Inactive Credit Cards: Will They Close Automatically?

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Dylan1982
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Inactive Credit Cards: Will They Close Automatically?

Postby Dylan1982 » Fri Mar 09, 2012 8:23 pm

I have my Rogers & Hollands and Express credit cards, all of which I have been inactive for 5 yrs or so.

My question is do they close automatically? If so is it bad that they close? Can you re-open them if needed?

I don't know if it is good or bad to have them closed. Trying to get my cc utilization down, and maybe having the credit line open on the two cards could help me?
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)


ooxs
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Postby ooxs » Fri Mar 09, 2012 8:59 pm

Yep if you are not paying an annual fee, they automatically close most account if you have no activity in two years. You can re-apply , having the credit line will bring down your utilization and helping your score.

Dylan1982
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Postby Dylan1982 » Fri Mar 09, 2012 9:37 pm

ooxs wrote:Yep if you are not paying an annual fee, they automatically close most account if you have no activity in two years. You can re-apply , having the credit line will bring down your utilization and helping your score.

No there is no annual fee with these two cards. Does it look bad on your credit if they close? That kind of sucks that you need to re-apply being that I already own the card.

By re-applying, will that be a soft credit inquiry or hard inquiry?
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)

ooxs
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Location: Michigan

Postby ooxs » Sat Mar 10, 2012 6:18 am

Banks will do this from time to time with inactive credit cards to reduce maintenance. If you re-apply, it will be a hard pull and you will have to use the account at least once a year. These account will still show up on your credit report for the next 10 years, the reason why the account was closed is stated on your credit report, simply not using a card will never be a negative factor.

Unless you re going to use these crads or can find use for them now, i will not apply and save myself the hard pull.

Dylan1982
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Postby Dylan1982 » Sat Mar 10, 2012 6:41 pm

ooxs wrote:Unless you're going to use these crads or can find use for them now, i will not apply and save myself the hard pull.

You said it right there. I am going to save my self a hard pull. I do not plan on using them anytime soon.

I was looking at Credit Karma, I have a total of 25 accounts; 17 closed and 8 active. The closed ones like you said in my other thread, they were closed by lack of activity. I've never closed an account just because.
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)

ooxs
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Postby ooxs » Mon Mar 12, 2012 4:45 pm

Wize choice.
The thing to consider is why get a hard pull for a card you will not use when you can get a card with cash sign up bonus / point bonus that you will use. Just remember to use your cards/accounts at least once a year even if $1.00



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