topic Re: Preventing CCs from closing? in General Credit Topics

Preventing CCs from closing?

Anonymous — Sat, 28 Apr 2012 04:36:12 GMT

Hi all,

I have been lurking a little bit around these forums and thought I'd ask a question. I have very good credit now and am trying to make sure to keep my credit score high, specifically in hopes of a house by this time next year. My biggest concern is my credit ratio/ utilization & keeping that low. I had one of my longest-held credit cards close my account last year b/c I hadn't used it in a few years and I am worried that this might happen with one of my other cards. I have 2 citibank accounts that get good use (and paid off) and a 3rd that I dont use but want to keep b/c of its high balance--for emergencies, a capital one account that hasn't been used in about a year, a BofA acct that hasn't been used in probably 2-3 years, ditto for Macys, and some other store-specific cards that havent been used in probably 5-10. Any tips on how to prevent them from being closed out from under me? I could use them once a year if that would guarantee it wouldn't be closed, but I dont want to if that won't prevent it, or if that is not necessary to make sure they stay open. Any tips for this situation?

Thanks!

Re: Preventing CCs from closing?

webhopper — Sat, 28 Apr 2012 05:38:22 GMT

@Anonymous wrote:
Hi all,
I have been lurking a little bit around these forums and thought I'd ask a question. I have very good credit now and am trying to make sure to keep my credit score high, specifically in hopes of a house by this time next year. My biggest concern is my credit ratio/ utilization & keeping that low. I had one of my longest-held credit cards close my account last year b/c I hadn't used it in a few years and I am worried that this might happen with one of my other cards. I have 2 citibank accounts that get good use (and paid off) and a 3rd that I dont use but want to keep b/c of its high balance--for emergencies, a capital one account that hasn't been used in about a year, a BofA acct that hasn't been used in probably 2-3 years, ditto for Macys, and some other store-specific cards that havent been used in probably 5-10. Any tips on how to prevent them from being closed out from under me? I could use them once a year if that would guarantee it wouldn't be closed, but I dont want to if that won't prevent it, or if that is not necessary to make sure they stay open. Any tips for this situation?

Thanks!

Many people with a lot of card rotate them... As in, all but one sit in the sock drawer and that one gets used for a month, then it goes into the sock drawer and another one comes out... Typically if you use the card once or twice every six months it won't get closed.

I would take all those cards, and go to the conveience store now, and buy a pack of gum with all of them, and immediately send payment for the purchase.

For the store cards, buy an inexpensive item that you actually need, like undies or socks...

Edited after reconsideration.

Re: Preventing CCs from closing?

MarineVietVet — Sat, 28 Apr 2012 05:18:06 GMT

@webhopper wrote:

Many people with a lot of card rotate them... As in, all but one sit in the sock drawer and that one gets used for a month, then it goes into the sock drawer and another one comes out... Typically if you use the card once or twice every six months it won't get closed.

I would take all those cards, and go to the conveience store now, and buy a pack of gum with all of them, and immediately send payment for the purchase.

For the store cards, buy an item and then return it...

Would it not be unethical and less than honest to buy something that you know from the beginning you don't intend to keep?

Re: Preventing CCs from closing?

Anonymous — Sat, 28 Apr 2012 05:24:33 GMT

Thank you for the suggestions. I hadn't thought about a rotation system. At least for small purchases. Some of those cards have huge interests rates that I cant get down and would be terrified that I might accidentally leave a balance!

Re: Preventing CCs from closing?

MarineVietVet — Sat, 28 Apr 2012 05:29:28 GMT

@Anonymous wrote:
Hi all,
I have been lurking a little bit around these forums and thought I'd ask a question. I have very good credit now and am trying to make sure to keep my credit score high, specifically in hopes of a house by this time next year. My biggest concern is my credit ratio/ utilization & keeping that low. I had one of my longest-held credit cards close my account last year b/c I hadn't used it in a few years and I am worried that this might happen with one of my other cards. I have 2 citibank accounts that get good use (and paid off) and a 3rd that I dont use but want to keep b/c of its high balance--for emergencies, a capital one account that hasn't been used in about a year, a BofA acct that hasn't been used in probably 2-3 years, ditto for Macys, and some other store-specific cards that havent been used in probably 5-10. Any tips on how to prevent them from being closed out from under me? I could use them once a year if that would guarantee it wouldn't be closed, but I dont want to if that won't prevent it, or if that is not necessary to make sure they stay open. Any tips for this situation?

