditor state it in such precise terms. Or at all, come to think of it.

Het at least they stated it clearly as you said.

Re: Question about no activity

DonDraper — Mon, 09 Jan 2012 14:48:18 GMT

@CS800 wrote:
@DonDraper wrote:
Just a day or two ago I was looking at the terms & conditions of the Barclaycard Rewards MC. and saw something I've never, ever seen in a CC's T&C before (BOLD mine):

In order to receive your new Barclaycard Rewards World MasterCard and to earn and redeem points, we do require that your account be open and in good standing, you maintain creditworthiness, and that there is regular use of your credit card account. Account inactivity, which might include 3 months or longer of non-use of the credit card account, the failure to maintain your account in good standing, and/or changes to your creditworthiness may, at our option, result in account closure which in turn will result in the forfeiture of the unredeemed points you have earned.

I've never seen a creditor state it in such precise terms. Or at all, come to think of it.
Het at least they stated it clearly as you said.

Yup. At least one company doesn't unnecessarily make the whole thing a game of chicken.

Re: Question about no activity

Anonymous — Mon, 09 Jan 2012 15:03:09 GMT

By the way, this veers slightly off the topic of paying down a credit balance and having it count as activity, but:

Twice recently a CSR (or a credit analyst, in one case) has said or implied that an account appeared "inactive" even though I used the accounts in question but paid the balances off before the statement date.

In the first case, a USAA representative said, "I see you don't use card X... Oh, well, you used it but paid it before the statement date."

In the second case, a Chase credit analyst said she did not see that I had any accounts with Chase, and then when prompted, said, "I see it but it looks like an inactive account." When I said that I had used it just the previous month but paid it off, she didn't have much to say about it.

I got the impression from both of these conversations that it may be regarded negatively in some contexts when credit accounts are used as fancy debit conduits (used and then paid very quickly.) Do credit card issuers have a strong preference that statements generate with a balance showing?

Re: Question about no activity

pizzadude — Mon, 09 Jan 2012 15:16:17 GMT

-----> Do credit card issuers have a strong preference that statements generate with a balance showing?

Yes, they do ~ they want to make money ( interest ) from you, and the only chance they have to do that is if you actually let a balance show. There is probably a bug somewhere in their systems that makes an account that is PIF before statement date look like an inactive account......

Re: Question about no activity

Anonymous — Mon, 09 Jan 2012 15:24:00 GMT

Of course, it only makes sense that they would want to make money (via interest.) But it seems that if you carry a balance and pay interest, you're seen as a credit risk for being indebted. I've heard over and over here that great credit scores are generated by carrying no balances, and even by paying before statement dates so that rows of zeros (with at least some exception, so there is some utilization) appear on a credit report.

I realize that what makes for a good credit score is not necessarily what an individual creditor likes, but what do creditors really like:

1. People who pay before statement dates (I assume they aren't crazy about this)

2. People who pay off each statement balance in full every month (no interest is made this way but I understand they like this...?), or

3. People who carry balances, maybe balances that don't appear "dangerous," and pay lots of interest to the card issuer

???

Re: Question about no activity

CS800 — Mon, 09 Jan 2012 15:48:29 GMT

Well great info. So that could mean that all my PIFs are not effective? I always thought companies like to see a blaance carfied forward but if one PIF it shows ability to pay.

I wonder if this could affect my CLI with AMEX or Chace or Discover for that matter.

Re: Question about no activity

Anonymous — Mon, 09 Jan 2012 15:58:04 GMT

@CS800 wrote:
Well great info. So that could mean that all my PIFs are not effective? I always thought companies like to see a blaance carfied forward but if one PIF it shows ability to pay.

I wonder if this could affect my CLI with AMEX or Chace or Discover for that matter.

It has no impact on the possibility of CLI.

Each lender has its own internal records of your peticular behavior.

All statements show the activity on accounts including multiple payments in the same billing cycle.

EDITED TO ADD: Just because you pay your card in full before the statement hits or when the statement hits does not mean the CC companies are not making money on you. Every time you swipe your card the company is making money on you. Although making interest and penalty charges would generate more money it does not necessarily mean the company likes your business better.

Re: Question about no activity

RockinRay — Mon, 09 Jan 2012 15:56:45 GMT

@Anonymous wrote:
@CS800 wrote:
Well great info. So that could mean that all my PIFs are not effective? I always thought companies like to see a blaance carfied forward but if one PIF it shows ability to pay.

I wonder if this could affect my CLI with AMEX or Chace or Discover for that matter.
It has no impact on the possibility of CLI.

Each lender has its own internal records of your peticular behavior.

All statements show the activity on accounts including multiple payments in the same billing cycle.

A friend of mine used to work in the industry. If you PIF, you are considered a "Dead Beat"...

Don't ya just love that one!

Ray

Re: Question about no activity

Anonymous — Mon, 09 Jan 2012 16:00:19 GMT

@RockinRay wrote:
@Anonymous wrote:
@CS800 wrote:
Well great info. So that could mean that all my PIFs are not effective? I always thought companies like to see a blaance carfied forward but if one PIF it shows ability to pay.

I wonder if this could affect my CLI with AMEX or Chace or Discover for that matter.
It has no impact on the possibility of CLI.

Each lender has its own internal records of your peticular behavior.

All statements show the activity on accounts including multiple payments in the same billing cycle.
A friend of mine used to work in the industry. If you PIF, you are considered a "Dead Beat"...

Don't ya just love that one!

Ray

I don't disagree that this was the normal attitude they took before every thing went tumbling down. But the last few years IMO have taken a turn and the opposite is the normal now.

Re: Question about no activity

CS800 — Mon, 09 Jan 2012 16:03:35 GMT

@RockinRay wrote:
@Anonymous wrote:
@CS800 wrote:
Well great info. So that could mean that all my PIFs are not effective? I always thought companies like to see a blaance carfied forward but if one PIF it shows ability to pay.

I wonder if this could affect my CLI with AMEX or Chace or Discover for that matter.
It has no impact on the possibility of CLI.

Each lender has its own internal records of your peticular behavior.

All statements show the activity on accounts including multiple payments in the same billing cycle.
A friend of mine used to work in the industry. If you PIF, you are considered a "Dead Beat"...

Don't ya just love that one!

Ray

Catch 22

you pay before statemetn you're a deadbeat

You don't pay you're a deadbeat

Although if you don't pay, they charge you interest plus late fees which benefits them more

Re: Question about no activity

DonDraper — Mon, 09 Jan 2012 16:09:07 GMT

Bank of America just hit me for $1.50 in interest, even though I only charged $54, paid it in full two days later (3 weeks before the statement cut), and the only other balance on my account was a 0% balance transfer of $700. I've pretty much always carried a zero balance, except for this 0% BT the last few months.

So I guess every time I use my card now, I'll be hit with interest, even if I PIF the next day? Yeah, they get you coming and going. They make money off you no matter HOW you slice it. But if this is the way it's going to be, it's cost-prohibitive to use this card at all. Into the sock drawer it goes.