Will your credit cards get cancelled or closed if you never use them?
I have a WHOLE bunch of cards that I haven’t used in a year or two, will they eventually be cancelled or closed out or have their limits lowered or changed orw hatever, because of lack of use, or will they remain the same, but just have a $0 balance on them?
I’m not sure how they work, and if the credit card companies look at you like you’re a horrible customer if you never use your cards.
Is that how it is, or does it have absolutely no effect on you whatsoever?
Tags: cancelled, Cards, closed, Credit, never, Them
Your credit cards will never be closed or cancelled for non use.
You aren’t a horrible customer, you want a deep credit file. That means the length your trade lines (accounts) are open. So I suggest you leave them open.
Visit http://www.annualcreditreport.com for a free copy of your credit reports from all 3 credit bureau companies.
Good luck!
Daniel
credit cards have an experation date…
If you have credit cards open and don’t use them, they will not close but be prepared to get alot of junk mail which is sort of a reminder to you to use the card. Of course if no one is using the card, the balance on it is $0. It depends on your credit card company on the limits, some might raise them to get you to use them. Credit cards like when you use their stuff because like any other business, they aren’t benefiting without that. Your credit record will reflect how many and where you have your credit cards. I suggest if you haven’t used them in more than a couple of years, cancel it now to risk losing or misplacing them. It’s pretty dangerous to lose them nowadays because people have gotten so much more technology savvy.
Whether or not to close the accounts is up to each individual company. Some have policies where they will close inactive accounts, some don’t. Many companies have done this in the past but received negative press for doing so. Keep in mind that for every account the company gives out, they must keep a certain % of the credit line on hand in a special reserve account. That’s a legal obligation. They would much rather hold those funds in the account for cards that are active and are making them money. With the credit crunch happening right now, I wouldn’t be surprised to see more companies start closing the accounts that are not profitable for them.