Thanks!

Hi there.

What I use most of my cards for is to autopay recurring monthly expenses that have to be paid anyway. One pays the cable bill, one the electric bill, another the XM Radio, etc. That way they are all used to show activity and I don't have to worry about any of them being closed because I forgot to pull one of them out.

I pay the charges as soon as they show up on the online accounts. I have done this for several years and it works very well for me.

Re: Preventing CCs from closing?

Anonymous — Sat, 28 Apr 2012 05:32:01 GMT

Also a very good idea. I only have 2 bills that I can pay with CCs, but I could still set up autopay with them -- and then automatically pay the credit cards for the same amount. Great idea, thanks!

Re: Preventing CCs from closing?

webhopper — Sat, 28 Apr 2012 05:37:06 GMT

@MarineVietVet wrote:
@webhopper wrote:

Many people with a lot of card rotate them... As in, all but one sit in the sock drawer and that one gets used for a month, then it goes into the sock drawer and another one comes out... Typically if you use the card once or twice every six months it won't get closed.

I would take all those cards, and go to the conveience store now, and buy a pack of gum with all of them, and immediately send payment for the purchase.

For the store cards, buy an item and then return it...
Would it not be unethical and less than honest to buy something that you know from the beginning you don't intend to keep?

Ooh I didn't consider that... I agree that it would be, Ok, i take that back about returning the item... In that case, just buy socks or undies. or something that you can actually use. ...

I bought pantyhose with my inactive store card after reading these forums...

Re: Preventing CCs from closing?

webhopper — Sat, 28 Apr 2012 05:41:49 GMT

Would it not be unethical and less than honest to buy something that you know from the beginning you don't intend to keep?

Sometimes I buy things not knowing if they will fit or not but that looks like it would be great to wear, and I'm limited on time generally in my daily life, I don't have time to try it on in the store. So I buy it, hang onto the reciept... and when I want to wear something nice. I try it on and if it fits I keep, if not I return. Is that unethical?

Re: Preventing CCs from closing?

MarineVietVet — Sat, 28 Apr 2012 05:47:23 GMT

@webhopper wrote:

Would it not be unethical and less than honest to buy something that you know from the beginning you don't intend to keep?
Sometimes I buy things not knowing if they will fit or not but that looks like it would be great to wear, and I'm limited on time generally in my daily life, I don't have time to try it on in the store. So I buy it, hang onto the reciept... and when I want to wear something nice. I try it on and if it fits I keep, if not I return. Is that unethical?

IMO the key words to consider are you know from the beginning you don't intend to keep

Re: Preventing CCs from closing?

Brian_Trying_700 — Sat, 28 Apr 2012 05:56:35 GMT

Just saying. I bought a dish towel off Macys.com. Any card you have....Make it a point and buy 2-3 times a years and PIF.

Re: Preventing CCs from closing?

webhopper — Sat, 28 Apr 2012 06:00:08 GMT

@MarineVietVet wrote:
@webhopper wrote:

Would it not be unethical and less than honest to buy something that you know from the beginning you don't intend to keep?
Sometimes I buy things not knowing if they will fit or not but that looks like it would be great to wear, and I'm limited on time generally in my daily life, I don't have time to try it on in the store. So I buy it, hang onto the reciept... and when I want to wear something nice. I try it on and if it fits I keep, if not I return. Is that unethical?
IMO the key words to consider are you know from the beginning you don't intend to keep

Ahh I see Thanks... ya I've never done that. I don't mind returning things but I never considered whether it was wrong to buy something that you knew you would return. I just considered that if you returned it fairly fast it didn't hurt the store financially.

Re: Preventing CCs from closing?

