I'm very curious to know if anyone else has received letters from banks /credit cards informing them that the account will be closed due to inactivity. I never knew they could just close your account for that reason. How does this in turn affect credit scores? Well this year I have received two letters from different banks stating just that. Another letter informed me that the bank transferred 90% of my credit limit from one platinum card to the new card I just received; therefore instead of giving me more credit they just split the amount I already had between my two accounts. With the dollar on the decline and all the talk about all these market bubbles getting ready to burst again there is definitely something weird going on and the banks are taking lots of precautions. I just find it so strange that they would close the account. It's like they are forcing us to use it or lose it and that's unfortunate because I know a lot of people that just have credit cards in case of an emergency. I personally like to use them when I travel and for the travel rewards and for purchasing anything online.
I hope this is useful information to everyone, if you have any credit card with a large limit that you don't want to lose consider using it at least once during the year.
I've had this happen - this is why I try to use each card once a year, even for a small purposes. Upvoted and followed.
Thanks! I had no idea they could do that. I have several cards that I haven't used in over 5 years and I haven't had any problems, they always send me new cards when the old ones expire. The two that closed were fairly new accounts about 3 years old so it was a bit of a surprise.
I think it coincides with the economy beast monster bubble that's about to burst. The banks limiting people in this moment so they can capitalize on upcoming opportunities. Like @thoughtpower said, got to use the credit cards for tiny purchases to keep them active. You know the banks want to get paid...
Yes, I will be using them here and there now that I know they can do this.