Chase closing one of our CCs for inactivity

[disneysteve]

I got a notice today that Chase is closing one of our credit cards for inactivity. It hasn't had activity for at least two years, which is true.

What surprised me is the letter also said we can continue to use the card until it closes but using it will not prevent the account from closing. It says nothing about what to do it we want to maintain the account.

I really don't care as, obviously, we never use the account, primarily because when they opened it, they gave me a whopping $500 credit limit. I don't know what the heck they were thinking seeing as our other cards have mid 5-figure credit limits. A $500 credit limit was worthless. As a result, we've never used it.

[97guns]

I got the same letter, mine was a business account

[~bs]

interesting... I wonder if they're afraid of exposure and wary of another recession. they did the same thing the last recession. the credit card companies got hammered by bad debt the last time around.

[kork13]

Yep, my wife got a similar letter from Chase just last week about a card she had before we got married 3 years ago, and hasn't used but once or twice ever since. We don't care at all...in fact, I kept meaning to call & cancel it, but never got around to doing so. Thanks, Chase!

But yes -- open, unused cards are drains on CC companies' bottom line, and mean nothing to them but added risk with zero benefit. Clearly Chase decided it was time for a cleaning of house, if we all got such letters at once.

[MooseBucks]

interesting... I wonder if they're afraid of exposure and wary of another recession. they did the same thing the last recession. the credit card companies got hammered by bad debt the last time around.

My understanding is they close them in order to save vs the cost of keeping them open with no usage. I had Citi close a card on me about ola year or two ago due to no usage. There was no way for me to keep it open and it was one of my first cards I ever had. Now every 4-6 months $5 from my Verizon bill goes on every credit card I have to try and prevent this from happening again.

[~bs]

My understanding is they close them in order to save vs the cost of keeping them open with no usage. I had Citi close a card on me about ola year or two ago due to no usage. There was no way for me to keep it open and it was one of my first cards I ever had. Now every 4-6 months $5 from my Verizon bill goes on every credit card I have to try and prevent this from happening again.

credit card companies generally do. but I remember during the recession, it was above and beyond. they were closing down lines that didn't have too much activity, and reducing people's lines involuntarily.

[disneysteve]

I'm glad I started this thread. Knowing that several others have had the same thing happen is interesting. Chase must be cleaning house.

This is different than during the recession, though. Then, there were many people who were way overextended with their credit usage. I'm not overextended at all. We pay our bill in full every month and have very little other debt. Sounds like this was more about getting inactive accounts off the books.

[~bs]

^

sounds like it steve.

[breathemusic]

My boyfriend didn't even get a letter (or if he did he must have thought it was junk mail and tossed it). He went to change an old card that he hadn't used in a long time from Citi to the double cash and they had just closed his card. It was a card with some of his oldest history, so he requested to re-open it and got denied even though he has excellent credit. Crazy.