Lel — Sat, 28 Apr 2012 06:25:08 GMT

@webhopper wrote:
@MarineVietVet wrote:
@webhopper wrote:

Would it not be unethical and less than honest to buy something that you know from the beginning you don't intend to keep?
Sometimes I buy things not knowing if they will fit or not but that looks like it would be great to wear, and I'm limited on time generally in my daily life, I don't have time to try it on in the store. So I buy it, hang onto the reciept... and when I want to wear something nice. I try it on and if it fits I keep, if not I return. Is that unethical?
IMO the key words to consider are you know from the beginning you don't intend to keep

Ahh I see Thanks... ya I've never done that. I don't mind returning things but I never considered whether it was wrong to buy something that you knew you would return. I just considered that if you returned it fairly fast it didn't hurt the store financially.

There are certain item that, when returned, cannot be sold as new again. Some stores have resorted to charging restocking fees because of excessive returns, but other stores absorb the cost. Well, not really - the cost is eventually passed on to other consumers. So maybe the store isn't getting hurt, but it does affect everyone else.

Re: Preventing CCs from closing?

webhopper — Sat, 28 Apr 2012 16:55:12 GMT

Ahh I see Thanks... ya I've never done that. I don't mind returning things but I never considered whether it was wrong to buy something that you knew you would return. I just considered that if you returned it fairly fast it didn't hurt the store financially.
There are certain item that, when returned, cannot be sold as new again. Some stores have resorted to charging restocking fees because of excessive returns, but other stores absorb the cost. Well, not really - the cost is eventually passed on to other consumers. So maybe the store isn't getting hurt, but it does affect everyone else.

Perhaps you are right, I thought the restocking fees were mainly for high-end electronics. I've never worked retail before... What type of items cannot be restocked?

The main thing I ever returned were jeans, slacks, and tops. I shop at Macy's, JC Penny and New York and Co. I can't see myself trying these things on in the store, because when I wear them its for church and I have pantyhose and nice dress shoes on. Slacks fit differently when you wear hose and heels than if you're in store wearing tennis shoes. The main thing I look for at home is to make sure that the inseam is the right length with my heels and that there aren't any underwear lines in the butt. When i shop its in sweat pants and tennis shoes and its usually because I'm pressed for time, and have something coming up that I need something nicer to wear to. Otherwise I wear steel toe boots and work uniform shirts with jeans everyday.

When I'm running errands I wear same, because I don't have time to go home and change usually after work. I work from 7 am to about 5:30 PM M-F, I work Saturdays and sometimes Sundays after church. Between fixing meals, straightening the house, running my kid to and from gymnastics and cheerleading... there's just no way I've got the kind of time required to make sure that every purchase fits just right in the store and will work for the function its intended. And my fiance will not shop with me, he's disabled and hates shopping... sitting on that bench outside the fitting room locks up his back. Also, I want to make sure that he likes whatever it is that I bought so I would rather put it on at home and ask his opinion. I would say on average I return about 25% of clothing that is purchased. I don't know if that's high, or average or what...

I actually hate shopping, and if it wasn't for the fact that I knew I could return things that didn't fit or that didn't look good on me, I'd never shop. My clothing budget for the year is about $1000 bucks, so I want to make sure that everything that I get for the money is exactly what I need and does the job that its supposed to do.

Re: Preventing CCs from closing?

Anonymous — Sun, 01 Jul 2012 22:11:27 GMT

Just in case anyone else is looking on how to deal with this issue -- what I did was set up autopayments for some of my monthly fixed expenses (netflix, storage, etc.) with those credit cards & then set up my bank account to pay those cards that same amount each month. I don't know of a way to just set my bank account to pay the outstanding balance on the cards, so it had to be an amount that I would already know to be accurate.

So, now each month those cards get used and paid off and I dont have to do anything. Thanks for the suggestions!

Re: Preventing CCs from closing?

AndySoCal — Tue, 03 Jul 2012 03:14:49 GMT

The other problem with the return advice is stores track purchases and returns on account. Doing the return advice could lead to them closing the account.