Best way to avoid Account Closure.

[Anonymous]

So I recently learned that Credit card companies can close accounts due to lack of use. 

I have two Capital One cards that I've recently paid off and plan to never use again, however I also don't want them to be closed because having a lot of open accounts is a good thing.

What's a good way to avoid this for those who have sock-drawered their cards?

[Jnbmom]

You answered your own question, you need to use your cards. A few small purchases every few months should do the trick.

[Remedios]

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@Anonymous wrote:

So I recently learned that Credit card companies can close accounts due to lack of use. 

I have two Capital One cards that I've recently paid off and plan to never use again, however I also don't want them to be closed because having a lot of open accounts is a good thing.

What's a good way to avoid this for those who have sock-drawered their cards?

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By using them. 

Every three months or so seems to be safe, some lenders allow longer period of inactivity, some don't. 

Cap one probably wouldn't close after three months, but if you don't use them for prolonged period of time, you might forget later, so buy a pack of gum.

If you are planning to let them report,set autopay if they are truly sock drawered.

Don't set autopay for due date in case something goes wrong, do it a few days before. 

If you are planning to pay as soon as charge posts, you may not need autopay. 

There is a decent chunk of people who forgot they used SDed card and ended up with lates, that's why I mentioned it. 

Having a lot of accounts isn't necessary a good or bad thing. If you can manage many cards and you have some use for them, it's a good thing. 

It may not be such a good thing if person has to agonize over how to keep them active, monitor for fraud, etc. 

[Taurus22]

@Anonymous   I have cards SD'ed that I schedule to use once every 5 months. I use them usually on the same day for small random purchases so I can plan to pay the small balances when the statements cut. Then it's out of sight, out of mind for 5 more months.  I haven't had any issues with non-use within a 3-mth window, but I don't feel comfortable letting them sit for a full 6 mths, so that's just my own personal rule of thumb.

[TSlop]

Also keep in mind that the CC company may or may not warn you it is going to close a card for inactivity. A long time ago, one of mine warned me one would be closed if I didn't use it within 90 days or something. It was either PNC or BoA, but it's too long ago for me to remember. Even if I knew for a DP, I wouldn't count on that at all, since policies can easily change over time.

[Anonymous]

Hmm. Does it matter when I use them at all? As long as there is activity? Like can I use it, pay it off same day and then wait  another few months all while keeping them at 0% utilization?

[Anonymous]

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@Anonymous wrote:

Hmm. Does it matter when I use them at all? As long as there is activity? Like can I use it, pay it off same day and then wait  another few months all while keeping them at 0% utilization?

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Yep! The issuer will see activity and that is enough to keep the account active and open.

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[Taurus22]

@Anonymous   Might want to give the purchase a day or two to completely post before paying it off. Sometimes they get hung up in "pending".

[MickeyGMoney]

For all the cards I don't use regularly, I add them to my Amazon wallet. Every 3 months I go on and add $.50 from each to my Amazon gift card balance. Those $.50 transactions will usually round up for cash back (like pennies haha) and sometimes even get adjusted off due to being a small balance.

[Anonymous]

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@Taurus22 wrote:

@Anonymous   Might want to give the purchase a day or two to completely post before paying it off. Sometimes they get hung up in "pending".

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Why?   The issuer will still see purchase activity