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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: When fraud flags work Date:  6/9/2013  12:09 PM
Author:  aj485 Number:  307061 of 312696

Is my usual weekly download enough to maintain a non-dormant status or do I actually need to make a purchase on each card once or twice a year to prevent being closed for inactivity?

It depends on the credit card company's rules about 'inactivity'. While regular access of the account information is 'activity' that shows that you are still interested in the account, it's 'activity' that only costs the credit card company money - by having to maintain servers to keep the account information, pay credit bureaus to report the information, send you new plastics and account statements, maintain call centers in case you decide to call in, etc. It also exposes the credit card company to the risk that your dormant account will be hacked, and could end up costing them money that way.

Because you aren't making any purchases, which is what would provide the credit card company with revenue to offset these costs, you may end up getting your account(s) closed when card companies are looking at which accounts are least profitable.

This makes me wonder about my cache of "safe dwellers" that get little to no use. I asked y'all about closing them once before and the consensus was to leave them open.

It depends on if you are concerned about your credit score, and if you are planning on getting any additional credit (like a mortgage) in the future. Back in this thread it was suggested that you keep your 'general use' credit cards open so that you would keep your utilization ratio down. However, in order to keep the credit cards as 'active' and counting toward your utilization ratios, some credit card companies require that you actually have purchase activity every so often. So if you are trying to keep these accounts active for the sake of credit reporting/credit scoring, it's probably best that you make at least one purchase every 3 - 6 months or so on your 'safe dwellers'.

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